I came across an interesting book last year. A business colleague referred it to me. It’s titled, Marketing Magic by Don Debelak. After owning a consulting business these past 17 years I had to ask myself, “Why haven’t I read this book?”, “Why hasn’t someone told me about it before this?”To give you a quick tour of the book, the author deals with six subjects: Discovering Where the Money Is, Being Better than Everyone Else, Finding Customers, Motivating Customers, Communicating with Customers and Making the Sale. I’d like to focus on Discovering Where the Money Is. In other words, know the market - know your niche.
One of the key ideas discussed in his book is: Finding “Under” Served Customers. Serving those customers who are under-served has been helpful in reshaping my marketing strategy over this past year. There are many ways to segment a market in order to identity those who need service. One can split a market by size, usage, benefits, lifestyles, occupation, predisposition, distribution channels, geography, process, company versus individual, income, social class, personality or family size. Let’s look at a few examples. Geography is an easy way to separate the market. The closer a person comes to the Arkansas River the more likely you are to find whitewater rafting companies. Some electricians and carpenters only like working for builders or large companies. While other trades people prefer to work for individuals. What the author is saying is “Why serve a market that may already be over served? For instance, no small town can use several florists. That market is already saturated so why jump in the water? The product could be great, the price quite reasonable, the customer service superior to none, but if there’s no market there’s no profit and no business.
Another idea he develops is: Determining Possible Products or Services. Let’s say we’re contemplating opening an outdoor shop. Wouldn’t it make sense to put together a short survey to find out what types of gear the people in the area are most likely to buy?
Sometimes people make a purchase based more on preference than price. For instance, many people drink coffee. Some people like buying whole bean coffee and grinding their own brew every morning. Now a person could buy their beans off of a shelf in a supermarket. Others prefer a gourmet coffee shop. The beans at the gourmet shop are priced slightly higher, but the store owner gives their customers the option of sitting and having a cup before deciding which flavor to buy. As you can see, price was not the overriding factor in this decision.
There are many questions that need answering before one can draw any conclusions about the market. Who will want to buy the product or service? What makes them buy? Is it timing? Price? Is it seasonal? At what rate will they return to purchase again? Are they buying out of impulse or necessity? Is it the attention to detail, the superior customer service, the store’s location or proximity to other businesses that make people shop in a particular shop?
By answering these questions a person will know a great deal about the people that walk in a shop’s front door or call on the office phone. Don’t leave the market to chance. Find out what make’s your customers buy and stimulate that desire.
Now you know how to know your market. Don Debelak’s book will be one of those that I read, reread and constantly refer to. Part IV of our series covers “Knowing Your Competition” while Part V deals with “Knowing Your Product or Service.”
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