We wrapped up last week with a few thoughts on branding, and specifically the way small business owners should think about branding (hint: it’s NOT like big, nameless, faceless corporations). To see where we ended last week, see the blog post. Today we’re going to start up a new topic, something that every business can use and implement immediately.
Today we’ll start a discussion on riches in niches and subcultures. This, on the surface, can seem rather elementary, but mastering this concept is certainly not, and once you do, you’ll have a big competitive advantage over all your competition.
“When everybody’s your customer, nobody’s your customer.”
America (and most other countries for that matter) are divided into niches and sub-cultures. Simplistically, niches are occupational and vocational. Subcultures are sorted by interest, belief, activity, etc. So, “insurance salespeople” are a niche; “deer hunters” are a subculture. There are life insurance sales people, property/casualty, auto/home, etc. There are deer hunters who only use bow and arrow, only hunt in the Midwest etc. Virtually any product or service can be customized, semi-customized or at least “have a wrapper put on it” to match it to a specific niche or subculture. You may think that’s not necessary because your product or service is useful or beneficial to everybody, including both insurance salespeople and deer hunters, but that misses the key marketing advantage born of human nature: people want, prefer, and place significantly higher value on what is (is perceived to be) specifically and exclusively for them vs. what is generically for everybody.
Here’s a biggie. The movement of a product or service from generic to niche permits price increase, which provides you better profit margins, which in turn affords you more money to reinvest into marketing and advertising and allows you to out-spend your competition in order to get a client. This is a very good position to be in!
That’s it for this post. As we move forward over the next few posts I’ll show you some real world examples from my clients, and other businesses, who are successfully selling to very targeted niches and subcultures. I’ll see you then!