Re-Evaluate Your Market Niche
Due to the tough current economic times, there are businesses going into bankruptcy everywhere. In a time of prosperity, people rush to buy the latest electronic gadget or to get the latest accessories, sometimes even one for each change of season. So, even though your market niche may have done well when the economy was good, you may have noticed a decrease in sales. What’s going on? Don’t assume that this is a product of the economic recession; instead, be proactive and try to determine what factors are affecting your sales. It could be the economy, but it could also be various other factors: A shifting demographic, sales strategies that don’t necessarily work in a downturn, or an ineffective advertising campaign.
Shifting Demographics
When you set up your business, you probably had a good idea of what demographic you wanted to serve. With the recession, the demographic you serve may have had shifts in their income level or even living situations. Take a look at the boomer generation. They are experiencing an epic shift in their income as they retire, with battered retirement accounts from poor market results. Even though you could rely on this demographic to purchase certain products and services as they continued to dominate the market, this may not be true in the future. So, you need to re-evaluate the demographics that you are serving in your market niche.
Sales Strategies
Running the same promotions with worse results? That’s not really surprising considering that the psychology of the marketplace has changed dramatically and that the consumer may not be in a buying mood for a while. Before the recession, status was a great psychological trigger to use to create a buying opportunity. The same trigger is somewhat meaningless in a downturn unless you are marketing to the very rich. The biggest strategy for the downturn is going to be value offers; you need to make sure that many of your strategies reflect a trigger for value.
Ineffective Advertising Campaigns
The immediate impulse of business owners in a downturn is to stop throwing money at advertising since there are fewer buyers. This is a mistake and can be a self-fulfilling prophecy for poor sales later on. So, if you haven’t evaluated your advertising campaign, you need to do that now. Look at where you are advertising, what psychological triggers and sales strategies you are using, and whether you can provide value offers that put you ahead of the competition during this tough economy.
For one-on-one consulting, marketing tools, and marketing solutions all designed to help your business get through these tough times, make sure to check out exclusive memberships to the Logic Path marketing club.
[...] This post was mentioned on Twitter by Warren Miller and Warren Miller, Jacob Lazer. Jacob Lazer said: Re-Evaluate Your Market Niche | http://lazerpromotions.com/blog/general/re-evaluate-your-market-niche [...]
Pingback by Tweets that mention Re-Evaluate Your Market Niche | -- Topsy.com — January 14, 2010
[...] Re-Evaluate Your Market Niche (lazerpromotions.com) [...]
Pingback by Fixed media based pricing #fails, Market Knowledge Systems will be our answer » Victus Spiritus — January 24, 2010
[...] Re-Evaluate Your Market Niche (lazerpromotions.com) [...]
Pingback by TOP INTERNET MARKETING, ONLINE EDUCATION AND TRAINING SYSTEM | Online Education — January 26, 2010
Excellent article. I agree if your internet sales are down, that is a great time to re-evaluate your niche market. You very likely need to make changes in your niche market selection.
One of the most important factors in achieving success in internet marketing is to stand out in a crowd. As you say, trying to promote your product or service to the masses is a big mistake.
It is sometimes difficult to narrow down the market you are targeting. But by identifying a more narrowly defined market, you can more easily learn about that market. You can learn what questions are not being answered. You can identify specific needs that are not being filled.
If your marketing campaign is based on education and answering the questions that the people in your market are asking, you can build up a relationship of trust with them. Thanks for the article.
Comment by Scott Hubbard — February 21, 2010
[...] in order to be successful with SEO, which in turn is the basis for driving traffic to a site. …Re-Evaluate Your Market Niche |If your market niche was doing well when the economy was good but now you've seen a recent decrease [...]
Pingback by narrow niche — April 1, 2010