How to Select the Right Market?

How to Select the Right Market for Explosive Business Growth

SUMMARY KEYWORDS

market, service, selection, characteristic, talking, organization, target, business, growing, offer, niching, automotive industry, standpoint, order, hotdog stand, customers, Jesse, automotive, customer lifecycle, Alex

SPEAKER: Jesse Razo

00:00 – Niche market selection for digital ads.

It’s much, much easier if you’re communicating to a specific customer avatar than it is if you’re going after the masses. So, that’s one of the first advantages. A business advantage that you should be conscious of when you’re talking about putting together your marketing campaigns.

It’s Jesse here, I got another quick training for you. Today, I’m going to talk with you about market selection. And, I’m niching down within that market in order to increase the results of your digital ad campaign.

Now, for those of you who don’t know me, my name is Jesse. And, I’m the lead designer at razoRSharp networks. For the past decade, we’ve been helping our clients, optimize their online environment, and automate their customer and patient lifecycle. Today, I’m going to talk with you about market selection and the niching down within that market. But, before I do talk with you about the tactics associated with that.

00:52 – Targeting a specific customer avatar.

And, the strategy behind it, what I wanted to do is talk with you about the value associated with it. First and foremost, it is from a communication standpoint. And, it is much easier to communicate with a single customer avatar than it is to communicate with the masses. So, it is from a communication standpoint, when you’re talking about originating digital advertising, email marketing, and posts.

And, any other type of content that you utilize within a channel in order to try to grab somebody’s attention. Because it’s much, much easier if you’re communicating to a specific customer avatar than it is if you’re going after the masses. So, that’s one of the first advantages. And, it’s a business advantage that you should be conscious of when you’re talking about putting together your marketing campaign.

01:38 – Cost-efficient targeted marketing.

Secondly, the costs associated with targeting a specific individual are much, much lower than it is for targeting everybody. So, let’s give you an example of that. Then, let’s say that you’re targeting everybody, or you’re in business and you’re like, Well, I can service everybody. And, you go out there and try to do so well. So, it’s the cost associated with getting in front of everybody in a specific market is much, much higher.

And, it doesn’t matter if you’re a regular business, doesn’t matter. Or, it is if you’re marketing on a national level or an international level. And, the costs associated with getting in front of those people become exponentially bigger as your target gets bigger. So, if you’re thinking about communication, you’re thinking about the costs associated with getting in front of people.

02:24 – Advantages of market selection for growth.

Of course, niching down is going to be much more advantageous to you and your organization. So, even if you have big pockets, you want to make sure that you prove things out. And, you learn from what it is that you’re doing. Then, you create a model that is going to give you the ability to scale and grow over time. So that’s one of the competitive advantages associated with niching down.

Now, the second competitive advantage you want to think about is an actual market selection. And, it’s one of the things that I wish I had learned earlier on in the process. Actually, I watched training from Alex Hormozi who owns acquisition.com and wrote a book called Believe $100 million offers. He talks about market selection and the importance of market selection whenever you’re creating a product, service, or offer.

03:12 – A most important factor for business success.

Then, he was talking about how he was sitting in a business and/or marketing class. And, the teacher presented a really profound question to the class. He said; well, when you’re putting together a business and offer what are the most important characteristics to ensure the success of the offer? And, the class went through an exhaustive search in regard to it and everybody answered wrong.

They said, location, they said whether or not your product or service is good. And, the pricing features bonuses, and all those kinds of things were thrown out there. So, at the end of it, the instructor said. Well, the most important thing about having successful offers making sure that you have a starving crowd. Or, have a group of people that are hungry for what it is that you’re providing. And, he gave an example of a hotdog stand outside of a stadium.

Or, how a hotdog stand outside of stadiums has the most expensive hotdogs that don’t taste really that good. I mean, it’s just a hot dog. And, what they can do is they can crush it. Or, if you know they’re in front of that crowd that’s coming out of the stadium that has been drinking. And, that has been watching the game, been participating, and all that kind of stuff.

So, as they come out, they’re starving crowd and that hotdog stand actually sells out. First and foremost, this is when you’re talking about market selection. So, make sure that you can identify a market that is hungry for what it is that you provide. So, that’s the first characteristic of market selection whenever you’re developing a product, service, or offer. And, whether or not you want to open up a new location or expand on your existing one.

05:01 – Selecting the right market for growth.

Secondly, make sure that they have the money to spend what it is that you want to charge, right? A lot of times, what we’ll do is we’ll go into business. Then, we’ll create offers that target people who don’t have the money. And, we’ll have a high ticket offer and we’ll target people that don’t have the money. Or, will have actually a low ticket offer?

And, we’re never able to get profitability because we don’t charge enough associated with products and services and the value that we provide. So, make sure that your target market has the money to spend. And, you have the ability to charge what it is that you are and think that the product is worth it. Or, it’s incredibly important when you’re talking about picking the right market.

A Brief Announcement!

So hey there, Jesse here, and this is not a glitch, I pause your video for a brief announcement. First and foremost, you’ve been getting value out of this content. Now, do me a small favor, and give us a thumbs up. We appreciate it very much, and it helps out with the YouTube algorithm. So, let them know we know what it is we’re talking about. Secondly, if you’d like to get access to future training, go ahead and jump over to our YouTube channel.

And, subscribe and set up notifications so you don’t miss a single one. Lastly, all these videos are meant to be interactive. So, if you have any questions about the content that I’m sharing, good or bad. Then, go ahead and meet me in the comment section. And I’ll get those handled for you. Now back to your video.

5 StarsbyChristopher Jacob

5 StarsbyNew Image Dent Repair

5 StarsbyGeorge Cain

5 StarsbyDave Razo

06:25 – Selecting the right market for success.

Are they easy to target? That’s another characteristic of a market selection is can you find places where they currently congregate. Right, there are a lot of groups out there both on LinkedIn, and on Facebook. And, there’s a lot of opportunity, if you’re a local service provider. Like the Chamber of Commerce and things like that to target people in a specific demographic, or specific industry. So, if they’re easy to target and they have the money to spend on your offer.

Then, that would be a great market selection. Now, is the market growing? And, I thought that this was a really great example that Alex Hormozi presented as he said he had a friend. I don’t know if it was Alex Hormozi. Maybe, it was a book or an audiobook that I was listening to.

But somebody that I had listened to said that they had a friend that was one of the best newspapers advertising. And, salespeople had a great product that went out there and was crushing the market. Year over year, though he was declining, in market share and revenue. And, the reason for that is ad revenue from magazine or newspaper sales.

Newspapers shrink at a rate of about 25% a year because people are going digital these days. With that being said, if you serve a market that is shrinking, you’re going to have a headwind when it comes to growing your business. And, a business can be challenging. So, you want to make sure that you create as much tailwind. And, create as much momentum as you possibly can for your organization and your business.

08:04 – Customer lifecycle automation for shrinking markets.

So, if you’re servicing a market that is shrinking, of course, your business is going to have more challenges. And, you can have more friction associated with growing. So, customer lifecycle automation is all about removing friction. And, one of the ways that we do that is through automation and technology. Also, another way that we do that is through strategy. And market selection is the first step in the process.

So, make sure that they have the money to pay what it is that you’re willing to charge to be profitable. And, that they’re easy to target, and that they are in a market that is growing. So, those are the three characteristics you want to ask yourself whenever you’re talking about market selection. Again, thank you, Alex Hormozi for clarifying that. We had a great Hold on, you know, really niching down within a market.

08:50 – Market selection for new rollouts.

Now, when we’re talking about rolling out new markets, market selection is probably the most important characteristic of the success of your organization. But, the number one characteristic is making sure that is present in the market. Or, know if they are hungry for what it is that you’re offering.

That’s incredibly important. So, those are the four characteristics of market selection regarding creating a customer, Avatar. Or, what we call a dream customer avatar. Now, once you get the market selection worked out, then within that market, get up, and get more niches. I’ll give you an example of the process that we went through.

09:33 – Recession-proof industries: Automotive and Healthcare.

Now, in our market selection, we had verticals that we were servicing, the automotive industry and also the healthcare industry. So, what we did is we took a look at those two industries and we wanted to be in a recession-proof industry. And, we’re going through time as I’m recording this video where people are concerned about the economy.

In both the automotive and medical industries that we service, the vast majority of our customer’s revenue comes from insurance, insurance claims, or their cash pays. So, there are services that people are going to subscribe to, regardless of what the economy looks like. It’s kind of like cell phones. Cell phones are one of those things or industries that are recession-proof. Well, we’ll let go of a lot of things.

But we’re probably not going to let go of our cell phones and the ability to connect with people over a mobile device. And, there’s too much convenience that’s built into that. So, it’s in the automotive industry that we service, a lot of insurance claims and things of that nature. So, there are a lot of deep pockets. And, regardless of what the economy’s doing, there’s always going to be an opportunity to serve that market.

On the healthcare side of it, we do both sides of the industry. Then, we have customers who are engaged with insurance companies from a medical insurance standpoint. And, it is as opposed to an automotive insurance standpoint. So, we service those types of customers as well.

11:04 – Market selection for medical and automotive industries.

So, from a market selection, that was the first thing. And, that’s maybe a hidden characteristic that might be something that you’re thinking about when you’re talking about market selection. This is market recession-proof, Right? Because we want to make sure that the market still exists if something happens to the economy. Like, we’re going through right now, as I’m recording this video. Now, in addition to that, do those markets have money?

So, both markets are relatively flush with money. And, are they easy to target absolutely? So, that was another characteristic we took a look at. And, is the market growing? One of the markets that we serve is definitely growing. And, it’s been growing for years. And, are they hungry for what it is that we deliver?  Well, the answer to that was yes.

So, that’s the process that we went through in regard to market selection. Now, within each one of those markets in the medical field, and also the automotive industry. Then, what we did is niche down into those industries into specific segments. So, on one side in the automotive, we service automotive reconditioning companies, auto spas, and things of that nature.

Then, on the other side, we service organizations like pain management, neutral, neuropathy, and things of that nature. Or, that are specialists in their fields when it comes. And, we’re also looking for organizations that have one to 10 locations in each one of those market segments. So, well-established all the way up to thriving organizations that want to take their business to the next level. And, attract more patients, and attract more repairs.

12:44 – Successful market selection process.

And that’s the process that we went through in regard to our market selection. So, it’s four characteristics with that one hidden characteristic that I just talked about and discovered. Actually, it’s on this training, as I was thinking about it, we want to make sure the recession is proof. And, we want to make sure they’re hungry for what it is that we’re offering.

Then, they have money, they’re easy to target, and are they growing from a market standpoint. So, if you follow that, I would assert that you’re going to have a lot more success. Again, it’s all about creating a tailwind for your business. And, removing friction associated with growth. Business is hard enough as it is don’t make it any harder than it has to be on you. So that’s all I have for you today.

Hopefully, you got some value out of that. I hope that you did because those are really great strategies and things that provided a lot of value to my organization. So, I wanted to share that with our community.

And hopefully, you leverage that along with the frameworks that we provide, with the local legend marketing methodology. Our five-step process in order to organize your digital ad campaign, customer lifecycle, automation strategies, and frameworks behind building out your campaigns. That’s all I got for you today. Until the next time we speak, make today and every day a fantastic day! We’ll talk with you real soon.