Aligning your marketing strategy to your consumer is very important for success! You cannot be all things to all consumers. For example, you can’t necessarily be the best restaurant that serves Chinese, Mexican, American, and Japanese cuisine all in one place. Unfortunately, especially true in smaller markets, small businesses feel they have to be all things, but remember a more successful strategy is to focus on what you do best or a few specific things you do best (your core competencies) and build your business upon that!
• The marketing term, niche, means concentrating marketing efforts on a specifically defined segment of the population with product features that aims at satisfying market need.
• Success Strategy: Find your niche, develop your niche, and do so better than anyone else. Of course, this niche has to be big enough to be worth your while…or you are going to have to have several niches you fill well. Understanding your customers in your market(s) is critical for developing marketing strategies to fill market niches.
Consider the importance of market segmentation, which is more than just gender or basic demographic segmentation. Just think about your company and how many different kinds of people you serve. Before 1960, Coca-Cola produced only one beverage aimed at the entire soft drink market. Today, Coca-Cola offers dozens of different formulas to satisfy a diverse community of consumers.
Did you know that there are “Bases for Segmenting Consumer Markets?” Here are some highlights:
• Geographic segmentation-based on needs of different markets—
o Regions, market size, climate, market density
• Demographic segmentation-based on examining the consumer by --
o Age, gender, income, ethnic, family life cycle
• Psychographic segmentation-based on considering your consumer by--
o Personality, motives, lifestyles, geo-demographics
• Benefit segmentation-based on grouping consumers into market segments based on the benefits they seek from the product
• Usage-Rate segmentation-based on the amount of product bought by consumers—
o 80/20 rule applies as generally 20% of all consumers generate 80% of the revenues
Why does consideration of segmentation matter in niche marketing strategy? When developing strategy, place your customer at the center of marketing campaign. Design messages that specifically targets them based on one these categories for greater success, recognizing that you cannot be all things to all people nor try to appeal to all people with one marketing message. When segmenting your consumers, then targeting that segment, this will help to ensure a better alignment of the message to the consumer.
Some of today’s most successful advertising campaigns are focused on psychographic segmentation awareness. Consider what appeals to consumer’s personalities, their motives for purchasing, and especially their lifestyle. Think about how many ads on television focus on portraying a lifestyle when a consumer uses the product (ease of use, pleasurable lifestyle experience, etc.). Creative ad content will include a way to engage with a consumer based on appealing to them through one of these bases of segmentation, with psychographic or benefit being the most commonly proven successful strategies. The next time you develop an ad campaign, put your consumer in the center of your strategy and target the message through appeals geared toward a benefit or lifestyle depiction.