How To Identify A Responsive Market Segment To Sell To
You won’t believe this…
But 4 out of 5 customers feel that businesses, the ones they buy from frequently, have absolutely no clue what they want. In other words, businesses are thought to be only interested in shoving their products and services down the throats of customers.
This is hardly a surprise as every person is a unique individual.
And businesses that cater to a large audience cannot possibly conceptualize a unique marketing angle for each and every person. The costs alone would send them under.
If you are running or starting a business, it is inevitable that you want everyone to buy from you. That is a normal instinct.
But unless you have millions of investors’ dollars behind you, backing your endeavor into a particular market, marketing to the masses will quickly lead you into corporate oblivion.
You simply cannot afford to bust your budget that way.
The worst part is that you could be alienating the very prospects that need your products or services the most. Not because what you offer will not help them. But because they don’t feel connected or feel any affiliation with what you represent. This keeps their cash in their pockets.
This is why in the last decade or 2, niche marketing has become such a buzz word among budding entrepreneurs. Especially those working from home as one-man operations.
The traditional way to dominate a market is to build a big brand with the masses and niche down to smaller segments. The new trend of doing business is to conquer or dominate a small specific niche, then build upwards to other segments.
If attacking a niche is what’s on your mind, you might find the information invaluable. While if you still have the mindset of big branding, you might just change your mind after reading this.
The problem with small home businesses is not in identifying a niche. That’s the easy part.
Who cannot see what a market lacks or the mistakes companies are making? Even my grandmother could do that.
Some evergreen niche markets that will never run out of prospects
- Weight loss
- Back pain
- Real estate
- Hair loss
- Wealth accumulation
- Dog training
The problem is in identifying which segment among segments have an immediate need that desperately needs resolving. Knowing that will enable you to see inside the consumers’ mind and craft your marketing message accordingly.
Learning who these perfect prospects are is not as basic as saying “young adults who are single”. That might be a model answer in a marketing test in class.
But to really get the best results in as short a time as possible, it runs deeper than that.
For example, targeting people who want to lose weight is not specific enough. Being specific is targeting people who need to lose weight quickly because they have diabetes.
With reference to the above example, a product might work for all parties whether they have diabetes or not.
But when a marketer creates marketing material for the masses, those with diabetes who need to lose weight fast (who are also very trigger happy) might not feel that the program is suitable for them.
Whereas, if a slick marketer writes and produces sales material specifically targeting diabetics, how well do you think his message would be received? Especially when Doctors have advised patients that losing weight is of paramount importance for health reasons.
I get it. You are not just looking for a side income. You want a bigger market than that.
But come on… How are you going to compete with the big brands in the market space already dominating with their weight loss plans?
As a small player just starting out, the best strategic business move is to corner a small market before expanding into affiliated areas.
This concept works with almost every market there is.
Just look at Apple. For years, their computer business was flapping. Who would have imagined that they could get into the portable music player space, let the alone the smart phone. They conquered the space in that segment and then build upwards to other segments.
The challenge to a small business owner therefore is to identify which segment, or niche, to enter.
Remember that you want prospects in your chosen segment to already be in the mood to swipe their credit cards.
This means that the market segment you select must have prospects who:
- Are experiencing pain or losses from a lack of a solution
- Already understands that they desperately need a solution
- Are actively searching for a solution
- Ready to take action
- Have the means to buy or at least try the products
- Does not have a famous proven product to turn to
In a mass audience, you won’t find all consumers meeting these factors. In this sense, it becomes tougher for a small business to thrive.
The marketing message becomes too bland with no edge as marketers attempt to create advertisements that appeal to the masses instead of a specific group. This usually means a big budget with a lower conversion rate.
Whereas, if you can be specific and identify the niche within a segment that is most responsive, you will be able to reach them psychologically and emotionally by producing marketing material using keywords and phrases that have meaning to them.
One of the biggest mistakes made by business startups is trying to take a bigger bite of the market than they can handle. There is nothing wrong with thinking big.
But as you can see, by going small, you will be more able to focus your resources like a laser. This give you a better chance in getting results more quickly. You can always branch out into other related areas when you have built a good foundation of customers and business reputation.