Are you targeting the right niche?
Some companies feel that they need to send out a number of promotional materials and marketing messages in order to gain the attention of their customers. If you aren't targeting the right niche market, you could end up causing a number of problems for your business. You will lose a lot of money on marketing efforts that are not providing you with some type of financial return for the company.
Marketing to a large audience isn't going to do your company any good if these customers are not interested in your products. It's less profitable to your company and it eats into your marketing budget if you are marketing to people that do not care about your company. A niche market is a narrowly defined group of people that have an interest in your company and the products you sell.
Here are some things that will help you as you are trying to find your niche market:
Do your customers have needs that you can fulfill?
This is the biggest question to ask as you need to find people that need what you see. You must do market research in order to pinpoint these audience members and to also find competitors you may face. This helps you to design a marketing approach that is unique to your market segment. One other thing that you need to concern yourself with as you are trying to find customers that you can help is to take a look at your geographic location. For example, if you sell food that is delivered to their home will you be able to deliver the food to them if they live 50 miles away or do you have a smaller delivery area? Always watch geography and the role it will play as you are trying to target your niche market.
Always know who you are up against. As you define your niche market, you will actually get some help from your competition. You need to position your business to become more attractive to customers from the competition. Your products need to speak to the customers in a way that the competition doesn't in order to convince them to purchase your products and services. Provide your customers with some reasons why they need to purchase your products as you focus on their value and the needs they fulfill.
Pricing and Market condition
The other thing you need to concern yourself with is the price of your products and the current market conditions. When the economy has been hit hard, people will try to cut out unnecessary expenses, which may end up becoming your products. You need to price yourself correctly for your niche market to remain interested.
Reach out to your existing customers
One way to find new customers that are part of your niche market is by talking to your existing customers. Ask for referrals as they can usually provide you with great leads for the company. Since existing customers are already sold on the company, it's easy for them to convince their friends why they need to work with your company. Direct mail advertising is a great way to get in touch with your existing customers. Another way is by contacting them when they are in your store. You will need to offer them some type of value for their help. Cash back rewards are always a great way to show your customers you appreciate their help and support.
Finding your niche market will help you build a stronger business and remain profitable for many years. You need to continue seeking customers that help you stay in business despite what the economy may be doing.