Many small businesses fail to narrow their niche due to fear. Often their concern is that marketing to one niche will be turning away business from anyone not in it. It’s true; when you market to a specified niche, you do end up turning away some business. However, the gains you get from being focused on an niche outweigh the negligible losses. Narrowing your niche strengthens your message and deepens your knowledge of your target market.
You empower your message by having a clear audience to speak to. Without a niche, you have to speak to everyone. If everyone is important, then no one is important; you dilute your message this way. If a car company sells to everyone, it could say, “We build cars for everyone: safety, speed, economy, and luxury are what we do.” But a sports car company would say, “With a racing pedigree second to none, we develop cars that are responsive and fast, for when you need them to be, or just because.” The sports car company’s message resonates with its audience. This is because it doesn’t have to please everyone; they only have to please customers that want fast and responsive cars. The “everyone” car company has opposing values. People tend to associate speed with danger, so how can it be safe? Those who would buy a luxury vehicle don’t want the word economy associated with their car; economy is another word for cheap. Rewriting the “everyone” car company’s positioning statement would not appeal to everyone. To appeal to some you must detract from others. Remember, if everyone is important, then no one is important; you dilute your message this way.
Being focused on a niche allows a small business to learn their customers’ needs. You no longer have to appeal to everyone: all of your marketing efforts can gauge against a single audience. Through marketing and talking to this audience, you will be able to identify what works and what doesn’t. This will provide invaluable insights that deepen your knowledge. Leveraging these insights will further engage your audience and reveal more insights. It’s cyclical: the more your learn about your audience, the more you can engage them, and the more you will learn from them.
A strengthened message and deepened knowledge of your target market are results of having a niche. Resonating your message with your customers is paramount to increased engagement. Marketing to everyone dilutes you message and decreases the effectiveness of marketing. Porsche makes twenty-three times what Ford does per car. Yes, some of that is paying a premium, but Porsche positioned themselves as a premium product, and targeted a niche that was willing to pay that premium.permalink
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