Target marketing hits the mark

0 CommentsWednesday • February 24, 2010 • by Michele Dortch

Today’s buyer is hyper-discerning and more sophisticated than ever. They want companies to speak directly to their unique needs. One-size-fits-all marketing just doesn’t work.

Zero in on targeted customers and hit the profit bulls-eye.

For growing businesses, branching out into new markets is a smart move to increase revenue and market share. But use caution! Don’t be lured by the false belief that marketing products and services with broad appeal is best, even at this stage of your success.

When broadening your market, don’t forget the basics of niche marketing. Seasoned businesses must remember these five critical reasons for specializing your business offerings, especially during times of growth:

Reason #1. A niche business gives you focus.

Without a niche, you’re marketing and selling to prospects using the “spaghetti approach.” You throw out as much effort and money (the “spaghetti”) as you can afford, and then see what sticks to the wall (your “customer”). Unfortunately, most of that spaghetti slides off because it was thrown at the wrong wall. With a niche, you may still spend the same amount of money and expend the same level of effort, but the spaghetti sticks because you’ve focused on a customer who was ready to eat your spaghetti right up! At the end of the day, this means better return on your time and money investments.

Reason #2. A niche business gives you expertise status.

Customers love to buy from a specialist. Period. It’s far easier to buy products or services from a company that knows the intricate nuances of a particular industry, subject matter or problem. You don’t want to be the business that is the “jack of all trades, master of none.” Potential customers will flee and those who stay are unwilling to pay what you’re worth because the perceived value of a generalist is lower than a specialist.

Reason #3. A niche business makes you stand out.

If you think you’re in the business of selling widgets, think again. Every entrepreneur, regardless of his product or service, is in the business of marketing. To create a sustainable company, you must constantly be marketing and you’ve got to stand out from a very crowded business marketplace. Imagine that you’re Waldo from the popular children’s book series, “Where’s Waldo.” What is your business doing to show it’s different, unique and special? In Waldo’s case, it’s a red and white striped hat and shirt. A niche gives you the differentiating factor that you need. What’s your Waldo factor?

Reason #4. A niche business costs less to operate.

Don’t fall into the belief that the more people you tell about your business, the more business you’ll get. It’s only partly true. The truer statement is this – “The more targeted people you tell about your business the higher the likelihood they will convert into a sale.” The cost to tell everyone in the world about your business is far higher than developing a niche campaign that only reaches your most qualified prospects, the ones who have a need and desire for your product or service. You want to invest your resources to attract customers that have a genuine interest in what you’re selling. It’s just good business sense, and it saves you a lot of money.

Reason #5. A niche business earns more money.

The culmination of having a market focus, expertise status, stand-out appeal and lean operations is money, and lots more of it. When you niche your business, you just run more efficiently and effectively. Once you’ve mastered one niche and you’re ready to expand, go for it! Chances are, the niches that you carve out after the first one will be smoother and faster because you already have a base of loyal customers who love what you do and want more of it.

The bottom-line: Yes, reaching into new markets can be an effective growth strategy so long as you employ niche marketing perspective to your approach.

Posted in: Sales/Marketing