Marketing… it’s hard to know where to begin sometimes.
I’m going to break it down into 4 key elements, but first what is marketing?
The definition of marketing is:
The action or business of promoting and selling products or services, including market research and advertising.
1. Niche Market: What is a Niche Market?
Niche marketing is the subset of the market on which a specific product is focused. It’s important to specialize in your corner of the market. If you aim to satisfy the needs as well as the price range of a certain product or service, you now have better demographics to target.
A great way to go about this is to clarify what you want to sell. Remember smaller is bigger. Trying to specialize in everything for every type of person is impossible and doesn’t help your business. By cutting out the unimportant and making things more simple. This makes way for doing a great job of the important things.
So how do you do this? You want to specialize in something that has low competition, high market demand, and a high income potential.
Take this example… you’re in the field of phone accessories. But what type of accessory?
Ok, a phone case…. Ok, but what type of phone case… A phone case that regulates the temperature in hot or cold environments. Does it sound too niche? It’s not. One of our clients is ClimateCase. They have been featured on Oprah and fox gift guides.
I myself have been on the beach where my phone overheats, or in the snow when it stops working because it froze. There is big profit in taping into a niche other people have not specialized in.
An easy list of ways to develop your niche is to make a list of things you do best and your quality skills in each of them. Ask yourself out of the quality skills you possess which ones are in high demand and have little competition?
2. Differentiation Marketing
What is the differentiation between your company and the competition?
Even if there are 50 other companies just like yours believe it not there is something unique about yours. Most companies don’t focus on that but they should.
What does your company stand for? Your values? This will separate you from the rest.
Standing for something and/or standing up against something is that you turn customers into passionate, loyal customers that will gladly help share your message.They feel they part of a movement, a mission, something bigger than themselves.
Apple’s strategy involves selling their consumers a global package of dreams, personal experiences, and status, and it makes almost all other products go unnoticed if they don’t carry the Apple logo.
What is Segmentation marketing? Market segmentation is the activity of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers based on some type of shared characteristics.
By dividing your consumers into sub groups you can better cater to them and get to know them better. Most companies don’t take the time to do it.
There are 4 categories to think about:
Geographic segmentation is based on the consumers country, region, population density, city or town size, climatic zone.
Demographic segmentation is based on age, gender, occupation, socio-economic, martial, family life-stage, family size/number of dependents, income, educational attainment, home ownership, ethnicity, religion.
Psychographic segmentation is based on lifestyle, AIO (activity, interest, opinion), concerns, personality, values, attitudes.
Behavioral segmentation is based on purchase/usage occasion, benefit-sought, user status, usage rate/purchase frequency, loyalty status, buyer readiness, attitude to product or service, adopter status.
By evaluating the market this way you can see where segments might be contracting and other segments may be growing. Which ones will be most profitable, and where there is little competition and high demand. You can see where you can specialize further and see which consumers philosophy aligns with yours.
A strategic approach in which a business focuses on a single market or product. This allows the company to invest more resources in production and marketing in that one area, but carries the risk of significant losses in the event of a drop in demand or increase in the level of competition.
When you are able to know your consumers and focus your efforts it’s the most efficient and profitable way to go about marketing. Contact us for more help with your business plan.