When you have multiple choices on how your product/service can be used , the lesser the chance of you being able to dominate the market. Its like when my wife went to a food store in Toronto, she was overwhelmed with the number of choices for just cornflakes from just one brand. She couldn’t make a decision and she came back without buying anything. Sometimes less choices help the customer.
When you try to target multiple markets – which is different types of customers – at the same time, your messaging becomes blurred. Its like saying I sell condos, farmhouses and also industrial plots. This way you cannot be considered an expert on anything. If you are not considered an expert or a specialist, you are A Commodity. The only way to differentiate a commodity would be price.
So if you do have multiple choices to target a given market – go after them one by one. Segment the market into as fine a piece as possible. Dominate one segment and move to the other but be seen as an expert in each.
Companies like P&G, Unilever etc do this best. They have soaps which are targeted for white clothes and then they have variants within this. Then they have soaps for specialising in stain removal and they create variants within that.
If these multi-billion dollar organsiations who have so many choices of going to the market, still choose one market at a time, then for small companies its absolutely imperative that you only choose a single market first and then move into other categories.
Till next time.