The Three Types of Markets

Today I’d like to talk about the three types of markets your firm could possibly market to. It is important for advisory firms to first identify the type of audience they want to address so that they can adopt the appropriate marketing and messaging strategy.

First, there is the mass market. This is basically serving everyone who could benefit from the service and can pay the fees. This is the marketing the large national firms do. Their service is generally undifferentiated from their competitors. Think of the advertising you see for retail services at Schwab, TD Ameritrade, and Fidelity. Because the market is so big, the message they communicate is very general to appeal to as many people as possible. It is undifferentiated from the competitors, including you. For a boutique RIA, it is very hard to compete for the mass market because you are competing against companies with huge budgets, robust in-house marketing departments, and multiple award-winning advertising agencies working for them.

The second option is a segmented market. With this approach, you take the mass market and then break it down into different segments to market to. I refer to this as the law firm approach because this is the approach large law firms take. They have an overall brand but different practice areas to serve various market segments. For example, law firms will have industry sectors such as construction, real estate, and energy, or practice areas such as family law, mergers and acquisitions, and intellectual property. Visit any large law firm website and you will see how this approach works. Segmenting is an easier marketing approach than mass marketing since it does narrow in more on who you are trying to serve. The pitfall with this approach is that many small RIAs choose five or six different segments, diluting their efforts and message. For example, I commonly see firms segment into these five segments: pre-retirees, retirees, widows, business owners, and divorcees. If you have the staff to pull it off, great! But most firms have not put in enough effort into any one of these segments to pull it off. What ends up happening is they practically end up back in the mass marketing boat trying to capture all potential clients who could benefit from their service. To successfully pull off this approach, you should have one advisor dedicated to just one segment.

Finally, there is the niche market where you basically focus all of your efforts on just one market segment. You are able to differentiate your specialty from firms that are focused on mass markets. And because you are concentrating your efforts on one market, it is a less expensive and less time-intensive way to market. If you are a firm with only one or two advisors, this is generally the best approach to take, though larger firms also benefit from a niche approach.

Now that you know the three types of markets, which one does your firm market to? Would it make sense to change your approach depending on your size, capacity, and marketing budget? If you are considering a niche market approach, I invite you to visit our website at www.kaleidocreative.com to learn more about how we help firms select and market to a niche.

The 52: Three Reasons Not to Use Review Sites

Week 6

Three Reasons Not to Use Review Sites

Last week we discussed why you might want to use review sites such as Google My Business and Yelp in your marketing once the SEC permits their use in the coming months. Now let’s look at three reasons why you might not want to use them:

1. If you have a virtual practice with a national niche-focused client base, local review sites won’t play much of a role in your search engine optimization strategy.

2. Negative reviews may do more harm than the positive reviews provide benefit, creating additional compliance headaches. (Note: People can leave reviews whether or not you claim your various profiles.)

3. Review sites could create the perception that your brand is like a standard retail business, such as a local car mechanic or coffee shop, instead of a provider of expert advice, like an M&A attorney or an oncologist. Depending on how you currently position your firm, this may not be an ideal outcome.

P.S. We now release infographics twice a month on various marketing topics to social media. Check out last week’s on how to choose a niche.

The 52: Three Reasons to Use Review Sites

Week 5

Three Reasons to Use Review Sites

The December SEC announcement that RIAs will soon be allowed to use review sites such as Google My Business and Yelp as part of their marketing has firms wondering, “Now that we can, should we use these sites?” Here are three reasons why you might:

1. Review sites play a major role in your local rankings on search engines.

2. They are another channel for prospects to find you.

3. They are a tool for prospects to research your firm and compare you against your competition.

We’ll talk next week about why you might not want to use these sites.

P.S. Our January Niche Starter Kit start date has closed. The next program begins February 26. Learn more!

The 52: Do Less by Focusing More

Week 4

Do Less by Focusing More

If you want to do less marketing, the answer is to focus on a niche. Firms that focus on a niche are better able to leverage their efforts and build lasting momentum. While it takes significant initial effort to integrate into a niche, once this is achieved, it takes very little effort to maintain momentum. That means in the long run, you spend less time, money, and energy on marketing.

P.S. This is the last week to sign up for the January 29 start date of the Niche Starter Kit. Learn more!

The 52: Marketing New Year’s Resolution #3: Avoid Random Acts of Marketing

Week 3

Marketing New Year’s Resolution #3: Avoid Random Acts of Marketing

Random acts of marketing are those “brilliant” ideas that are going to shift the trajectory of your marketing once and for all. Usually, these ideas come from a sales representative trying to sell you something, or they could come from a conference or webinar session designed to draw attendance.

While random acts of marketing sound good, they rarely produce results. When you implement random acts of marketing, you will:

• Take time, money, and energy from the well-thought-out marketing strategy that took weeks or even months to develop (if you have one at all)

• Make your staff members feel like they are chasing their tails

• Confuse the community, prospects, clients, and COIs over your messaging and branding

This year, avoid random acts of marketing that are not integrated into a bigger marketing strategy.

P.S. Is a new niche part of your 2021 marketing strategy? Get a jump-start with our new Niche Starter Kit program starting January 29. Learn more!

The 52: Marketing New Year’s Resolution #2: Stick to What Works

Week 2

Marketing New Year’s Resolution #2: Stick to What Works

Boredom is the enemy of marketing. Implementing the same tactics week after week, year after year, can become monotonous, and you may be tempted to try something new. But it is this focus and consistency that produces marketing results. This year, instead of shifting gears because you are bored with your marketing, redirect that time and energy to perfecting your existing campaigns.

P.S. Have you thought about exploring a niche market? Check out our new Niche Starter Kit program starting January 29. Learn more!

The 52: Marketing New Year’s Resolution #1: Strategy First, Tactics Second

Week 1

Marketing New Year’s Resolution #1: Strategy First, Tactics Second

Strategy is your long-term plan for achieving a goal. Your strategy rarely changes. Tactics are the actions that support your strategy. These change all the time based on changing environments. For example, your strategy could be “Positioning our firm as a thought leader among socially conscious investors.” Your tactic would be to develop weekly videos and share them on YouTube. YouTube videos may change to live-streaming videos and then again to virtual conferences—but your strategy stays the same. This year, instead of deciding which tactics you will implement, define your long-term strategy first, then choose the tactics that will support your strategy.

Source: Derived from Seth Godin’s teachings.