Posted by Wanda Loskot on May 26, 2000 at 15:04:13:
In Reply to: NICHE OR NOT NICHE? posted by Rita Fisher on May 26, 2000 at 01:11:56:
: My question is: I have known about the need to find a niche for a long time (from my talks with
Paul and Sarah Edwards), but I'm afraid.
Dear Rita,
Most people are afraid of the niches.
That's why most people do not develop a niche.
And that is why majority businesses fail - in my opinion.
Your fear is natural, but being bold and curagoeus is part
of being an entrepreneur. Taking risk is necessary.
You are risking MUCH more by being a generalist.
> I'm afraid to step out and specialize. I thought that by
> becoming a resume writer, I have specialized enough! Didn't I?
Not really. You narrowed it a bit but it is still too big market
to call it a niche.
Just think, almost EVERYONE looking for a job is in your target market.
Can almost everybody BE a target?
Zig Ziglar said that when you want to have a duck for dinner you need to
shoot a duck, and aim at the duck - not at the entire flock....
> Do I need to specialize further? (Like serving one certain
industry?) What are your thoughts?
Specific industry, or industries would be a niche.
Or specific professions.
Or age groups.
Right along those lines.
You can go after two or more niches, but you need to define them more than this.
The more specifically you describe your most wanted customer,
the easier it will be for your to get business.
Because you will be able to identify yourself more with the
most burning problems of your most wanted prospects so that
you can offer the most desired solutions
In any case - niche, niche, niche more!
The narrower your niche - the more you will sell.
Please read what Harry Webber, author of "Divide & Conquer:
Targeting Your Customers Through Market Segmentation" says
on this subject:
"One of the short-falls of most businesses that purport to
serve specific market segments is the lumping together of all
their prospective audience into one category...e.g. "seniors".
We have found in our work with "Seniors" for the healthcare and
travel industries that there are at least ten sub-segments to
each of the traditional consumer segment categories.
For example:
1.) Seniors who are retired
2.) Seniors who work
3.) Seniors in good health
4.) Seniors who are health impaired
5.) Seniors who are financially secure
6.) Seniors who are financially strapped
7.) Seniors who live with their families
8.) Seniors who live alone
9.) Seniors who are active participants in life
10.) Seniors who are sedentary 'observers' of life.
Add to these sub-categories the five basic ethnocentric indicators
of American society (Anglo, African-American, Hispanic, Asian and
Other) and you now have 50 sub segments of "seniors".
Break those 50 categories into Urban, Suburban and Rural, each with
its own specific traits, buying patterns and usage profiles and you
have 150 sub segments of "seniors".
If you are interested in a specific indicator such as "web
functionality" keep segmenting those 150 sub-segments into "Seniors
who ARE computer/web literate" and "Seniors who are ARE NOT
computer/web literate" for a grand total of 300 sub segments of the
"Seniors" market segment.
The true work of market segmentation is to determine:
a.) What are the unmet wants, needs and desires of each of these 300
categories of "Seniors"
b.) Which of the unmet wants, needs and desires of these 300
categories of "Seniors" can be addressed by your clients product
or service and which cannot.
c.) In what unique and meaningful ways can your clients product or
service be positioned to meet the unmet wants, needs and desires
of the selected sub-segments.
d.) In what unique and meaningful ways can your clients product or
service be improved to meet the unmet wants, needs and desires of
the non-selected sub-segments.
e.) How can your client build an on-going relationship with as many
prospects in the selected sub-segments as possible.
f.) How can those relationships be utilized to build awareness,
interest and trial for your clients product or service among
prospects in the non-selected sub-segments.
Market Segmentation is not easy work. But it works."
I highly recommend Harry's book! - you can order it online
- just click the link below
Sunny greetings,
Wanda