The more mature an industry is, the more creative and thoughtful its players must be in their strategies to maintain or grow market share. We are at that stage in Tutoring, Test Prep, and Independent College Counseling.
Presently, the verbiage intended to distinguish one's services from one's competitors is, well, indistinguishable. To show you what I mean, ask yourself if any of the following verbiage describes your services:
• Highly personalized
• One-to-one
• Effective Average score increase of XX
• Concierge service
• Convenient in-home meetings
• Flexible
• Top scoring tutors
• Former College Admissions Officer
Large firms have taken note and have shifted to building brand communities offering plenty of free material to complement content based marketing strategies. In fact, TPP believes that signaling exists to suggest that user data collection may be the new focus of industry giants Kaplan and Princeton Review.
If true, this would be good news for stalwart educational service firms who focus on superior products and student outcomes. Whether one buys in to the TPP theory or does not, the fact remains that small firms must refine their competitive strategies as a result or perceived homogeneity in the industry.
One option available to every provider is to adopt a more targeted approach with a focus on one or more niche markets. A well-executed niche strategy can help:
• Attract quality students who are well-fitted to the institution or school;
• Influence operations to match students’ needs;
• Reinforce a more sustainable competitive position.
What is a niche?
Niche marketing is based on the reality that no business can be all things to all people. BusinessDictionary.com defines a market niche like this: “A small but profitable segment of a market suitable for focussed attention by a marketer,” and explains that:
“Market niches do not exist by themselves, but are created by identifying needs or wants that are not being addressed by competitors, and by offering products that satisfy them.”
One real-life example of a market niche: international students interested in pursuing education in the US or the UK.
Educational service firms responding to this market demand might develop and promote new, specialized test prep or admissions programs which cater to students overseas. They might offer discounts to respond to students’ cost-consciousness. They might even create a series of free introductory webinars to allow prospective students to sample the product or service.
This example reflects some of the basic aspects of any niche strategy:
• Focus on a customer group and be as specific as possible;
• Refine the offering for that group: take away the things that they don’t want or need and add new features or services that they will value.
By identifying a niche – then adjusting programing, operations, and promotions accordingly – one can differentiate from competitors.
Tips for creating a sustainable niche:
As noted earlier, a good niche strategy is grounded in a specific customer group, and there are a number of ways through which you can identify promising target segments.
For example:
• Think about the characteristics of current students and recent alumni. What were they looking for when they were researching schools and programs – and how did they come to discover your firm? What do students and alumni think your firm does best? What do you think your firm does best? (Read: The importance of the hedgehog... )
• Pay attention to the trends being covered in market intelligence publications. Are there any that are relevant to your markets and programs?
• For example, in the past decade, the percentage of Asian students studying in the US has increased nearly 300%.
• Talk to your partners overseas: agents, schools, other stakeholders. Get their insights on where market demand is going and look for opportunities to match that shifting demand to your strengths.
There is a trend in niche marketing to be more and more specific in your segment focus, but keep in mind too that you can define a niche in ways that cut across conventional parameters of age or geography.
Focusing on a segment often enables a new way to compete because the firms that try to be everything to everyone will inevitably fall short across some or all groups. Remember as well that niche marketing works when it identifies needs that are not being met by the competition. And when you identify the segment you aim to serve, make sure you do it better–than anyone else.
Once you have identified what you do well and aligned it with a niche, the next step is to refine your offering. For each niche you are interested in, put yourself in the shoes of the student and answer the questions: “What do I want? What can I afford? What should I received in order to value my experience? What’s the best way of reaching me and engaging me?”
The answers to these questions should help you better define the product, the messaging, and the overall value proposition in a way that resonates with the potential client.
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