Niches have become a popular way of focusing on one target market. But when the niche becomes a limitation, it’s time to expand your horizons. One of the primary rules of marketing is to identify and court a target market. In today’s vast and complex market, the dream to which many companies aspire is to define and control a small niche.
The niche is seen as a way of limiting infinite possibilities by zeroing in on a manageably-sized target market. Understanding and serving this market efficiently then becomes simpler and more feasible, or so the thinking goes. However, it is possible to get carried away with the niche concept, and to whittle down the scope of your target market to an unwholesome degree. “Niche” was a true buzzword just a few years ago, but like all fads, its value eventually drowned in excesses.
Marketers are now more likely to need broader target markets, not narrower ones. When you invest in stocks, experts will tell you to diversify. The idea behind diversification is that the market carries some industries up while others are falling back; if you are invested in a wide enough array of businesses, you will never lose everything and your overall returns will be greater. The same basic principle applies to the professional world. Diversifying your revenue stream helps you stabilize your profits. All industries have cycles, and if your clients are all involved in the same industry, their downturn will be yours. Networking with a broad range of contacts will keep you from falling behind when any particular industry hits the doldrums. Also consider how you can expand your product range to appeal to more potential consumers.
If your target market is too small, you may have reached saturation point (especially if your company provides once-off products or services that don’t need to be renewed or replaced regularly). If additional products are not feasible, either from a financial or production standpoint, consider selling information. If you’re running a company, chances are you have some kind of expertise in a particular field. Brainstorm ways you can profit from spreading this knowledge around, either by offering your services as a consultant, holding seminars or lectures, or sending out newsletters to subscribers.
Are you too limited in terms of your geographical service area? Think about the logistics of expanding venues or distribution chains. There are always more people out there who haven’t heard of your company. If you can’t find them in the community you’ve established, maybe you can look beyond that area. There is wisdom in niche marketing, but you shouldn’t let the concept narrow your thinking and your horizons. Be creative; think of novel ways to increase your profile and entice consumers. There may be many consumers out there who fit your target market profile and don’t even realize it. Go the extra mile to reach potential consumers and watch the possibilities of your niche opening up
