What is the smarter strategy: Go after an easier market with average but achievable profits, or target a harder-to-reach market offering higher profits but bigger barriers and a longer road to success?
(We’ll come back to that at the end.)
Do your market research
Just when youthought lead generation was as simple as “making a few calls”, it’s worth stepping back and looking at the conditions of the market you are trying to enter.
Ask yourself:
- Market size and growth and speed of growth
- Main competitors and how they operate
- Pricing models and business models
- Strengths and weaknesses of current offerings
- Barriers to entry including compliance and regulation restrictions.
- Technology and innovation in the sector
- Are there barriers to entry such as regulation, capital investment or strong brand loyalty?
- Is the market overcrowded and already well served?
- Buying behaviour – literally what drives buying decisions
- Is what you offer perceived as a commodity?
- Are customers comfortable with their existing suppliers?
- How easy is it to reach decision-makers?
However great your product or service is, most businesses are looking out onto a saturated market where their carefully crafted solution is just one of many similar offerings.
There is success to be had, but if you don’t want to compete on price alone, you have to put some work in.
What you will often find is this:
- Prospects are comfortable and not actively looking to change.
- A direct approach with the same offering as everyone else just bounces off the entry barrier with the dreaded response: No thanks, we’re all sorted with that.
A “whatever it takes” hard-sell approach risks damaging reputation, devaluing your offer and making it difficult to ever become a trusted advisor.
Find the gap
Look for what competitors are not doing. Opportunities in crowded markets are nearly always found in the gaps where the market leaders are not seeing. Look closely at the small things your company does well. For example, if you offer a very human service in a very automated industry, that might be more valuable than you think. Small differences can become powerful conversation starters. It just might get their interest and they might just test you out next time their current supplier frustrates them.
Still think that this crowded market is worth a go?
A direct attack is futile unless you have lots more ammunition (usually costing £££s) than the competition and a mountain of magic momentum behind you (reputation, already established in this market or something close to it).
What are you to do?
You have to put some work in to not be one of many, you are looking for a bit of land to claim as yours. How can you attack at the weaker points (and if there are a few to link together all the better) and carve out a foothold that competitors already in the space will find difficult to respond to or choose to ignore?
How many weaker points can you address? To do this:
- Consider a more consultative approach and put together a winning combination.
- Make the most of your strengths to create added value that matters to the prospect and which sets you apart from your competitors
- Find your difference – clearly define what sets your offer apart from competitors. This could be based on quality, price, features, customer service, or a mix.
- Consider the power of niches and specialism to appeal to a smaller selection of customers within the broader market. Tailor your offerings to meet the specific needs of these groups.
- Create a unique solution that disrupts what is already on offer – look at both your product and the narrative. Look at how you can start to offer value and education to position you as a go to expert.
- Deliver amazing customer service to maximise delight, referral and word of mouth recommendations.
- Develop high-quality content that educates, entertains, or solves problems for your audience. Your aim is to get established .and remembered.
- Build a strong voice and identity by being clear on your core messages and finding different ways to share that message. Show rather than tell by using testimonials, reviews and case studies to build that all important know, like and trust and demonstrate your value.
- How can people demo/trial/experience what you offer – this might be demo, webinar, in person event. What is the best lead magnet you can put in your world to get them to put some skin in the game and get them into a conversation.
- Are there any opportunities for partnerships, alliances, joint marketing or events with other companies already in the field?
- Be innovative and creative as you get traction introduce new products that compliment your existing offerings to further service your niche and attract a broader audience.
- One of anything never worked – be consistent, tenacious, creative and human in pursuit of penetrating your identified market.
- Have some fun with it and be patient, keep going at it.
Marketing to a highly saturated and well-served market is challenging, but with the right strategies, you can carve out a niche and attract customers. If you are struggling with your approach to your targeted market, let’s have a chat.
The answer to my initial question:
The research you put in will help you answer this question for your unique circumstances and whether you need quick wins or see it as a long-term project. The larger profits are always going to be attractive; put the work in set your world up to talk to your target market, consistently and relevantly pursue the market, be confident and patient, curious and don’t give up. There is every chance you can win big.
Many successful companies do both: They build stability and cash flow in easier markets, while patiently working to break into harder, higher-value markets over time.
But remember unless you have the investment of say Red Bull when they launched into the soft drinks market you don’t win markets by trying to take the market head on you need to find a gap or approach to capture a sector.