PSPINC CEO Kenichi Uchikura's Blog

When selling products or services, it is crucial to clearly define the target market. Focusing on specific customer segments or needs makes it easier to create messages and devise sales strategies. Conversely, products or services designed for a broad audience can make it challenging to identify and target a specific market, leading to intense competition. Below, I elaborate on these perspectives.

1. Understanding the Target Market and Crafting Compelling Messages: Understanding who the product or service is intended for is a critical step in grasping the expectations and needs of that market. Creating messages tailored to specific customer segments enhances appeal within that market. A deep understanding of the target market allows for emphasizing the unique features of the product or service, making the proposition more attractive to customers.

2. Market Limitation and Avoiding Competition: Focusing a product or service on a specific market is beneficial for differentiation and avoiding intense competition. A broad market often results in fierce competition and price wars. On the other hand, narrowing the focus to a specific market reduces the number of competitors, minimizing the likelihood of customers switching to alternatives from other companies. This facilitates the pursuit of value and differentiation beyond just pricing.

3. Starting from a Small Market and Growing: Initially, limiting the market may seem like starting in a small space, but concentrating efforts on building a share and enhancing satisfaction gradually leads to growth. Catering to specific needs in a small market allows for the establishment of strong bonds with customers. Success in this market can serve as a foundation for expansion into other markets, leveraging a strong brand and track record.

4. Optimization for Specific Markets and Increasing Customer Loyalty: Focusing on a specific market allows for optimizing products or services to meet the unique needs of that market. This optimization enhances customer satisfaction and, consequently, increases customer loyalty. Delivering excellent customer experiences in a specific market promotes repeat purchases and word-of-mouth referrals, facilitating the acquisition of new customers.

In summary, limiting the market can offer unique advantages for businesses. By concentrating efforts on a specific market, differentiation can be achieved, leading to a strong and stable position in the long term.