The First Step to your Marketing Strategy: Choosing Your Customers
April 9, 2013 § Leave a comment
It seems obvious, right? Each group of customers has a particular worldview, a number of problems, a small set of possible solutions available. Each client has a price you’re willing to pay, a story that they are willing to listen, a time period in which you are willing to invest, to solve your problem or to achieve what you want.
Yet very often, we take our product or service first, we tried to make it look perfect and then we launched. Sure the audience will buy it immediately.
For example, a real estate agent must choose what type of buyer before going to buy business cards, renting an office or get listed. The yoga instructor, corporate trainer, the developer of the application, in all cases first you should find out who would like to do business with you, then go and develop their product just for that niche, the more specific be the best.
Here I share 6 tips to choose your customers or your market niche:
1. Competencies and skills.
First determine what strengths, skills, talents and resources. If you are an entrepreneur, this applies to you as a person. If you have a business, do the analysis for the company as an entity that already has its own life and is offering products and services.
2. How are you going to specialize?
a. Solve if you do geographically: a region, a country, a city, a section of a city, etc.. You may want to specialize for people: men, women, children, youth, college students, professionals, workers, etc…
b. You may want to specialize by customer size: large companies, small companies, wealthy families, middle class families etc…
c. You might want to specialize by type of product: cleaning products, food, medicines out, technological products, products for health care etc…
d. You might want to specialize for quality and price: consumer products with short shelf life and low price, or select high quality products and very expensive, or products sold in large volumes against high marginal products profit, but whose sale is at low volumes. Think of the automotive industry, there are many examples there.
e. You might want to specialize in service, you will seek products that are positioned neither for price nor quantity, but for the service that accompanies them: for example, closed circuit surveillance services.
f. It may be that you decide on the channel will use. For example, you can choose business whose product is sold in its own premises and the customer gets to buy them, or products sold door to door and direct sales business or products can be only achieved by Internet or through referrals.
3. Measures the potential niche.
Researches, analyzes and choose, at least three market niches apparent attractiveness. You must ask yourself these questions, for each of the niches is chosen and assumptions that are yours, but you score data are supported by a thorough analysis and thorough investigation.
a. Do members of this niche market have a real desire or need to buy that product or service? Is there really a need or have to invest in creating it?
b. How neglected is really that niche?
c. How many companies or individuals are to serve you right now or intend to do so?
d. What is the size of that market? Is it enough that size for another company and to generate enough sales to generate profits that will require investment in the business?
e. What is the level of risk and market volatility that has that?
f. How easy or costly it is to enter that market?
g. Is it a new or newly established market? For example, if your choice was geographical, investigates how much there is for that group of people, there is frequent turnover in the people or rather it is families who have many years of living in the same area, is elderly or young people . Analyze what they do the residents of that area.
4. Serviceability of the chosen niche.
Once you choose the niche market, if you are able analyzes to assist you:
a. Is it easy to reach a niche and cater for your location or other features?
b. Do you know what the costs of serving this niche market and if sales are attractive potential to make that investment and profit?
c. Should you establish additional investments to the ones you have to enter that market niche? Should you develop new marketing channels to reach them?
d. Will its operating costs in this market niche, smaller, equal or greater than those of the competition?
e. Will it affect these new market niche operations that already has your business or what you are doing now?
f. Will you be able to better meet the needs of your niche market, that competition?
5. Analysis of the future of the niche.
a. How stable over time is the niche you have chosen? Is it a mature or young?
b. Is your company flexible enough to adapt to any changes that happens to your niche market?
c. How much can cost you refocus or redesign your products or services when circumstances warrant?
d. What is the probability that your niche is depleted, stagnate or become extinct?
6. Passion and commitment
This is a rather subjective point, but also has relevance and impact on the success of your business and your personal satisfaction.
Ask yourself, Are you going to feel comfortable attending this niche? Nothing better to focus on what we like. What we like has to do with the people we serve and the products we offer.
Vishal Shah, online marketing writer at Opti Matrix Solution, one of the leading web development company, offers lot of insights on online marketing strategies.