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Marketing Agency - Need To Go For A Niche?
Posted By: gavin.dowling* on 6/2/2004 12:01 AM (CST) 125 Points
I'm in the process of setting up a marketing agency that offers the full suite of services (stategic consulting, design, print, analysis, advertising etc.) with no one specialism. The idea is basically to provide an outsourced marketing department to small and medium sized business. Any need to go for a niche in this case?

Posted by: The Consultant ™* Accepted Answer
6/2/2004 7:35 AM (CST)
My first question is, are you planning to cater to just a particular sector or do you have the resources and the capabilities to cater to the marketing needs of a number of sectors. This is because marketing techniques and strategies vary from say a B2B to a B2C company or from the pharmaceutical to the FMCG sector etc. Once you have decided upon which sectors are you best suited to cater to, then you have your initial market size. Its always better to target customers to whom you can provide the best service. Also, there are certain benefits of going for a niche such as lesser competition, greater customer loyalty and customisation of your product or service offering. However, you need to find out the potential demand for your services in such a niche market.
I suggest you stick to a more broader and dynamic market rather than opt for a niche as this will not only provide you with several options to pursue and a substantial amount of customers but also help you grow at a faster pace if your services are good.
 
Posted by: kwinters* Accepted Answer
6/2/2004 8:39 AM (CST)
I would say start with the broad market first and see where it goes from there, you can always specialize down the road as and if you need to...what are you going to name your business?...Have you thought about something like "CMO to go", or "The Marketing Department," or simply "CMO"?...good luck...In some ways I am envious because I don't have enough guts to do it myself!...
 
Posted by: Michele Accepted Answer
6/2/2004 9:48 AM (CST)
Difficult question.
In a way you have already segmented the market by market size (which is a niche) and this will determine the kinds of media you focus on. Most medium sized business do not have budget for above the line advertising, so you will probably focus on PR, Direct, and Online - but, you will need to be able to offer a turn key solution (which means you may outsource components of the work) taking the hassle of managing multiple vendors away from your client.

You will probably find that you will gravitate to wards areas that you have prior exposure to or a high passion for. You will probably also end up focusing either on FMCG or services as your core market - but try to keep a spread - ideas cross pollinate across industries which gives your clients a richer mix at the end of the day.
 
Posted by: Jim Deveau/Catalyst* Accepted Answer
6/2/2004 10:16 AM (CST)
Hi gavin:

I would recommend careful positioning to a niche that makes sense to YOU. I am guessing that any firm you target for your services is a small-to-mid cap firm (I am in a similar niche for my business coaching efforts). Most prospects in this area don't think they need the help - we constantly face over-ionflated owner/founder egos and inbred cultures.

If a firm like this finally recognizes they are in need - they will be highly risk-averse. Your targeting and positioning, then, (in my opinion) should put them at ease (we deal exclusively with others like you) and have the "goods" to back you up (here is a list of business owners you can contact to find out more about our successes). Understanding you are in start-up mode- trade on the personal references you each bring initially.

I hope this helps.
 
Posted by: gerardodada* Accepted Answer
6/2/2004 10:45 AM (CST)
About one hour ago our team was looking at a proposal from a marketing firm who is offering their serviecs to us. They offered help in the areas of strategy, web development, advertising, growing our community, and others. My first tought was that these guys can't be good at all these things, impossible to have a team of thre people be good at strategy to web development.

And they might, but your message is much more bvelievable if it is focused in one specific area of marketing, or, on one specific industry/customer type. Specially in a market where there are marketing consulting firms everywhere.

As ane xample, you can focus on help architects market their practice, or help chemical companies. The domain expertise and the understanding of their customer bases will make you much more effective in your job and will provide a real differentiation when competing with other 'generic' firms. In addition, a defined market focus makes it easier to find customers, because your target is better defined and easily reachable

My 2 cents - good luck!

Gerardo
 
Posted by: Lois* Accepted Answer
6/2/2004 11:58 AM (CST)
Having done this for many years, I know that you need to specialize--either in a particular market segment, like truck manufacturers, or with a particular size target market (closely held companies with 10 or less employees and sales of $2 million +). The smaller you niche your market, the more money and clients you will get. You need to become an expert in something!

Lois Carter Fay, APR
Publisher, Brainy Tidbits (sign up! it's free)
Marketing Idea Shop
Brainy ideas and resources for women business owners
http://www.marketingideashop.com
 
Posted by: gavin.dowling* Author Response
6/2/2004 11:49 PM (CST)
Thanks everyone.
My background is in education marketing - recruitment of students for international study - as well as working in broad, multi-sector marketing for a few agencies. My personal expertise is marketing management, communications, customer service, writing and strategy. I have previously worked as a mkg consultant and begun partnerships by carrying out marketing audits.
This new venture aims to extend the service by having a "virtual" team - a network of experts in the various disciplines - graphic design, print, e-commerce, planning etc. So, I personally don't have all the expertise but can provide a "total solution". I think... For that reason I asked about the need to go for a niche. Thanks a million.
 
Posted by: clientflow* Accepted Answer
6/3/2004 9:12 AM (CST)
"Narrow Your Focus To Broaden Your Appeal"

Those are wise words from Harry Beckwith, the author of books on how to market and sell services.

The Case For A Niche Strategy

1. Clients Love Specialists
Clients always feel better choosing a marketing firm that specializes in their field. It assures them you understand their business, their unique situation.

2. Marketing Firms Galore
Have you ever noticed how many gazillion marketing firms exist out there. All hoping to attract the best client opportunities. It's not good enough to have the right capabilities or a unique process.

3. Market Penetration
If you choose the right niche, you will have leverage to penetrate other niche markets down the road. For example, success in the small banking sector may give you the credibility, knowledge and skills to go after related sectors such as insurance compannies, brokerage firms, etc.

Having said all that - you'll probobly find that no matter what your focus ends up being, 30% of your business will likely fall outside that focus.

All the best.

Mark R. Terpstra
Clientflow LLC.
 
Posted by: clientflow* Member Response
6/3/2004 9:14 AM (CST)
"Narrow Your Focus To Broaden Your Appeal"

Those are wise words from Harry Beckwith, the author of books on how to market and sell services.

The Case For A Niche Strategy

1. Clients Love Specialists
Clients always feel better choosing a marketing firm that specializes in their field. It assures them you understand their business, their unique situation.

2. Marketing Firms Galore
Have you ever noticed how many gazillion marketing firms exist out there. All hoping to attract the best client opportunities. It's not good enough to have the right capabilities or a unique process.

3. Market Penetration
If you choose the right niche, you will have leverage to penetrate other niche markets down the road. For example, success in the small banking sector may give you the credibility, knowledge and skills to go after related sectors such as insurance compannies, brokerage firms, etc.

Having said all that - you'll probobly find that no matter what your focus ends up being, 30% of your business will likely fall outside that focus.

All the best.

Mark R. Terpstra
Clientflow LLC.
 


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