Once you have chosen a Single Target Market to focus on, you need to find ways of addressing that market.
In any market there will be a spectrum of customers- At one end you will have people who are reactive, they are in pain and they need a solution now. At the other end of the spectrum you will have people who are progressive and proactive and want to take measures before a problem occurs. And in between are people at various degrees between getting into pain and getting to become progressive after observing something.
Generally its a good idea to target the people who are in pain first, because they can give an order immediately. Immediately is a relative term – depending on the sales cycle of what you are selling. If you were caught in a hurricane or cyclone and your roof has blown away, then you need to get the roof fixed immediately as in yesterday. On the other hand if you are in B2B , immediately could mean a roll out in 3 months.
But how do you identify someone who is in pain in your market. Most people who want an instantaneous answer would always search on Google. So if you can advertise on Google with the exact same terms that the customer would think when in pain, then they could come on top of Google search and get business.
As I had in my post yesterday however, you have got someone to raise their hand by clicking on the link but if you don’t capture their email address, that advertisement will go waste the person visits your website without giving their email. You need to figure out a way to address this.
Similarly for the other end of the spectrum – the progressive or proactive folks. They will also go on Google or in case of B2B, they will ask their subordinates to find out things. Those subordinates will also first go to Google. So what will they those folks think when they have to do some thing proactive in their category. Again put out the paid advertisements with respect to that.
But first focus on the people in pain, because you can get business faster. Once you delight the customer, then you can do even more business with referrals and other things.
Till next time then.
I have written about identifying different niches in the market based on the usage. Today’s post will be a little longer than the usual posts because I will showcase two clear applications with examples.
For example maybe your product or service can be targeted at the replacement market or it could be targeted at the OEM market. if you are a tyre manufacturer you can get specialised by cars, two wheelers, trucks, off road etc.Then you can device another niching strategy based on going to the OEMs who manufacture these products. These manufacturers would buy in bulk. Here you don’t need to advertise in the mass market. You need to be closely aligned with the OEM so that when they design new products, they consider your tyres. This is a B2B play.
On the other hand another strategy could be targeting the replacement market. Now you could have a B2C strategy where you are targeting individuals who need to replace their tyres in their old vehicles. To be able to get mind share you will need to advertise rigorously to ensure that you stay top of the mind when someone needs to replace their tyres. On the other hand you could target fleet owners who have to maintain a large fleet. These would be B2B buyers and the method of targeting them would be completely different.
Today I came across another way to look at the idea of a single target market. Its by identifying the pain and retooling the product slightly or retooling the packaging. A very common example of this is the concept of sachets for shampoos which got pioneered in India by the FMCG companies. About 20 years back there was a company in south India, which made shampoos, which did not have a brand as well known as the Uniilevers or the P&G. They recognised the fact that poor ladies in India wanted to wash their hair (typically long hair) but did not have the budget to buy a big bottle of shampoo. Other than the budget they did not have the place to keep the bottle after taking bath because they would take bath in public washrooms.
They came out with a plastic sachet of the shampoo at a cost of Rupee 1/- (about 2 cents at that time) with just enough shampoo for one wash for the ladies. This suddenly became a rage and the volumes of this company grew dramatically. Soon all the MNCs had to copy the idea and come out with equivalent sachets for their shampoos.
Now while the original plan was for the single target as ladies who could not afford the full bottle, another segment which had pain was travelling salesmen who could not carry a bottle of shampoo with them while they were on tours. A lot of the hotels they stayed in did not provide for shampoos. So this became another market that these companies started targeting.
So you could even see the resistance points to the consumption of your product and find the pain in the market to penetrate another segment.
Till next time then.
Its general human psychology that people avoid pain (fear of) and go for the pleasure / gain. People remember the pain forever or almost forever while they discount the gain. You lose a dollar and your brain will remind you about it for a longtime, but if you earned / won 10 dollars, your brain will discount it by saying it was luck.
This is the same logic why people don’t have a Vitamin C tablet which costs a few cents everyday as a preventive measure but go out and spend thousands of dollars when they get hospitalised. The pain & fear makes them spend the large amounts but the idea of spending a few cents and “gain” the positive of good health.
When you do messaging – whatever kind – an advertisement, a video, a webinar or individual sales – you have to keep these two emotions and their relative importance in the brain , in mind, if you want to get your message to stick to your audience. So while the negative or the message of pain will get more attention, you put too much of negative and it becomes dreary.
In every audience there will be people who are reactive since they are in pain and get your message immediately. On the other end of the spectrum there are people who are proactive and want to ensure that they take care of things before anything can go wrong, they plan in advance. Then there’s a large section of the audience which is sitting in between these two ends. The challenge of your messaging is to take this mass of people to either side of the spectrum so that they buy what you are selling.
Generally its easiest to sell to a person who is in pain or recognises the pain, then the set of people who are proactive. Then you should aim for the audience in-between. In case of B2B if you are selling an ERP software, then the ones whose production is completely messed up on one side, while there’s dead inventory lying on the other side, would be the ideal set of people to target first. The next set of companies to target would be the ones who are thinking in terms of growth and want to ensure that they are ahead of the curve.
Till next time then.