In the book Positioning: The Battle for Your Mind, authors Al Ries and Jack Trout explain the “positioning theory.” The idea is that a customer can’t hold two opposing views of you at once. For example, if your prices are low, they won’t believe you can also be good. Likewise, they won’t think you understand their local community if you have locations everywhere.
This fact means that instead of trying to be everything, owning a niche market and choosing a smaller selection of selling points to emphasize to your customers is more important. When you try to do too much, there’s no guarantee that the message they will come away with is what you intended. If you try to serve everyone, you sacrifice what makes you unique.
It might seem counterintuitive to own a niche market rather than target as many people as possible, but it’s ultimately worth it. Here are some reasons to opt for a niche market strategy:
The good news is if you are considering casting a wide net, chances are your competitors are, too. They might take the bait, but you now know better. If you own a niche market, you’ll be in a much better position to develop a solid reputation and a loyal customer base.
If you need to decide whether your business should serve a universal audience or if you should own a niche market, fill out my contact form. I can tell you real-life stories about the shuttered businesses that tried to be everything to everyone.
Coach Dave
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