A market in its entirety is too broad in scope for any but the largest companies to tackle successfully. The best strategy for a smaller business is to divide demand into manageable market niches. Small operations can then offer specialized goods and services attractive to a specific group of prospective buyers.
Niche Market: Evaluate your speciality and the Market
There are undoubtedly some particular products or services you are especially suited to provide. Study the market carefully and you will find opportunities.
While researching your own company's niche, consider the results of your market survey and the locals in which your competitors are already firmly situated. Put this information into a table to illustrate where an opening could exist for your product or service. Try to find the right configuration of products, services, quality, and price that will ensure the least competition. Unfortunately, there is no exact effective way to make these comparisons. Not only will the desired attributes vary from industry to industry, but there is also an element of imagination that cannot be set in a formular.
Niche Market: Focus
A designed database can help you sort through your market information and expose particular segments you might not see otherwise. For example, do customers in a certain geographic area tend to purchase products that combine high quality and high price more frequently? Do your small business clients take advantage of your customer service more often than larger ones? If so, consider focusing on being a local provider of high quality goods and services, or a service-oriented company that pays extra attention to small businesses.