The Business Development Agency > Entrepreneurs > IDENTIFY YOUR NICHE MARKET & MAKE MONEY!

So I want to talk about finding your niche market! What on earth is this you ask? Well, this is otherwise known as a sub-set market on which your product or service is FOCUSED.

One of the errors SME (Small and Medium Enterprises) owners tend to make is trying to shape their products to fit almost EVERYONE. The truth is however, if you’re in the food business for instance, in as much as everyone may want to eat, and considering that food is a need for all humans, further narrowing down the KIND of individual you’re looking to feed will work at your advantage.

I’ve had conversations with small business owners saying they don’t want to limit themselves by only targeting one small group, but in actual fact trying to be all things for all markets is an even greater limitation & risk.

The very first step is to understand that there are two basic markets you can sell to, one is the consumer and the other is business. Now these are quite straight forward in that if you’re selling burgers, then you target consumers, but if you sell large fast food kitchen equipment, then you’re looking to target restaurants which are the businesses. It then also happens in some cases such as when one is a beef supplier or cattle farmer, you may market to both businesses and consumers, but you would still need to be focused enough to know your NICHE and therefore put systems in place for effectively delivering the product to them, such as large quantities of beef at a given time if your niche are butcheries.

Let me make a simple example Playtown (Kiddies restaurant), their main focus or Niche are families, so you can safely bet that you most likely won’t find, anytime soon, a guy on one knee popping (with a loud voice) the big question to his lady over a plate of juicy chicken pops and the ‘romantic’ background sound of screaming kids who are out with their families. The advantage of their focus on families as their niche is that they can further create an environment in their restaurants that suite such a market, big comfortable chairs, play area & free balloons to keep the young ones occupied, all are easily strategized when the target is CLEAR.

Another example would be, Total Sports & Foschini are both retail clothing shops; however Foschini targets your middle class, fashion conscious individual whilst Total Sports simply targets active individuals (perhaps those that are regulars at the gym) and athletes. They however market their brand as the ‘it’ clothing line for all health conscious and active people. If you look at their adverts, they almost all the time have this extremely well chiselled six pack (stomach) of either a male or female selling the idea of sports or an active lifestyle. Now, though this is the target for Total Sports, we also see ordinary (some unfit) individuals with no interests in partaking in sports whatsoever (aside to perhaps watching it) buy the products. This is no train smash, consumers outside your target can be drawn in any direction they choose, but it’s imperative that you as a brand keep your focus on the niche market also, when you look closely to every advert whether on print or television that Total Sports runs, you will always see clearly who it is they’re looking to interest. (pay more attention to ad campaigns – There’s a lot of psychology there).

One of the 2 great advantages from my experience in having a niche is definitely the high quality and focused marketing that would result from knowing exactly whose attention it is you’re trying to get. If you’re a web designing company for instance, marketing online would be your best bet as opposed to handing out flyers at a shopping mall. Why? Because individuals looking to have an online presence are most likely to go ONLINE to search for this. This not only gives you better results in terms of your marketing efforts but it also saves you money because you know EXACTLY who it is you’re looking for, where this kind of consumer would be, and when. (Contact The Business Development Agency team for such business advisory services focused on this)

So, if you already have a business even if it’s a graphic design company, though graphic design services may be required by big corporate, independent musicians, start-ups and so forth, all these may have different needs above just the graphic work and so identifying your niche will allow you to structure rates most appealing to them that you target, as well as help you identify and add augmented services for added value.

From this point, your marketing campaigns would be much easier and clearer, meaning more potential for growth of the company. ALL THE BEST!

Article by Pearl Maphumulo


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