Many Independent Professionals and Small Businesses I encounter struggle with the idea of marketing to a narrowly focused audience. Typically they use the "shotgun" approach to marketing, thinking that if they can only reach enough people, surely someone will buy from them. They falsely assume that everyone is a prospect for their product or service. Taking this approach is a little like trying to market professional dental instruments to the general public in a television infomercial. You'd be looking for the wrong prospects, in the wrong place using the wrong communication tool. 

The reality is that there are way more people than real prospects out there. The goal, then, should be to market to those people who are also real prospects. Targeting your marketing to those who are real prospects is less expensive and more effective than the "shotgun" approach. Why? Because you'll only be talking to prospects who need, want and understand the benefits of your product or service. Your closing rate will increase and your cost of customer acquisition will decrease. 

Choose your niche 

So how do you choose your niche? You can use one or more of the following criteria to help you whittle down who your prospects are. 

1.       Geography: This one's easy to understand for businesses whose products or services meet the needs of prospects within well-defined boundaries, like neighborhoods, school districts, cities or regions. Sometimes this type of geographic limitation stems from the capacity of your business to deliver products and provide top quality service economically and within a reasonable time frame. Other times it has to do with terms of distribution or franchise agreements. And, except in rare cases, it wouldn't make much sense to market certain ordinary products, like a gallon of milk or a loaf of bread, outside your immediate trade area. 

2.       Demographics: Using the common characteristics of your current customers, who include your ideal customers, you can describe your ideal prospects. They would share characteristics like income level, age group, home ownership or ethnicity; industry, business size, revenue or number of employees. Once you describe your ideal prospects you'll find it easier to identify and locate them. 

3.       Occupation or industry: Prospects in this niche will share the common characteristics of working in the same industry or profession. Some examples are manufacturers, attorneys, CPA's, dentists, retailers and food vendors. 

4.       Psychographics: This one is all about what "floats your customers' boats." It describes their likes and dislikes, their hobbies and causes about which they're passionate (religious, humanitarian, political, social). This criterion describes your prospects' reason for wanting to buy. After all, when given a choice of how to spend their money, most people will make purchases of products or services that serve their interests – that make them feel good. 

Now that you've "drawn a picture" of who your ideal prospects are, it's important to make sure that they recognize their problem and are willing to spend money to fix it. This will require some research in the form of surveys, database searches and interviews of members of your niche. 

While you're doing your research, take the time to check out your competition within your niche. Determine how your products or services compare to theirs. Learn what makes your products or services different, and hopefully, better than theirs. Find out how deeply entrenched they are in your niche. Can you edge them out? Or would you find it too difficult and expensive to make it worth your while to do so? 

Assuming your research indicates you should pursue this niche, what's the next step? Make a plan to communicate with the prospects in your niche – and most importantly to put that plan into action affordably. Of course, since you've narrowed down your audience, you can avoid the expense of high priced mass media to "get the word out." Marketing to your prospects wherever they congregate – at clubs, associations or industry groups; in publications they favor; by mail or email – will be more efficient and cost effective than using the "shotgun" approach. 

Research and analyze your market and narrow it down to your ideal prospects. You'll benefit by reducing your marketing costs and time to sale. 

Ó 2006 Patrick A. Hassett. All rights reserved. 

Pat Hassett draws on more than 30 years experience in sales, sales management and sales support roles across several industries. He stands ready to help you increase your sales, your profitability and your customer loyalty through the use of customer-centric sales methods, high level customer service and customer relationship management tools. To learn more about how SalesNow! can help you, go to www.salesnowonline.com or write to infalesNowOnline.com. 

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