Niche Marketing Matters

For a small business such as a retail store or a service provider, special events can help propel the company and its brand to the next level. Unique events can provide a great perk for loyal customers while differentiating your business from the competition.

Often I am asked, “But what can a little business like mine do that my customers would consider special and actually attend?” The better question to ask is what is important or interesting to your customers? Why do they use your services or buy your merchandise?

A typical special event for a haberdasher (a men’s clothing store) is a “trunk sale” which is an after hours sale. New merchandise is offered for the first time at special prices for invited customers only. This works because of the exclusivity of the event and it provides what the loyal customer wants—special treatment and the right product.

Here is another example that may be a bit arcane, but it really works. Omar’s Exotic Birds is a California retailer of exotic birds species such as Macaws, Amazons, African Greys, and Cockatoos along with cages, food, and supplies. They have a great reputation and provide their customers with much needed support and information about these challenging pets.

Omar’s Exotic Birds just announced an after hours “singles event” for parrot owners on November 16th at their location in Lake Forest, California from 5:00 to 6:30 PM. They call it “Omar’s Singles Sunday” (see http://www.omarsexoticbirds.com/singles.html). The premise is simple: if you are single and want to meet other single parrot owners come to this event and please bring your parrot.

This is just brilliant. Think about it. Parrot owners are a special breed since owning a large bird is a huge commitment of time and energy. It requires very special knowledge—these large birds are very smart, needs lots of training, and some can live for 60 years or more.

Just as important is why do people buy large parrots? My guess is the unique relationship that you can get with this special pet: companionship. For some, parrots are surrogate children like dogs and cats are for other people. And there is a certain novelty of owning an exotic bird (I have a 23 year old Amazon Parrot named Billy). What could be cooler than hanging with a bunch of people who share your passion who also desire to meet you?

Special events are a great way to reward loyal customers and to position your business as different.

John Bradley Jackson
© Copyright 2008 All rights reserved.

“Nothing happens unless first we dream.”

- Carl Sandburg

Dream big thoughts but it is better to build businesses upon little ideas. The most common strategic marketing mistake is to think too big. So, the answer is think small. Think niche.

By focusing on a niche, you become expert at providing your product or service. Because you understand the needs of this niche, your marketing message resonates with truth and fit; and your target market buys from you. Your customer is happy because of your expertise and product quality. Your happy customers gladly refer you to other prospective customers who have the same need. This referral process lowers the cost of sales, since you do less prospecting and qualification.

Conversely, the more general your solution and the less specific your customer, the more likely you are to fail. The more you diversify your efforts, the less centered you become. An overly broad charter keeps you from gaining customer knowledge and from gaining operational efficiencies. Your marketing message is weakened by your lack of focus. You get fewer references. Selling is harder and keeping your customers is difficult. Your customers are not as happy.

Niche marketing makes finding the customer easier. You can cull out the customers that don’t fit with your plan since not everyone gets the honor of being your customer. Successful niche firms say “no” frequently and don’t waste their time on customers that do not fit their niche. The wisdom in knowing what business to avoid is critical to a niche play.

It is OK to dream big, but you need to think small.

John Bradley Jackson
© Copyright 2008 All rights reserved.

If your business is not actively engaged in web-based marketing, it is likely you are going out of business.

One of the best examples I can describe is the book business of which I am an active participant. The era of the brick and mortar retail store is quickly being eclipsed by the online or virtual bookstore. The traditional bookstore is a “hits” or “best seller” business and cannot begin to carry all the titles that the readers desire.

Instead, traditional bookstores stock only the top 1-2% of books published leaving the rest of the titles to the online booksellers like Amazon. In fact, when I visited Amazon today their book titles totaled am amazing 19,382,861 individual titles.

The real statistics on the book business are rather startling. 75% of U.S. adults haven’t been in a bookstore for the last 5 years and bookstores sell only 45% of all books sold.

The majority of books are now purchased online and the trend is increasing. The consumer is voting with their keyboards and is demanding more titles. The only way to deliver the other book titles is through the efficiency of the online store.

Another example of how businesses are embracing the web is that of the retail cookie store in the shopping mall. My friend, Ryan Paules, who owns two “Cookies By Design” franchises in Tarzana and Westlake, California (cookiesbydesign.com) tells me although the aroma of cookies is a powerful stimulant for walk-in purchases, the website contributes up to 30% of his sales and many of his customers are not local.

Ryan attributes this high percentage of online sales to aggressive e-mail marketing, sound e-mail list management, and a good website. Direct mail is a contributing factor too. Much like the traditional bookstore, the cookie store is changing with the times. Also, most of his telephone orders come from people who first looked at the website.

Books and cookies are just two examples about how the web has changed businesses. Change can be good.

John Bradley Jackson
© Copyright 2007 All rights reserved.

Simply put, a market is a group of buyers that are willing and able to buy your product or solution. A market is made up sub-markets or “market segments”; market segments are groups of potential buyers who have similar wants, needs, experiences, or problems. In fact, a wise man once said, “There is no market; there are only market segments”.

Your target market is the market segment that you choose to serve. To truly understand that market you need to be able to answer these questions:

- Who are they?
- What do they want to buy?
- How do they want to buy?
- When do they want to buy?
- Where do they want to buy?
- Why do they want to buy?

Successful entrepreneurs target the under-served or overlooked markets where there is little or no competition. This segment, while small, is still big enough for the entrepreneur to make a profit; simply put this is niche marketing. The key to niche marketing success is the intimacy that you have with the customer needs, problems, and issues. I call this being a “knowledge broker”—- this means being an expert about the customer’s day-to-day life.

This knowledge allows you to create a dialog with them. In time you can build a constituency made up of customers who believe in what you do. If they refer you to other customers you have achieved an advocacy which sustains your business. This is when you know that you have made it.

Turning your customers into your advocates is not easy. It can take blood, sweat, and tears to get them. Your referrals are the best indicator of a bull’s eye hit of your product in your target market. Interesting enough, you may be surprised when you get them since they may not be who you targeted in the first place.

For example, when I wrote my book First, Best, or Different (shameless plug) I figured my book would appeal to a broad spectrum of readers including small business owners, marketing executives, and avid business book readers. While this has proven true, my raving fans are not people that I had necessarily targeted.

My longtime landscaper and gardener may be my biggest advocate. He so enjoyed my book that he has been trading his services for my books of which he gives to friends, family, and other customers. Although I had heavily researched the business book market, I had no idea that a small business owner like him would connect with my message.

The lesson for me is simple. It is not what I think that counts. It is what the customer thinks, feels, and does.

John Bradley Jackson
© Copyright 2007 All rights reserved.

Having thoroughly researched the topic of niche marketing and having written a book on the subject, I can tell you with some authority that there is no algorithm for finding a niche business that is perfect for you. Making that choice is art rather than science.

My research did uncover some commonalities among the successful niche businesses and the entrepreneurs themselves. While I did not uncover a secret formula for success, here are a few of my findings:

1. Many successful niche businesses started accidentally. Sometimes a hobby grew into something bigger. Other times a small idea took on a life of its own.
2. Most niche businesses started slowly with a lot of trial and error. The entrepreneur kept improving the offering until he or she got it right.
3. Most of the entrepreneurs had a special connection to the market. They were intimate with the customers and extremely knowledgeable about their wants and needs.
4. Making money was not the key determinant in choosing the business. In fact, it was initially pretty low on the list of priorities. The rewards came later.
5. The competition was never an issue since the competition typically did not serve the target market or did not serve it well. Most successful niche businesses have little real competition.
6. Most successful entrepreneurs had personal talents and interests that nicely aligned with the niche business. They liked what they did.
7. During the early stages of the business, they somehow found enough capital to survive. Most were self funded.
8. Contrary to popular opinion, most entrepreneurs were conservative and avoided unnecessary risks. They were frugal and made very calculated decisions.
9. Many of the entrepreneurs were sons and daughters of entrepreneurs. It seemed to run in families.
10. The niche market served was big enough for the niche business to make a good living, but was not big enough to draw the attention of the bigger firms.

John Bradley Jackson
© Copyright 2007 All rights reserved.

Visit any running store, bike shop, or supermarket and you will be stunned at the selection of nutrition bars along with all the outrageous benefits claimed: low carbohydrate, high protein, low fat, organic, low sugar, low calorie, etc. While some are truly nutritious, others are carefully disguised candy bars. However, one nutrition bar stands out in the crowd and it is called PureFit.

Founded by running enthusiast Robb Dorf, PureFit’s formula is based on the “Zone Diet,” commonly referred to as “40/30/30.” The Zone Diet works on the theory, that excess insulin, a hormone that controls our blood sugar levels, makes us fat and keeps us fat. By regulating our blood sugar levels, the body burns fat more efficiently so that we lose weight. To control blood sugar levels and insulin levels, you need to follow a low-carbohydrate, high-protein diet that includes moderate amounts of fat.

Dorf couldn’t find a nutrition bar that complied with the Zone Diet and met his high standards, so he made his own. Experimenting with the ingredients, Dorf wanted to make the best and healthiest bar possible. It is interesting to note what is not included in his nutrition bar: hydrogenated oils, animal products, cholesterol, trans-fat acids, wheat, gluten, dairy, artificial sweeteners, or hidden carbohydrates (sugar alcohol.) PureFit was started in 2000 with the purpose of making the best all-natural, high protein, nutrition bars on the market. Officially launched in November of 2001, PureFit quickly has become one of the most popular bars on the market. In 2004 BIKE Magazine named them “Nutrition Bar of the Year.”

But, the story does not end with the bike and running crowd, where PureFit found initial success. Dorf’s obsession with using only the best ingredients created an unexpected bonus of a new market for his product. It turns out that 1 in 133 people are intolerant to gluten and wheat; this widespread but little known disease is called Celiac Disease. A genetic disorder, it has symptoms that range from classic features such as diarrhea, weight loss, and malnutrition, to latent symptoms such as isolated nutrient deficiencies but with no gastrointestinal symptoms. If a person with the disease continues to eat gluten, studies have shown that he or she will increase their chances of gastrointestinal cancer by a factor of 40 to 100 times that of the normal population.

Yep, you guessed it. PureFit’s gluten and wheat free nutrition bar is a perfect supplement to the strict dietary requirements of someone suffering from Celiac Disease. With no gluten and wheat, the low carbohydrate and high protein nutrition bar aids the Celiac Disease patient with the daily battle of not eating food containing gluten or wheat, which seem to be in virtually all prepared foods (and, especially nutrition bars). The bar’s reputation has spread through out the Celiac Disease community by word of mouth and is the nutrition bar of choice.

What I like about Robb Dorf’s story is how he built a business based on doing the right things. He wanted to create a product that was healthy, that used only the best ingredients, and that practiced truth in labeling. He did it and he was rewarded by a bonus of an additional niche customer segment that found and values his products.

Good guys do finish first.

John Bradley Jackson

P.S. His bar is un-coated and therefore doesn’t melt, unlike most nutrition bars, which is a real plus on a hot day! See PureFit’s website at http://www.purefit.com/.

© Copyright 2006 All rights reserved.
My new book “First, Best, or Different” is now available at www.firstbestordifferent.com!
Please buy my book!

Article marketing is one of the best ways to optimize your website, create new sales leads, and to garner new publicity. The really good news is that it is free and easy (OK, it does take some time and a few brain cells).

If you are not familiar with article marketing, it is the process of writing short (250-500 word) feature articles for the web that are posted on internet magazines, commonly called e-zines. You may recall doing a search when you entered in some key words on a subject of interest and found these informative articles written by subject matter experts. At the end of the article was a byline with the author’s name and an URL for you to click on for more information.

There are many benefits to on-line article marketing. Articles are sticky; once an article is accepted on an e-zine website, it can stay listed for months or years. When your articles are posted on numerous e-zine websites, the search engine spiders pick this up; this sends your website ranking sky high the organic way (i.e. no S.E.O. fees!). By writing the article you are positioned as a subject matter expert, which creates sales leads coming to you instead of you chasing them.

The articles themselves tend to be “all about” or “how to” summaries about a specific topic; think niche and be specific. Article readers are looking for help with a problem or they want to learn more about a subject. Remember, the article is not an advertisement, although the author gets credit.

For example, my friend Brad Barrett owns a vertical file storage business called Easi File (www.easifileusa.com). Easi File manufacturers and sells file cabinets and accessories for the storage of large documents such as engineering and architectural plans, artwork, and other documents that are typically filed flat. His unique solution is a vertical filing system that reduces the cabinet footprint by 80%. This is a very cool niche business with a very unique customer. One the ways that Brad finds his customers is through article marketing. Brad has positioned himself as a web expert on the subject of the storage of large documents; by doing article marketing, Brad has customers hitting his site for more information.

Articles can be submitted directly to e-zines that cover your topic, or you can submit to article submission websites that will route them for you. The submission websites have rules of engagement for the articles such word length, topic, and style, but they can be a very efficient way to distribute your article.

Give article marketing a try. It is a great way to get your message out to you target market.

John Bradley Jackson
© Copyright 2006 All rights reserved.
Please visit my website at www.firstbestordifferent.com

What’s the difference between niche marketing and mass marketing? I get asked this question a lot. The answer is simple.

Niche marketing is about serving a unique market segment that is underserved or overlooked by the other providers. The customers in this market segment have special needs that are not being addressed by current providers; they are ignored because the other providers don’t know about the segment’s unique needs or the providers just don’t care. Often the market segment is too small for a bigger provider to make any money.

An example of a niche market would be the “exotic” automobile segment served by the automaker Ferrari; they offer a highly specialized product for a very few, unique customers. Competition and price is not an issue for Ferrari, since their focus is on the users’ very unique “needs”. Ferrari perennially sells everything it can manufacturer with waits of 6-12 months considered normal. (Note to self: I need a Ferrari right away; I need to talk to the wife about budget.)

Mass marketing focuses on serving as much of the market as possible. As Mr. Spock of Star Trek fame says, “It is logical. The needs of the many outweigh the needs of the few. Or the one.” Generally, mass marketing involves providing the same solution to many customers with little personalization. The emphasis is on volume, cost, and efficiency; this is the domain of large providers such consumer product firms.

A good example of a mass marketed product is a Snickers candy bar, which sells in the millions of units and is not personalized for its users. The parent, Mars Incorporated, must worry about price, channels of distribution, the cost of sugar, and the competition at all times. Maintaining market share is their mantra. The customer can lost in the worry.

John Bradley Jackson
© Copyright 2006 All rights reserved.
Please visit my website at www.firstbestordifferent.com

Niche marketing can take on many forms with the basic foundation being that the solution provides for an overlooked or underserved customer segment. How about a Seattle-based bar that serves food and lets you do your laundry at the same time?

So ingenious we wish we’d thought of it first. If you’re in town for a while and your laundry is piling up, bring it down to this Belltown gem, shove it in the washing machine and shout up a cocktail or a beer or a burger while you wait. Part laundromat, part cafe, part club, part cocktail bar, it’s full of low tables on linoleum floors, red-vinyl chairs and stools propping up the long bar and a selection of local artists‚ works on the walls. The club is next door, and grungy dress-down staff will deliver snacks like cheeseburgers and panini sandwiches to your table. Bring your ID though because the bloke on the door didn’t believe we were over 21.

Check it out.

Sit ‘n’ Spin
2219 Fourth Ave Belltown
Seattle, WA 98121
Telephone: 001 206 441 9484

John Bradley Jackson
© Copyright 2006 All rights reserved.
Please visit my website at www.firstbestordifferent.com

The essence of niche marketing is to create a unique solution for a market that is overlooked or not served at all. The market must be big enough for you to make a living, but not so big that everyone will want a piece of it. You need to listen and study the needs of the market. If your solution is on the mark, the market will reward you with referrals and will willingly pay higher prices.

Please meet “The Original BALLBAG Company”. Founder, Doug Rugg, carried the idea around with him to manufacture and sell his unique bags from a childhood experience. As a child in Orange County, California, there were many sunny days to be out on a basketball court in the summer and after school. Each day, he would ride his bike to the Boy’s Club to shoot hoops. His mode of transportation, his bike, was great - except when trying to get home with a drink in one hand and a basketball in the other. His problem played out one day as he lost his balance and crashed his bike into a parked car.

That memory stayed with him, and he knew the answer was in a small carrier for his single basketball that he could use as a backpack, or over the shoulder, hands free bag. He conceived the idea for this product as a natural progression from the original concept of the backpack. The Original BALLBAG is a form fitted stylish carrier for your sports ball and accessories. Unlike a bulky duffle bag or backpack that is not made for sports balls, The Original Ballbag carries your sports ball comfortably out of your way allowing you the use of both your arms. The Original Ballbag also incorporates a mechanism, which allows you to attach several Ballbags together for the added convenience of carrying multiple balls securely without any distraction.

What I love about this product is its sincerity. I was just like Doug on my “stingray” bicycle peddling to and from school to shoot hoops. About half the time I dropped my ball or my drink (sometimes both). The BALLBAG was based on a real need for real people who could not get what they wanted from the market. Doug Rugg delivered the solution and he is reaping the rewards of being a niche market super star.

Check it out at http://www.ballbag.com/

John Bradley Jackson
© Copyright 2006 All rights reserved.
Please visit my website at www.firstbestordifferent.com