You make your Logo. Then we'll make everything match.
Divide and Conquer: How to Find Your Niche
By John Williams, president of LogoYes.com
Copyright 2007, John Williams
It is a common misconception that if you’re not casting a wide net with your
marketing, you’re leaving money on the table. Actually, the opposite is
true. It's more expensive and usually less profitable to sell a range of
products to a wide audience. Furthermore, if your product or service is too
similar to a competitor's, price will always be an issue. When price is your
only point of comparison, it's tough to build a successful brand –
especially if you are a small business. Targeting a niche market is a great
way to avoid these issues. But how do you find the right niche?
First, a broad category like "small business owners" does not constitute a
niche. Instead, a niche is much more narrowly defined group of prospects
that conforms to the following:
- Its members have similar, unique needs within the market segment.
You should be able to pinpoint common-denominator needs that differ from
the rest of the market. Of course, these needs must also relate to your
offering and industry. For example, attorneys may have unique needs when
it comes to document copying, but probably not when it comes to the real
estate industry. So if you provide copying services, it makes sense to
target attorneys specifically, whereas it may not make as much sense if
you're a real estate agent.
Geography also plays a role. Local market segments can vary dramatically
from national and global markets, even within the same industry.
- Your product or service meets (or can meet) these needs better
than competing products. Your offering must be attractive to your
niche customers, above and beyond other products in your industry. Offer
compelling reasons to buy your brand that speak directly to special
needs. These reasons do not need to be intrinsic to your product’s
features. They can also extend to the special features of your customer
service.
- You can market to these prospects economically. To attain a decent ROI on a modest budget, it must be relatively easy to identify and reach
your niche audience. Direct mail is a common method of advertising, but
your mailing list can make or break you. If it's too broad, watch out.
Find ways to first narrow your list to qualified prospects, then write
your message directly to them.
- The group is large enough to generate the amount of revenue you need
to remain profitable. Remember, your niche must be feasible from an
economic perspective. If it doesn't make sense fiscally, it doesn't make
sense period.
- Members are not currently being targeted, or not being targeted as
well as you can target them. The best niche is one where the competition
is ineffectual or nonexistent. Find the "overlooked" niche, not the
obvious one.
Determining your niche means asking yourself questions like, Who will most
likely use my product or service? What makes my brand special or unique? Why
are customers choosing my brand?
As markets mature and competition increases, the demand for specialized
goods grows. The more you differentiate your brand, the less competition you
will have, and the faster you'll build brand equity. Find the right niche,
and conquer the competition!
John Williams is president and founder of LogoYes.com, the world's first
and largest DIY logo website. In his 25 years in advertising, he has created
brand standards for Fortune 100 companies like Mitsubishi and won numerous
international awards for his design work.
