Blog 5 of 6: Market Focus and Branding
This is the fifth in a series of six blogs that draws on our extensive research involving 75 medium-sized businesses and 1500 leaders. This research has identified six key challenges that these businesses must address to succeed.
Too many New Zealand businesses are too humble and try to grow in secret. We need to defeat the ‘tall poppy’ syndrome of NZ business. In the competitive landscape of modern business, must be bold and have a clear market focus and a strong branding strategy is essential. Companies must not only understand their addressable market and competitors but also truly know and connect with their target audience. Here’s how businesses can refine their market focus and elevate their branding to stand out and succeed.
Research and Understand Addressable Market and Competitors
The first step in honing your market focus is to conduct thorough research into your addressable market and identify key competitors. This involves analysing market size, growth potential, demographic characteristics, and consumer behaviors. Understanding the competitive landscape is also crucial; it helps you identify what your competitors are doing well and where they are lacking, providing you with an opportunity to differentiate your offerings. If you are about to enter a new market this is a ‘must’ first step.
Know Your Target Market and Own the Voice of the Customer
Deep knowledge of your target market is foundational. This goes beyond basic demographics to encompass psychographics—understanding customer motivations, preferences, and pain points. Owning the Voice of the Customer means actively listening and responding to customer feedback, engaging them through personalised experiences, and ensuring that your products and services evolve in alignment with their needs and expectations.
Develop Your Product or Service Brand, and Your Employer Brand
Developing a strong product or service brand involves creating a distinct and appealing identity that resonates with your target market. This includes visual elements like logos and color schemes, but also the emotional responses your brand elicits. Simultaneously, your employer brand—how your organisation is perceived by current and prospective employees—needs to reflect the values and culture of your workplace, aligning with your corporate identity to attract and retain top talent. In sectors with an ongoing war for talent, people have choices – why would they want to work for you?
Have the Confidence to Focus (Versus Being Everything to Everyone)
It is likely that you initially grew your business by doing whatever it takes, and being anything for anybody, but now 80% of your revenue comes from 20% of your clients. Trying to cater to everyone can dilute your brand and leave your core audience unsatisfied. It is essential to focus on your niche, offering specialised solutions that meet the specific needs of your target market (the 80%). This focus allows you to build expertise and credibility within your chosen field, making your brand a preferred choice among consumers who are looking for products or services in your category.
Move Beyond Passive Referral and Resource Sales
In today’s dynamic market, relying solely on passive referral and traditional resource sales methods can limit your growth. It’s important to proactively engage with potential customers through direct engagement and marketing, social media, and community involvement. These efforts can transform passive customers into active brand advocates, amplifying your reach and impact in the marketplace.
Create Social Validation and Proof
Social proof is a powerful tool in building trust and credibility. This can be achieved through third party ratings, customer testimonials, case studies, user-generated content, and endorsements from industry influencers. Demonstrating the value of your offerings through real-world examples and reputable sources reassures potential customers of your product’s effectiveness and the reliability of your brand. Video is the ‘must-have’ realm of influence because it is real, tangible and authentic and people are watching it across multiple mediums and platforms constantly.
Conclusion
Focusing your market strategy and refining your branding are critical steps in setting your business apart in a crowded marketplace – be confident and own your space. By understanding your market and competitors, deeply connecting with your customers, honing your brand identity, and leveraging social validation, you can create a compelling brand that attracts and retains loyal customers. These strategies not only enhance your visibility but also bolster your overall market position, driving sustainable growth and success.
Contributed by Greg Allnutt MNZM, Partner