Frustrated that your prospects can’t tell you apart from your competitors?
If you’re like most entrepreneurs, you’re fighting your way through a saturated market crowded with lots of competitors.
It’s hard to stand out from the crowd and grow any business in a saturated marketplace.
The biggest mistake entrepreneurs make is trying to target everyone for growing their businesses. By becoming a niche specialist, you can expect to be paid generously for solving a specific problem for your target market. You can deliver a solution that serves your customers better than anyone else. So, you can “wow” them.
What makes matters worse?
In a crowded marketplace, many businesses are selling similar products and services indistinguishable from competitors. They lack differentiation.
This is a big problem for prospects looking for good dentists, surgeons, veterinarians, chiropractors, lawyers, accountants, mechanics, plumbers and other service-based businesses. They’re offering virtually interchangeable services… just like their competitors.
It’s the same problem for prospects trying to buy products… and they have overwhelming choices with almost identical features. It doesn’t matter if they’re shopping at Amazon, Walmart, Target or any other store.. they have too many choices of the same things.
If your prospects want to choose your products or services among many choices, how can they do it when they can’t tell them apart?
In a Crowded Market? Why It’s Necessary to Avoid Becoming a Commodity and a Race to the Bottom
Staying ahead of the competition is harder… if you’re considered a commodity.
A product or service becomes a commodity when lots of other companies are offering something similar. As a result, it loses its competitive advantage.
When similar products or services become widely available, companies usually lower their prices as competition increases.
When businesses compete by lowering their prices, it creates a downward pressure for competitors in the same category. This is called a race to the bottom and the company that “wins” it… loses big.
So, reducing your prices is not the solution…
To stay ahead of the competition, you need to stand out from the crowd…
How Do You Stand Out From the Crowd and Dominate Your Target Market? By Becoming a Niche Specialist
The biggest mistake entrepreneurs make is trying to target everyone for growing their businesses…
When you’re trying to be all things to all people, you’re not targeting anyone. You’re not going to be relevant to specific market segments. So, you’re more likely to be ignored.
By targeting a broad market, you’re positioning your products or services as generic. Instead of positioning your business as unique or special, you’ll end up becoming a commodity competing on price.
If you try to target everyone, your business is guaranteed to fail.
If you’re like most small business owners, you probably don’t have unlimited financial resources that allow you to target a broad market. So, if you don’t stop targeting everyone… you can end up running out of money without accomplishing anything.
It’s a losing battle because it’s impossible to serve and please everyone.
Here’s a better way…
You need to focus on a narrow target market, called a niche.
By focusing on a tightly defined segment of your target market and serving a niche, you become a specialist instead of a generalist.
There are competitive advantages for your business targeting a narrow market and becoming a niche specialist. For example…
If you had a heart attack, wouldn’t you prefer to be treated by a heart specialist instead of a regular doctor or general practitioner?
Of course, you would prefer to get a specialist… and you would expect your specialist to charge a lot more than a generalist.
By becoming a niche specialist, you can also expect to be paid generously for solving a specific problem for your target market. You can deliver a solution that serves your customers better than anyone else. So, you can “wow” them.
A niche specialist is sought after and paid a premium… instead of being chosen based on discounted pricing.
By targeting a niche, you can be a big fish in a small pond. This allows you to dominate a segment of your target market.
Once you dominate one niche, you can expand your business by targeting and then dominating another niche.
Here’s what you need to know…
When you’re targeting a niche, it doesn’t mean that you can’t offer multiple products or services. It just means that you need to create a separate marketing campaign for each niche.
4 Competitive Advantages of Targeting a Niche Market and Becoming a Specialist
- When you’re solving a specific problem for your niche, you can deliver a solution that serves them better than anyone else.
- You can charge more for a solution that serves them better than anyone else.
- You’re more likely to enjoy a higher conversion rate for your campaigns. Why? Instead of being ignored, your advertising will be more relevant to your niche. So, you can get more sales and profits.
- You can lower your marketing cost by targeting a narrow segment of your market. In contrast, targeting a broad market can be very costly.
Targeting a broad market by mass marketing or branding is typically done by big brands because small businesses can’t afford it.
Targeting a broad market can cost millions of dollars a month. In contrast, marketing focused on a narrow target market can be done for as little as $5 a day.