Have you chosen the right market segment?

Once you have a list of between five and 10 viable market segments, it’s time to start getting specific and targeting. Whilst you may have already decided your product or service will fit, it’s in your best interest to identify any untapped needs in the marketplace itself. Ask yourself:

• Is the target segment well funded? — I.e., Do they have the spending power to purchase your product?

• Is the target customer readily accessible to you? I.e., Is the distribution channel to reach your target customer feasible for you to execute?

• Can you enter adjacent markets from this segment to scale? I.e., Does gaining a stronghold in this market allow you to springboard into other markets quickly?

• Does the target customer have a compelling reason to buy? Find out if the customer is happy with what currently exists. Are they doing a workaround or perhaps they’re doing nothing about the problem at all?

• Can you deliver a complete product? Based on what your customers’ needs are, can you deliver a product that satisfies those needs fully, not just partially?

• Is there an incumbent competitor that could block you? Are you going against a market leader head to head which you can’t compete against?

• Is the market consistent with your passion and goals? Are you willing to commit years of your life to this market segment and will this give you the satisfaction of achieving your individual goals?

At the end of this process, you should be left with only a few segments that are viable, assessable, and attractive. The next step is to figure out how those markets will respond to you and your solution and find your beachhead market.

How niche is niche?

Don’t worry about going too small, once you have a stronghold in your beachhead market, you can always grow from there. 

One of the most important concepts when communicating with your brand is your “niche”. What you're known for.

I know that this may sound obvious, but it’s one of the hardest concepts to get your head around. When you find your niche, you will know your audience and be able to speak to them directly.

How do I choose my niche market?

To settle on a single market to target is no small thing. It takes bravery and laser focus to only want to serve one group of people first.

To achieve both of these things, you have to set your mind to ease. And the only way to do that is by doing primary customer research.

By going out and talking to real customers, finding out what problems are, and walking in their shoes is essential to creating a product that they will pay for.

Don’t trust what you see on the internet, go out and see for yourself because the answer lies with the customer.

Ask them about their problems and their challenges, tailor your solution to fully solve these problems and demonstrate expertise in the market itself.