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Sweet marketing music

Tanner Montague came to town from Seattle having never owned his own music venue before. He’s a musician himself, so he has a pretty good sense of good music, but he also wandered into a crowded music scene filled with concert venues large and small.But the owner of Green Room thinks he found a void in the market. It’s lacking, he says, in places serving between 200 and 500 people, a sweet spot he thinks could be a draw for both some national acts not quite big enough yet for arena gigs and local acts looking for a launching pad.“I felt that size would do well in the city to offer more options,” he says. “My goal was to A, bring another option for national acts but then, B, have a great spot for local bands to start.”Right or wrong, something seems to be working, he says. He’s got a full calendar of concerts booked out several months. How did he, as a newcomer to the market in an industry filled with competition, get the attention of the local concertgoer?

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by James Ford
February - March 2012

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Law

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Why ‘everyone’ is not a viable customer base

Although this viewpoint may be the extreme, it’s not the exception. As all companies are challenged to do more with less it becomes even more important for companies to focus their marketing resources on specific niches and target markets. Although this seems intuitive, many companies are doing exactly the opposite in an effort to gain additional clients. Their (flawed) logic seems to be to sell everything to everyone and hope for the best.

So, how does a company go about determining which niches may be profitable to develop or expand? And, assuming that can be accomplished, how does a company achieve success in its chosen niche(s)?

Steps for Achieving Success in Your Companies Niches:

1. Research the marketplace.

The research phase should include both secondary research – reviewing market reports, analyzing information, conducting Internet searches, and primary research – talking directly with people involved in the industry.

By making personal connections, companies will not only gain greater insight into a potential target market, but they will also establish connections with people they may work with in the future. It is my experience that people rarely turn down the opportunity to talk with others about their industry and their business and that one can learn a significant amount about the market through such research.

Two words of caution: First, make sure you are not selling anything during your research. There is no quicker way to ruin your credibility than to use a research opportunity as a sales opportunity. Second, research requires patience. Allow sufficient time and data/information gathering to really learn before proceeding.

2. Analyze and prioritize needs.

After conducting both primary and secondary research, companies will have a greater understanding of the potential target market’s needs and challenges. Review what the market needs and is willing to buy. Prioritize those needs. Determine how well your company is able to fill those needs.

During this analysis, you may find your company does not currently have the expertise to fill a potential niche’s specific needs. Many companies stop their review of potential target markets at this stage. However, if the market research indicates this can be a viable niche, don’t stop!

Companies can look at ways to serve that niche, including breaking the niche down into sub-niches, developing products designed to fill specific needs or hiring people with unique skills to better serve the niche. Any of these may require diverting resources from other areas of the company, but doing so may prove worthwhile.

3. Review current clients.

Does the company have a strong presence in this target market already? A “no” answer doesn’t mean the target market shouldn’t be pursued; it just means it may take longer, or be more challenging, to produce your desired results.

Once again, if the research indicates the target market is a viable opportunity for the company, it may well be worth pursuing. Assuming that companies do have some clients currently in the target market, the following tactics can be used to grow the company’s presence:

• Client referrals. There is nothing more powerful than a company leader making a referral to one of their peers.

• Testimonials. If clients are willing to provide testimonials that can be used in marketing materials, ad campaigns or proposals, take them up on this. Once again, testimonials provide validity to a company’s efforts to grow and expand their target market.

• Case studies. Using case studies to illustrate how a company has helped its clients address challenges provides additional validation to the market.

4. Analyze the competition.

This phase often starts with an understanding of the competitors in a target market and the strengths and weaknesses they bring to the market. Much of this information can be learned in the research phase.

Another word of caution: companies think they understand the strengths and weaknesses of their competitors and therefore, many skip this step. Often, companies are too close to their competitors and need the assistance of someone who is objective to gain a better understanding and analysis.

5. Is there passion?

Yes, you heard/read me correctly – passion is all-important. If, after conducting all the appropriate research, a company is truly excited about the opportunity to serve a specific market niche, that passion can be tapped to help grow the niche. The passion is transferrable to others in the company and the momentum for the niche grows.

As an example, I have worked with construction companies throughout my career and have enjoyed the work. Several years ago, we made the decision to narrow our focus in the construction industry to family-owned construction companies. This is a market niche I am truly excited about, which shows in how we serve our current clients and in our efforts to grow the niche.

Once a company has determined the target markets to pursue, the next step is to develop the strategies, goals and tactics needed to grow the niche. Once developed, companies will benefit from taking the following additional steps:

•Develop metrics tied to the strategies, goals and tactics. Review these metrics regularly and create a “dashboard” that provides an overview of progress to date.

•Engage other company members by communicating the goals and strategies. Let them work on the appropriate tactics so they are committed to achieving the goals.

•Make the research phase ongoing. Continue talking with others in the industry; consider joining an industry organization and regularly keep up-to-date on industry happenings.

•Constantly ask what you can be doing differently to grow your target market. By regularly reviewing what has worked and what has not, companies create a culture of continuous improvement.

•If your target market is one where it would be beneficial to “give back” to the industry, do it. Get involved in an industry-related charity or do something to help the companies that are part of your niche. Companies can do well by doing good.

With all due respect to my business owner friend’s strategy, companies that define and develop a specific niche will be the ones that succeed long term. Establishing a leadership position in specific niches will help companies to achieve their goals.

James Ford,
EideBailly:
612.253.6524
jford@eidebailly.com
www.eidebailly.com