Targeting Niche Needs

Targeting Niche Opportunities Profitably

In most markets there are segments/niches that are less popular and there for poorly served by sellers of goods and services. This document is intended to explain how marketing opportunities for profits may be targeted and served profitably. Uncovering needs for products and/or services and then selling to satisfy those needs enables salespeople to succeed financially. Simply put, this paper suggests salespeople who want to diversify or completely change what they are selling should first discover a market or market niche that is being underserved and second find a way to serve that niche profitably. Principles, processes, and people should be learn/studied to build confidence and capacity to succeed.

An example of a “market” is the trucking industry. Transportation of materials and products is a financially significant business/market. Many insurance companies insure many trucking operations hauling many items and materials to many businesses and individuals. Therefore, it is appropriate to first ask: What part of the trucking industry is not being served well or being neglected? What segments are being underserved? What do truckers want to start buying or what do they want improved? Secondly, decision makers should determine what should be arranged so the need(s) defined by the previous questions are met profitably. What principles, processes, and people are needed to reliably make win/win agreements between sellers and buyers?

The following figure is offered as a generic Targeting Matrix to enable readers to see one of many ways this process could be illustrated and applied to many marketing* opportunities:

* Marketing is defined as:

1. the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to satisfy customers

2. the business of planning/coordinating, advertising, promoting, and selling directly and indirectly to willing buyers

3. finding out what customers want, then working to meet their needs profitably

Another way of looking at this subject, trying to see it as a process, is to picture it as a staircase rising from basic to higher level activities as seen below:

Entrepreneurs discover needs, define the who, what, when, where, why, and who involved with those needs, and then develop opportunities to satisfy those needs profitably. This process should be applied to risk management in general and insurance in particular. How do you recommend it be done? Send your comments, concerns, and questions to jtg1@profitableunderwriting.com soon.