3 Reasons Why You Should Be Targeting A Niche

04 February 2015

One of the problems that we encounter at our consulting firm is when a business has such a great product that it’s accessible to just about everyone. Doesn’t sound like that’s a big problem, does it?

Well, actually, when it comes to marketing such a product, we often find that businesses are quite resistant to create a more targeted approach, as they are afraid of “losing business”.

The thing is, even if your product or service really is accessible to “just about anyone” or even something reasonably broad like “everyone in the UK” it will still serve you better to choose a niche and target it – and it’s more than likely to actually increase your sales.

Here are three reasons why:

1) Your Marketing Strategy Becomes More Focused

When you target a niche, your marketing becomes very coherent. What this means is that you can ensure that every action you are doing is pointed in a single direction, so that when your target niche encounters your product or service, they are immediately drawn in by everything you are doing. You easily start to appear like you understand them, and therefore would have something of value to them.

When you create marketing that could appeal to just about anyone, just about everyone ignores it. It becomes “just another product”. We’ve been business consulting in London for over 8 years now, and it is pretty clear in the UK: if you want to be seen, you need to be a bit different and very specific.

2) You Can Appeal to Your Customer’s Emotions More Easily

It has been proven with fMRI neuro-imagery that the parts of brain used when evaluating brands are the ones that deal with personal feelings and experiences – emotions – and not the areas that process the actual information. There have also been psychological studies with test groups showing how people make an emotional decision and use logical reasoning to justify the emotional decision – but the base decision is a result of an emotional response.

So the bottom line is, your business should be targeting the emotions of your customers. It is impossible to try and appeal to the emotions of “just about everybody” – but if you target your niche, it can often become incredibly simple to figure out what emotions are involved and how to appeal to them.

3) Niching Can Give You Faster Long Term Business Growth

When you’re planning your overall business strategy and marketing plan, you don’t have to target only one niche. However, if you do choose to go for more than one, make sure you have the resources to do it.

You will need to have multiple streams of marketing and multiple campaigns going on all at once with different messages, different styles and different strategies. If you think your team can handle that, then go for it. By doing that, you will have segmented your marketing and will be appealing to people much more directly, which is a far more effective approach which will result in greater exponential growth than blanketing everyone with generic marketing.

However, many business advisors – myself included – will often recommend to most business owners that they should focus down on one niche first and target it hard. Once you’re in, and have a really decent flow from that first niche, you can then systemise and create processes, which can be adapted for other niches to ramp up and diversify your marketing.

You can then experience fast and sustainable business growth with very little extra effort.

Remember, choosing a niche doesn’t limit your sales and is, in fact, much more likely to increase them! So choose a niche and start creating a much more focused marketing strategy.

If you would like to hear more about this please feel free to get in touch below.

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If you would like to have an obligation free discussion about selling your business, please email shweta@growthidea.co.uk. You can find more about our investment criterion on https://growthidea.co.uk/private-equity.

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