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Niche and Target Market Defined

There are different definitions of niche and target market, and sometimes the terms are used interchangeably. Here is a good working definition of target market and niche.

A target market is the group of people most likely to buy your product or service. They are the people to whom your product is being marketed

A niche adds another dimension. A niche combines your target market with what you are helping them with. 

target market (who)

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the problem you are solving/need you are fulfilling (what)

For instance, if you are a business coach, your target market might be writers, while your niche could be writers who need to learn how to promote an ebook.

The key to understanding niche marketing is realizing that people don’t buy a service or product, they buy a solution. That solution can help them solve a problem or achieve a goal. When you become the solution provider for your target market, you are a winner.

Focus on the Solution

There are different ways you can identify your target market. You can use demographics (such as age, gender, education, income), or psychographics (e.g. lifestyle, values, psychological make-up). I would encourage you to think about your target market as a group of people who share similar challenges and goals. 

Think of it this way. Say you are a coach and you are trying to sell your coaching services. Most people don’t really understand what coaching is, nor do they have to. They just need to know what problem you solve. Maybe you help them lose weight, or have healthier relationships, or a deeper spiritual existence. They don’t really care how you do it, they just want to know what results you will help them achieve.

The same is true for network marketers. People aren’t interested in your opportunity or product, they just want a solution to their problem. Suppose you work with a health company and your target market is working mothers with school-age children. What is the biggest problem your target market faces?  One of their biggest problems is not having enough energy to get through their day. Your nutritional supplement can help them meet that need. Another of their biggest problems is the lack of a more flexible work schedule to allow them to spend more time with their families. Having a work from home business can help them meet that need.

Whether you approach things from a business or a product standpoint, you always have to first think about your target market’s needs, and come from the place of being a solutions provider.

Learn how to identify and attract your unique target market. Get a copy of my free report "Ten Steps to Finding and Attracting Your Ideal Niche".

Target Market Research

• Speak with members of your target market, including existing customers. Look at the requests people make, the questions they ask, and their complaints.

 
2. Public Information

• Visit online groups, blogs and forums that are geared to your target market. People tend to tell total strangers things that they wouldn't otherwise say.

Do you know the difference between marketing and sales?

Do you know the one key to being successful at both?

If not, then read on...

There are many definitions of marketing, but the one I like best is by Ann Sieg, author of Attraction Marketer's Manifesto, The 7 Great Lies of Network Marketing and The Renegade Network Marketer.

Ann Sieg says marketing is is what you do to attract qualified prospects, and sales is what you do to close the deal and build relationships with people.

In other words, the definition of marketing is everything you do to reach and persuade prospects to give you a chance to sell them. Sales is what you do to close the sale and get a signed agreement or contract.

If you think about it, the sales person would have no one to sell to if it weren't for the marketer.

If you are doing business online, it is the same idea.

The marketer's job is to drive people (or traffic) to the website. Once there, you want them to take an action -- maybe fill out a form requesting more information, subscribe to your mailing list, or buy a product. 

The sales person is the one who forms a relationship with the prospects and closes the deal. You might have their contact information such as a phone number so you can personally call them and follow up. You might have their physical mailing address so you can send them a personal card. Or you might just have their email address, in which case you want to send them compelling and information-packed emails.

Of course, if it is your own business, you are probably wearing both hats -- you are both the salesperson and the marketer.

So what is the key to being good at both marketing and sales?

Good marketers and sales people have one thing in common: they both begin by putting their prospects first. In fact, they take it one step further and really get into the hearts and minds of their customers.

For any marketing or sales message to be compelling, it must go beyond the rational, logical thinking and strike the right emotional chord.

Typically, far too much emphasis is put on the product, and far too little on the person doing the buying. What are their hot buttons, their core emotional desires?
 

 Keep two important principles in mind:

1. People buy with their emotions and justify with logic.
2. People rarely buy because of features. They mostly buy because of benefits. 

So before you start rattling off a bunch of facts or features, ask yourself, "so what?" Put yourself in their shoes. What does it mean to them specifically and how will it benefit them?

How will this knowledge benefit you? It won't unless you learn from it and apply it. Learn how to identify and attract your ideal niche. Get your free copy of my report, "Ten Steps to finding and Attracting Your Ideal Niche".

To your success!

When you first get started in attraction marketing, it can be overwhelming. It's really important to start with just one or two key areas of marketing on which you can focus. Choose those areas based on your interests, skills, personality and budget. Below is a very brief video that shows you five types of marketing and helps you evaluate which areas are best for you.

p.s If you’re interested in learning more about setting up your own marketing funnel with a customised plan based around your personal interests and skills, then register for a free account with Renegade University where you’ll be able to learn more about this type of attraction marketing.

After you have learned attraction marketing techniques and attracted qualified prospects to you, what do you do with your potential customer or business partner?

The answer is the consultative approach, an approach heralded by such leaders as Michael Oliver and Ann Sieg.

The consultative approach revolves around the concept of creating meaningful dialogue with people, to uncover their needs. In doing so, you create long term and mutually profitable relationships.

So rather than simply trying to push your needs onto people, your goal is to understand what someone really wants. You only introduce your business opportunity/product/service as potential solutions after a process of discovery and only if there is a good FIT for the other person.

It’s a mindset thing - it’s about changing your thinking. You have to let go of the outcome and resist the temptation to present your solution before you really understand what the problem is, and whether or not your solution is the best one for that individual. You have to learn how to keep your own agenda out of the picture.

Perhaps the greatest gift you can offer someone is to really listen to them and show that you care about their needs. If you embrace this concept, you will not only help someone, but your business will become more meaningful to you as well.

Michael Oliver, who coined the term "Natural Selling",  teaches us a framework forMichael Oliver the consultative approach and he advises all network marketers to memorize it. He calls it his Natural Selling Conversation Framework. Of course, conversations are rarely this linear and you will learn to tailor this approach to fit the person, based on what he or she says.

Natural Selling Conversation Framework by Michael Oliver

1. Connecting Stage   

Use Connecting Questions --  Demonstrates your intent. Puts the focus on the other person.
State how what you do helps others. Problem--solution--question to get other to talk.

2. Discovering Stage

Use Background Questions  -- Finds the present situation--the basic facts.

"Before I get into what I've got, let me ask you a few questions so that we can talk about you and what you're looking for."

"What is your present situation?""How did you get to this point [where you are now]?"

Needs Awareness/Development Questions -- Explores needs/problems, if any. What your customer wants.  Explores circumstances causing the needs. Why your customer wants it. Reveals the features, advantages, and benefits to solving the problem.

"So, what drew you into this type of work?" "Do you enjoy your work?"
"Do you like what you do?/What you have?" etc. "What do you like about . . . ?
"What would you change about your job if you could?" "Why would you change that?"
"Is that important to you?"
"What do you mean when you say ______?"
"How does that make you feel not to have [what you just said you wanted]?"

Consequence Questions-- Expands on the problem. Makes the need more urgent. Explores consequences of making a wrong decision.

"What if you didn't do anything and the situation got worse?"
"How would you feel if you weren't able to _____?"

Solution Questions-- Involves your customer and his or her ideas. Reveals and strengthens the benefits of solving the problem.

"What have you done [OR would you do] about changing your present situation?"

Qualifying Questions -- Confirms whether the other person is ready to take action.

"How important is that to you?" "Why is that important to you?"
"I sense that you're not too sure; how do you see it?"
"How would you feel if you could _____?"
"Are you prepared to change your present situation to get what you want?"
"Does that work for you?" "Is that what you're looking for?"
"Would you do whatever it takes to get you the things that you want?"

3. Transitioning Stage -- Opens the door to presenting your solution.

Transition Questions

"Well, based on what you've told me, I'm doing something that might be what you're looking for. If you're interested, I would be happy to share it with you."

4. Presenting Stage -- Summary and Agreement.  Confirms the correct solution. Presents the specific features, advantages, and benefits of the solution that solve solve the problem and satisfy the customer.

"You said _____, and it's making you feel ____. Well, what I do is _____. What this means to you is that you can do the same thing. You can ____ [advantages--logical side of problem], which will allow you to _____ [benefits that will satisfy personal side]. Does that feel as if it might take care of what you want?"

5. Committing Stage -- Helps other person to commit or take the next steps.

Commitment Questions

"I'd like to suggest as the next step _____. What would be most appropriate for you? Do you see the value in all of this for you?" [Check for agreement. Keep making suggestions. Follow up!] "I'll call you at 7:00 p.m. next Tuesday. You'll have listened to the tape I'll send you, and we can discuss specific aspects of it."

Learn how you can succeed with attraction marketing, with step-by-step training and support.

Attraction marketing is the new way of building a business online. It involves providing information that is valuable for your target market so that they approach you. While attraction marketing is great for building a business online, the same principles can be applied offline as well.

Network marketing is just one example of how attraction marketing works in both the online and offline worlds.

Anyone who has worked in network marketing has probably been through the drill of preparing a contact list of their friends and family.I was never really comfortable approaching people and mixing business with friendship. I was able to do it because I was truly passionate about my company's products and believed they should be in everyone's home.

But, even if you are a natural born salesperson, relying on friends and family to build a business is far too limiting. It might get you a few enrollments but it is unlikely to help you grow a serious business.

Working cold leads can be equally limiting, and far more expensive. These are people who fill out a survey and say they want to earn income from home, but do they really have the desire and determination to start a home busines? Furthermore, they tend to be very skeptical given all the scams that are out there.

A much more effective approach is to build your business using attraction marketing techniques. With attraction marketing you attract people to you rather than chase after them. You do this by providing information that is valuable to your target market. To learn more about attraction marketing, you will want to read Ann Sieg's free report, Attraction Marketer's Manifesto.

Attraction marketing is mainly done online. The internet is a great vehicle for sharing information -- whether it be a blog, website, article, video, etc.. When people want to find information and solutions, the Internet is where they turn.

But attraction marketing also works well for your warm market, if you know how to do it.

So how do you incorporate warm market into an attraction marketing-based network marketing business?

1. Targeted Approach

There is nothing wrong with you introducing your business or product to your warm market, if they want the information.

Smart marketing is not about convincing people that they need your product or service. It is about identifying a target market who have an interest in the types of products or opportunity you have to offer.

Unfortunately, most network marketers are taught that everyone wants their products and that is simply not true. When you practice this kind of "non-targeted" marketing, you not only limit your chances of success, you reinforce the negative image many people associate with network marketing.

2. Be Yourself

When talking to your warm market, just have a conversation. Don't pitch them or sell them. If they are genuinely interested in what you are doing whether as a customer or for the business opportunity, they will ask questions and express an interest in learning more.

3. Leverage Social Media

Social media sites allow you to connect with friends you already know as well as make new friends, thereby expanding your warm market. Whether you meet people face to face or online, your focus should be on building relationships and a sincere desire to help and support others.

For instance, Facebook is one of the fastest growing social media sites. You can search for friends and people you've lost touch with including old co-workers, your graduating class, relatives, etc. You can also search for groups you might be interested in joining as well as people with common interests.

You'll soon find that your friends list grows. Friends of friends will add you, and even people you don't even know will add you. All of these people are now part of your extended warm market.

So how do you share information with your friends? Start by setting up a profile page that explains what you do. You can include a website that relates to your business (check out this article about the proper use of replicated websites - this is so important). Post updates about what you are doing that might relate to your business activity, but be subtle. For instance, you might say "I just listened to a great webinar about creating financial freedom in the current economy".

You'll find that people will ask you what you do. When they ask...share with them what you do. But don't try to push your products or opportunity on them. The ones who are interested will ask you for more information.

4. Share Affiliate Marketing Programs with Warm Market

Chances are you know other entrepreneurs. They might be network marketers, coaches, realtors, mortgage brokers, consultants, or salespeople. Every business has to be online these days, but most people have no idea how to go about building an online presence. That is where you come in.

If you've done things right, then you are using various tools and resources to create your online presence. Hostgator (web hosting), GoDaddy (domain names) and Aweber (autoresponder) are just a few examples.

You will also be working with an internet marketing training program like Renegade Professional or The 90 Day Marketer.

All of these are essential tools for building your business, and they are also affiliate marketing programs. That means when you refer someone to one of these programs, the company will pay you a commission.

You can share these programs with people in your warm market in addition to those you meet online. Think of all the people you've met through your networking groups, friends, and even people in your own network marketing company. I can assure you that they will greatly appreciate you sharing this valuable information with them. And you're not trying to get them to join your opportunity. Instead, you're sharing information that can help them build their business.

Your Next Steps

Don't let yourself be trapped into a limited mindset of only building your business one way. Warm market methods can be effective, especially when you use an attraction marketing mindset.

To really take things to the next level for your business, learn about attraction marketing and how to leverage the Internet to attract people to you online.

Ann Sieg's free new ebook, Attraction Marketer's Manifesto, has a lot of people thinking about ways they can differentiate themselves. You've heard the saying "Differentiate or Die". In today's highly competitive world, whether it be offline or online, you have to be unique and fill a specific niche to be successful.

What is it that makes you unique and valuable? The best way to answer that question is to identify your USP, or Unique Selling Proposition.

What is a USP?

Your USP is a sentence or phrase that explains what sets you apart and makes you special. It is the soul of your business, and is what distinguishes you from your competitors. It is the answer you give when a potential client asks "Why should I buy from you?"

What are the benefits of developing a powerful Unique Selling Proposition?

• It gives your prospects a reason to do business with you rather than your competitors.
• It can help make your marketing much more effective
• It gives you the focus you need to dominate a market niche.

How do you develop a Unique Selling Proposition?

When developing your USP, put yourself in your prospects’ position. What is important to your potential customer and what would be a compelling reason for them to buy from you instead of your competition?

To help you do this, get a paper and pencil and answer these questions:

1. What benefits does your product or service offer? (keep in mind that benefits are all about how the product adds value for customers. This is different than features which describe the product. For instance, a money-back guarantee is a feature, and the corresponding benefit is that the customer doesn't take on any financial risk when buying your product).
2. How does your product or service help solve your target market's problem?
3. How do your benefits outweigh what the competition offers? Which benefits are the most difficult for your competitors to imitate?
4. Which benefits are the most important to your customers. These are the ones you should focus on in your USP.
5. What are the greatest challenges your target market is experiencing and which of their needs are unfulfilled? What voids or typical complaints do clients have about businesses in your industry or service area? List as many as you can, aiming for a minimum of 10.
6. What would be a client’s perfect product or service in your industry?
7. Write a draft paragraph describing your USP, including the the client’s problem you are solving, your unique solution and the benefit the client will receive.
8. Look at two or three of your competitors. Write a sentence that describes their USP, i.e. their unique offering. How does it differ from yours?
9. Ask some of your clients what they like best about your business solutions? What words do they use to describe the benefits they achieve from your business?
10. Think outside the box and look at other industries. Are there innovations in other industries that you could apply to your business?
11. Now rewrite your USP. Make sure you use clear, powerful language. Make each word count. Write this in paragraph form and also in a shorter one sentence version that can be easily repeated.
12. Once you have developed your USP and are happy with it, incorporate it in all your marketing material, both offline and online.

Keep in mind that you can’t be all things to all people. In fact, you don't want to. The best thing is find a niche or a segment of the market that you can thrive in because of the unique benefits you offer. Remember, focus is power!

What does a good USP look like?

The ultimate goal of your USP is to have people say... "Oh yeah, I've heard of you. You're the one who..." - And then respond by requesting more information or making a purchase.

A good USP should be:

• Only one sentence (although you can get away with two).
• Clearly written so that it is easily understood
• Focused on benefits that are unique to your company or product.

   

Here are some examples of powerful USP's:

"When it absolutely, positively has to be there overnight"  (Federal Express)

"Fresh, hot pizza delivered in 30 minutes or it's free" (Dominos Pizza)

"The nightime, coughing, achy, sniffling, stuffy head, fever, so you can rest medecine" (Nyquil)

Identifying your USP is part of the essential foundation for your business success, and a critical part of your niche marketing strategy. Get my free report "Ten Steps to Finding and Attracting Your Ideal Niche".