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Going after a smaller group of people is smart because you're speaking your prospect's language. One good example of this is with auto repair shops. Instead of targeting people who have a wide variety of different cars, go into the business of servicing only Honda vehicles.
People with Honda vehicles will see your message or ad and will immediately think that they need to come and see a "specialist" -- and that specialist is YOU. You can raise your prices because more than likely, you're the only person in your area who are only targeting Honda vehicles. Because of this "affinity" to the niche, you'll get customers all day long - because no other competitor is doing what you're doing.
I learned a long time ago that if you try to market to everyone, you will reach no one. Plus, you'll end up spending more money on advertising because it's tough to be heard in a crowded marketplace.
You want to be the only person in the yellow pages and in newspapers that have an auto repair shop solely for Honda's. If you can revamp your campaign by targeting a smaller group of people, then more than likely you'll earn more and work less, simply because visitors are seeking out YOU -- instead of you seeking them out.
Start targeting a smaller group of people today. Good luck!
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