Marketing experts don’t always share the same philosophies when it comes to how to approach marketing. One area in which I have seen some division is the idea of niche marketing. Do small businesses need to choose one niche market for their products and services? Do you need to choose one target market and go all in? Let’s explore!
Schools of thought on this topic tend to be more polarized than makes sense to me. I often find that the marketers that most aggressively back the niche marketing idea are ones that are – or are following – social media marketing gurus. In some of those communities, the concept of choosing one niche is considered to be a fundamental rule of a marketing plan.
I don’t believe it is as clear cut as that. I will explore the positives and negatives of niche marketing – and not niche marketing – here.
While I absolutely believe that you need to know your target market(s), and you need to talk directly to your target market(s) with a message specific to each of them, I have also seen that many businesses have multiple target markets and can successfully reach each one separately. In addition, I happen to have a business model that was built entirely from marketing to a wide target market: Small businesses. So, through my experience, I have found that one size does not fit all in terms of marketing approach.
One size does not fit all in terms of marketing approach. #marketing #nichemarketing #smallbusiness #smallbiz #biztips
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What are the positives of a niche marketing strategy? First, you can dedicate your marketing efforts to one industry, one market, and – in so doing – be more efficient with your resources. You can spend time building relationships within that niche that will be attractive to future leads or partners. Plus, for those who only want to work with people who are proven experts in their industry, you will more likely pass the test.
Downsides? With niche marketing, you give yourself little room to pivot if something happens to your industry that affects your earning potential. When you put all of your eggs in one basket, that basket has to hold up. If outside forces affect the market you have chosen – as they do for EVERY market at some point or other – you are then forced to ride it out. Times like these can provide great opportunities for PR and relationship building within a community so that you are seen as a leader when conditions bounce back, but that work may be underpaid or unpaid in the toughest times as your market tries to gain a foothold again. If you give yourself more lanes to swim in, you can maintain other revenue streams while you invest in the future of the niche market that is struggling.
With niche marketing, you give yourself little room to pivot if something happens to your industry that affects your earning potential. #marketing #business #smallbusiness #smallbiz #biztips
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If you have multiple audiences, you can still approach each of them the way you would approach one niche market. You can use specific tactical approaches to call each one in. You can market to each of them in a different place. You can make each of them feel that they are the only market you are reaching. The advantage of this approach is that you have more security, more options, more places to pivot in an emergency. For the client, your work is also infused with information you bring from other industries. This often means that you can present solutions and ideas that you have seen tested in another environment – ideas that for their industry would make them an innovator. The downside is that you will be spread thinner, and your resources (time, money, personnel) will have to be split across multiple markets.
If you have multiple audiences, you can still approach each of them the way you would approach one niche market. #marketing #smallbusiness #smallbiz #business #biztips
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Anecdotally, I also happen to be in a business that has fared well by having a wider market. Although I can dip into niche industries, and I can tailor my language for different regions, I also am able to speak to a broader small business market. Why is that a good thing for me? There are other businesses out there trying to do the same thing that have been incredible partners for me. For example, my relationship to the Americas Small Business Development Center network has been an important one for my business. Centers throughout the US have been able to utilize me as a speaker and a coach, because they know that I will be able to work with any type of business in the room. And they have to do that as well. They most often require service providers who can cross industry and then dial in to a niche as necessary.
So, what is the right approach for your business? Use this opportunity to think about what the best market is for you, and if it is actually more than one. Not every business should have the same strategy, and designing yours is the first step to a profitable marketing plan.
Want to start working through who your target markets are? Check out my worksheets for identifying your target markets, with Business to Business and Business to Consumer versions available.
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