How to find your Niche Market?

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Here I am going to talk to you about identifying your Market Niche from the Total Available Market.

In my earlier articles, you learned what the right Mind-set required in Sales is. You also learned the importance of knowing every aspects of your product or services. You learned how to prepare FBA chart and become confident about sharing your product or service details to the customers.

In this article, I will explain you how you need to identify who your buyers are. Now you have in general Total Available Market, which means basically the whole world. But let me ask you one question, is it practically possible to approach each and every one in the Total Available Market? Secondly is the whole world going to buy your product? Off course not. So what we have to do is, develop a profile of those types of clients who would most likely than not, buy your product.

The Profile is prepared in three steps

1)     List : First you have to prepare the List of the Suspect, whom you approach and becomes your prospect, who may buy your product. Now here you need to understand one thing- Suspect and Prospect are not same. Suspect becomes Prospect only after you validate it after going through specific tools and techniques which I will explain to you in another article. For now, you just need to prepare the List of Suspects whom you could approach for your product or services. This is the first step in the Profiling of the customer.

2)     Categorize : As List is prepared and I am sure the List will be big. So then, we need to break down the list into Categories. We categorize the list based upon the Market Segment they are into. It is very important to have the focused approach, so we need to categories the list. Now try to understand this, there are basically 3 types of market segment,

a)     B2C-wherein you sell to the consumer, i.e. Business to Consumer. Here all residential or individuals, and freelancers are referred to as consumers.

b)     B2B-wherein you sell to Business or Traders, i.e. Business to Business. Here all commercial businesses and corporates are referred to as Business category.

c)      Hybrid-wherein you sell to the segment which is hybrid, i.e. combination of both B2C and B2B. For eg. Franchisers, Brokers, Property Managers, Consultants, Architects, Contractors, etc.

3)     Prioritize : Once we have categorize the List based upon the market segment, then we need to Prioritize based upon who we are going to go after first, who we are going to go after second and who we are going to go after third. First being the highest probability sale and third being the lowest probability sale.

It is very important to understand that we cannot sell to everyone and so we need to prioritize based upon the highest probabilities of buying your products, so that you increase the productivity and Return On Investment (ROI).. It is found that even after having the good mind-set and best product knowledge and presentation skill, people tend to fail in sales because they are selling to the wrong people. For example, if you are promoting your Non-Veg Restaurant, then talking with Vegan will not bring business to you. You need to identify Non-Vegan Market and then approach them. So from List building to breaking them into Categories and then Prioritizing will bring you to the Niche Market you need to approach.

Let me give you my example here. I am a Business Consultant and helps Businessman to grow their business. I even help Start-ups in establishing their business. I train Sales Team in developing the Sales Skill. Now, who could I sell my Business Consulting and Training Services to? In general, I can sell my services to whole world which is my Total Available Market. But let us start generating and Understanding the profile of my customer. Now as I have to prepare my Client Profile, it starts with preparing my List of Customers who may buy my product. In my list I will have Restaurants, Hotels, Clubs, Freelancers, Company CEO's, General Managers, Team Leaders, Sales Directors, Architects, Real Estate Agents, Builders, Corporate, Small Business Owners, Traders, Distributors, Gym, Banks, and list goes on. Can I sell to everyone? No. I need to be focused to impact my sales. So I need to categorize it based upon the market segment. I have clients in every segment, i.e. B2B, B2C and Hybrid. In B2B my client are all SMEs having employee’s strength of 10 to 500. In B2C all employees in Sales are my customers and in Hybrid, Franchisers, Real Estate Agents, Builders, Architects, CA, are my customers. Now, after categorizing, I need to ask myself a question like where I need to focus and invest my time for better business and ROI. Should I focus on B2B first or B2C or Hybrid. I would basically focus on B2B as B2B will require my both services of Business Consulting as well as Sales Training. Also my experience of Business Growth can give them sustainable growth and ROI. Once I prioritize my Target Profile, it becomes my Niche Market. I then prepare all my marketing material and presentation material to go after that market niche.

I hope you got the clear cut idea about how to prepare your Customer Profile and Market Segment. Now prepare your List of Potential Clients, Categorize them and then prioritize what market niches you are going to go after. All the very best.

Note: Mr. Paresh Bahuguna is the Sales Excellence Coach, Business Consultant and Motivational Speaker. He is writing a Book on "Business Booster" which will soon be available for open market. This article is from his Book.

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