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Why finding your Niche is essential?

Generally, small business owners are confused about what their target market is.  Very often I hear my target is Everyone!  But in reality, this means “No one.” If their main goal is to generate as many leads as possible, many business owners try to serve as many potential clients.  This approach seems logical; however, this is a huge mistake.   Business owners worry about narrowing down their target market because they don’t want to exclude potential customers.  This mentality is frequently encountered among start-up companies with a lack of marketing strategies.  Excluding customers is a good approach.

Narrowing your market is known as a “niche”.  Let’s define what a business niche is; a niche is a tightly defined portion of a subcategory; for example, think of a category like Interior design and architecture; this is a vast category.  For example, we take one of these subcategories to let’s say commercial construction and renovation would be a niche.  We could tighten it up even more to only restaurants design and construction with complete concierge services could be your niche. Designing an ad for someone hunting for a commercial real estate location to open a restaurant –who will most likely need a complete design and construction–, would be certainly a hit target. This type of service defines your niche.   Good chances are that you are thinking, that doesn’t make sense; why would I want to limit my market so much.

The answer is when you have a tight marketing budget, and your focus is too broad, your marketing message will diminish.  When we design marketing communications for potential clients, we want them to think yes! That is what I need. Let’s say you have finally found that great location to open that coffee shop you always dreamed of; wouldn’t an ad that targets your specific problem catch your attention? It will not be the same if this communication form targets all remodeling construction areas like home renovations, new construction, etc.

Consequently, it is an excellent reason to choose a narrow market to direct your marketing campaigns.  It does not mean that offering a broad range of services has to be excluded; each category of services is a separate campaign targeting a specific area. The key is to become an expert inside your area of expertise.

 

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