Target markets are pools of buyers who are most likely to purchase your product or services. Most of your competitors have identified the same target markets as you, so everyone is fishing in the same pond.
Why not create your own pond to fish in? You can do that by identifying βstrategic niche markets.β Instead of only segmenting clients by geographic and demographic factors, start segmenting them by their interests, hobbies and passions. You could even consider life-changing events that cause a need for your service and other related services they need.
For example: Most financial planners target affluent clientele who live in Tucson. They may segment clients by area of town, their income levels or by the value of their homes. In any of these target markets, there is a lot of competition.
One good strategic niche market might be βaffluent clientele who live in Tucson and love to golf.β People who love to golf probably live in golf communities. It would be easy to get the names and addresses of every homeowner who lives in a luxurious golf community. A postcard might be designed to say βWhen was the last time you took a world-class golf vacation because your portfolio performed so well? Call me, I work exclusively with clients who love to golf.β
Another good niche market might be βaffluent clientele who are getting a divorce.β In this case the strategic niche market is not the customer, it is the divorce attorney. It is easy to generate a list of those attorneys. The message might be βI work exclusively with family attorneys whose clients need world-class financial advice during this transition in their lives. Can we work together?β
Every business has many potential strategic niche markets. There is a lot less competition here, and when you connect with people because of their passions or personal challenges, you will convert more business.
