by: Jan Loyola
How many times have you heard or read that when you start a business, you must have clear definition of your target market? How many articles and blog posts have you read emphasizing the need to concentrate on a micro niche?
On this regard, focusing on a specific demographic will help you build up the initial number of business leads that your company needs. By concentrating your lead generation efforts to attract a well-defined market, no matter how small, will prove to be more beneficial than say, targeting a macro niche. Why is this so? The macro niche is saturated with business leads characterized by various specifics. You can very well expect that other companies are targeting these leads through a specific market characteristic. This means that you have an unspecified large number of competitors that you have to outdo to get the attention of a few business leads. When you work on the micro niche first, though competitors are still present (as they ever will be), performing competitor research won’t become too much of a hurdle and you will be able to develop your lead generation strategies, product and services to provide a solution on the aspects where your competitors fail to deliver.
Understandably, niche marketing can become a bore for impatient business owners. More often than not, they eagerly expand their marketing efforts to include a much wider market niche. Though expansion early into the game is not prohibited, doing so without first fulfilling the proper conditions will likely spell disaster. What are these conditions?
1. Resources - resources come as different factors:
- Workforce - are your employees equipped with the proper tools for handling more customers demands, whether for lead nurturing and lead management?
- Equipment - are your existing software and hardware capable of processing more data?
- Finances - do you have the financial security to maintain operation should your foray into a larger market fail to attract leads?
2. Data - data factors include:
- Market definition – no matter how large your demographic is it should still be identifiable so that you can develop adequate and effective lead generation campaigns.
- Market competition – do you know how large and how established are your possible competitors are?
3. Strategies - your strategies, apart from your products and services, are what distinguish your brand from the crowd. These include:
- Lead generation strategy – you may be using the same marketing channels as others, but how you use them is all yours. Make sure your strategies to generate sales leads are adaptable or that you have a new strategy prepared for the new market.
- Response strategies – though you can’t accurately predict how your competitors will act and form an adequate response before hand, you can come up with a proactive strategy that will allow you to adapt easily to any emergency that arises.
Looking into these conditions, you will see that entering a market, any market, for the first time requires similar factors. While there are a blessed few who succeed through sheer luck and determination, entering a venture fully prepared and adaptable will lead to a much higher chance of success in the long term.