Niche Marketing versus Creative Marketing

This is from an email conversation with the Gillum House B&B, started by the Market Niche article published in Arrington’s Bed & Breakfast Journal:

An article by Kit Cassingham in the May issue stated that one should find their niche in the bed & breakfast industry and hone in on it. Concentrating on the narrow niche that interests the innkeeper will make them more successful.


I acknowledge that if your inn is in an area that draws people so easily that it can support 10 B&Bs, you do need a niche to make you different.

However, many of the inns in this country do not have that. Also, if the “in” thing is the environment and you specialize in environmental guests, you may find yourself empty when the new “in” thing becomes popular. I believe in diversity for longevity.

It should not be done all at once. Take stock of your area and your interests, which one hopes will be more than one thing. What do you have to offer? Then, advertise to one segment of your area at a time until you are known to a few segments of the population and have a diverse guest register.

Here is what I did.

First of all, let me explain that I started my bed & breakfast from a residence in 1996 in a small city (population 2,300) and a city that said almost unanimously when I opened, “Who is going to come to Shinnston?” I also have the old-fashioned type bed & breakfast—three guest rooms with a shared bath. No Jacuzzi or spa and no private baths.

First, I got my Web site—a no brainer. I have a 17-mile rail-trail that was four blocks from my inn and has been lengthened so it is now 50 feet from my door. I spent the first few years advertising to the bike and hike folks in trail publications. I also was able to put together an inn-to-inn trail package with a bed & breakfast in the town at the other end of the trail and get an article in a big city newspaper about the package. That brought people for a few years, but I could see that it was not going to be a sustaining heads in beds by itself.

So, when a local man told me his son was trying to start a stable, I started advertising on horse Web directories and bought a few well-placed ads in horse publications. I put a link on my Web site to the WV Horse Council and let them know I had put the link up. They returned the favor. My clientele now includes equestrian rail-trail and overnight stabling.

West Virginia has great roads for motorcycling, and my husband and I are former bikers. I started a See West Virginia—Inn to Inn for motorcycles, joined a motorcycle club in a neighboring state and started advertising in motorcycle publications.

As the years have passed, I have been able to determine which Web sites or publications have brought me business and retain a few producers in each area. I also promote the history and culture available nearby with specials on my Web site such as my Covered Bridges and Glass Package and my Bike & Berry Package.

The covered bridge tour takes them to see covered bridges but also has stops at a local craft shop and a hand-blown glass factory that has free tours and a showroom. I give my guests an opportunity to leave some of their money in my state, and since the package includes a packed lunch for the tour and a dinner that evening, I also have an opportunity to increase revenue. The Bike & Berry Package has my guests take a bike ride on the rail-trail after breakfast while I pack them a lunch to take to the berry farm. Neither of these packages cost me anything, but they do bring in business. It also gets me promoted by these businesses because I promote them.

Niche is not bad, but do not hang your hat on one niche market, or you may have empty beds down the road.

Diversity is good, but it must be a considered diversity of what is in your area and what you are knowledgeable in. If you are not, study it. Kit Cassingham is correct in saying you cannot corner every market, but you should consider more than one.

12 thoughts on “Niche Marketing versus Creative Marketing”

  1. My reply:
    Kathleen’s points are interesting and well taken. But she’s missed the point of my article. I’m talking about the guest experience *at the inn*. She’s talking about the kinds of people who will be attracted to her area. Knowing who is coming to your area is critical, but what experience is offered them when they are at the inn? That’s what I’m talking about when I talk about market niche.
    Kathleen has creatively tapped the people who are coming to her area, and has done it for years. But if the people have different notions of what
    the B&B experience should be like than is being provided, they’ll be
    unhappy guests.
    From the looks of it, she’s catering to the outdoorsy group. Perfect! She has a place to keep the horses. Do the bikes get great storage areas too? Is there a hot tub for the hikers? There are lots of other outdoorsy people Kathleen probably hasn’t tapped yet, but will when the time is right. When they are at her B&B they get fresh baked muffins, baked to the guest’s dietary needs, during a breakfast time the guest specifies. Kathleen runs a green inn. These are all part of her market niche definition — personalized service and environmental action. Further definition can be used: are the sheets organic cotton or a cotton/poly blend? What are the blankets like? Is the inn decorated simply, maybe a country style, or is it English country garden? What kind of music is being played? Are there TVs in the rooms, in the TV room, or absent? How much does Kathleen interact with her guests? These are just examples of what to consider when defining your market niche.
    I’m really glad to hear her comments because it lets me have a dialogue
    with her, and others, about a subject that’s difficult to grasp and
    enact.

  2. And now, point by point discussions:
    Kit: From the looks of it, she’s catering to the outdoorsy group. Perfect!
    GH: Not catering to the outdoorsy in reality. Just filling a need. People who travel with horses need to rest them – it is not good (I have been told) to trailer a horse for more than 5 or 6 hours. The rail-trail is my “no-brainer” draw. I got into the “green” to start with because of keeping my garbage output under the residence limit to avoid the $$$ it would cost under commercial. Then when the WV DEP had an exclusive (limit 15 businesses) EMS Class, I applied because if it was a limited group I wanted to be in it (thinking ahead for publicity – got some but not as much as I had hoped).
    Kit: She has a place to keep the horses
    GH: nearby stable & I work together on this. I do the advertising and the escort service and get the room night & he gets the stable fees.
    Kit: Do the bikes get great storage areas too?
    GH: No, I have 2 bikes in a shed. Guests bikes get put on the porch or stay on the bike rack
    Kit: Is there a hot tub for the hikers?
    GH: absolutely not – I am what a bed & breakfast was meant to be – bed & breakfast, 3 guest rooms w/shared bath.
    Kit: There are lots of other outdoorsy people Kathleen probably hasn’t tapped yet, but will when the time is right. When they are at her B&B they get fresh baked muffins, baked to the guest’s dietary needs, during a breakfast time the guest specifies. Kathleen runs a green inn. These are all part of her market niche definition — personalized service and environmental action. Further definition can be used: are the sheets organic cotton or a cotton/poly blend?
    GH: Egyptian cotton or high thread count cotton or cotton blend during the warm months, flannel during cold.
    Kit: What are the blankets like?
    GH: Down-filled comforters in 2 rooms and the third room is feather-free with antique handmade quilts for folks with feather allergies.
    Kit: Is the inn decorated simply, maybe a country style, or is it English country garden?
    GH: Decor is not my milieu, the house told me how to decorate it – fairly simple without a lot of clutter.
    Kit: What kind of music is being played?
    GH: During dinner packages I put either romance or Big Band on my computer as background music for dinner – otherwise each room has a radio/CD player and they choose their own. No music is playing on arrival etc because it interferes with conversation.
    Kit: Are there TVs in the rooms, in the TV room, or absent?
    GH: I have TV and VCR/DVD in “best” room, a small TV and VCR in another, and no TV in the last room. TV’s only because I noticed I lost a couple of nights with folks (no regular B & B people) looking us over and not coming back – then realized there was a BIG sports event that night. Some like to get the weather channel. Guests who so not want TV choose Rosi’s Room.
    Kit: How much does Kathleen interact with her guests?
    GH: As much as they want! I create itineraries specific to their interests. I have a Covered Bridges and Glass Package that is very popular (2 nights, breakfasts, packed lunch, dinner, routing to bridges and glass factory and, if interested, a winery) and since my husband and I are involved in history, art, music, motorcycles, and many other interests – have kids and LISTEN to the guests – there is usually plenty of conversation. I also KNOW the area.
    Kit: These are just examples of what to consider when defining your market niche.
    I’m really glad to hear her comments because it lets me have a dialogue with her, and others, about a subject that’s difficult to grasp and enact.
    GH: I think the most important thing for an innkeeper to remember is that interest needs to be shown in the guest, the guest’s interests, and what they have to say. We, per our guests and their comments, provide a home away from home. We make sure that everything we can possibly do to make their stay enjoyable is done. When asked about an iron and ironing board, guests are told to bring down what needs pressed or ironed and it will be taken care of.
    I do not have private baths (I do have many repeat guests) or hot tubs, etc. but we give SERVICE and attention and great food. Our front porch is usually FULL of people just chatting away. They feel comfortable here because (other than biting our tongues with politics sometimes) we are ourselves and do not pretend to be otherwise. We also get a lot of first-time B & B who leave proclaiming they are confirmed B & B “from now on”.
    This is who and what Kathleen Panek and the Gillum house are. Thank you for the questions so I could answer them for you.
    If I took your article wrong, I am sorry. It really did sound as if you were advocating concentrating on a specific niche market, not a niche of a market. I still feel that only works if you have a “no-brainer” market as being in wine country or whitewater/ski country where people will flock looking for rooms – period. A variety of “market” will keep an inn in business for a long time.

  3. The Next Round, with some duplication so the next comment has a reference:
    GH: Not catering to the outdoorsy in reality. Just filling a need.
    Kit: So who do you “cater” to? What experience do you offer your guests?
    GH: I got into the “green” to start with because of keeping my garbage output under the residence limit to avoid the $$$ it would cost under commercial.
    Kit: An honorable way to get started, for sure. If only others had as basic an understanding of some of the value of being green we’d have a better world on many fronts.
    GH: Then when the WV DEP had an exclusive (limit 15 businesses) EMS Class, I applied because if it was a limited group I wanted to be in it (thinking ahead for publicity – got some but not as much as I had hoped).
    Kit: Have you found that you are slowly doing more green things as time passes, or is it purely a marketing activity?
    As someone who promotes green “hotels”, I’d like to see you list more of the green actions you take, helping potential green travelers see if their passion is catered to. Being specific helps travelers, and that helps your publicity. Perhaps even have a page specifically for green/environmental action so people can more easily find that information.
    Is the inn decorated simply, maybe a country style, or is it English country garden
    GH: Decor is not my milieu, the house told me how to decorate it – fairly simple without a lot of clutter)?
    Kit: I’d say your style is simple, something lots of tourists crave, as long as it’s tasteful they like simple.
    Kit: Are there TVs in the rooms, in the TV room, or absent
    GH: I have TV and VCR/DVD in “best” room, a small TV and VCR in another, and no TV in the last room. TV’s only because I noticed I lost a couple of nights with folks (no regular B & B people) looking us over and not coming back – then realized there was a BIG sports event that night. Some like to get the weather channel. Guests who so not want TV choose Rosi’s Room.
    Kit: Good for you for listening to what you potential guests are asking for. Your comment that those people wanting TV aren’t regular B&B people I think indicates a lack of understanding of the diversity B&B people come in. I’m a B&B person and I like having a TV; I don’t always watch it, but it’s there if I want/need it. To me, that’s what hospitality is all about. Offering comfort to your guests and letting them use what they want and ignore it if they don’t want it. For example, I may not use your shower/tub during my one night with you, but that doesn’t mean I don’t like having it there. That’s a basic example, but I think it’s valid for lots of other creature comforts, like TV, phone, internet, etc.
    Kit: How much does Kathleen interact with her guests
    GH: As much as they want! I create itineraries specific to their interests. I have a Covered Bridges and Glass Package that is very popular (2 nights, breakfasts, packed lunch, dinner, routing to bridges and glass factory and, if interested, a winery) and since my husband and I are involved in history, art, music, motorcycles, and many other interests – have kids and LISTEN to the guests – there is usually plenty of conversation. I also KNOW the area?
    Kit: Ah, you are acting like a wise, gracious hostess. That’s part of the guest experience you offer. There are innkeepers across the
    country who pride themselves in not interacting with guests because they feel the guest is there for each other, not the innkeeper. There is an inn and innkeeper for every traveler….
    GH: I think the most important thing for an innkeeper to remember is that interest needs to be shown in the guest, the guest’s interests, and what they have to say.
    Kit: I don’t know if I agree it’s the most important thing, but I agree it is very important. :~) I’ve watched many an innkeeper take over conversations guests were having so the innkeeper could share what they had decided was important. Yuck!
    GH: We, per our guests and their comments, provide a home away from home.
    Kit: That’s part of your niche definition and guest experience.
    GH: We make sure that everything we can possibly do to make their stay enjoyable is done.
    Kit: That’s good hospitality and great marketing. Those people will tell others about you, and if they are your way again will return to you.
    GH: When asked about an iron and ironing board, guests are told to bring down what needs pressed or ironed and it will be taken care of.
    Kit: That’s very generous of you. I tip my hat to you.
    GH: I do not have private baths (I do have many repeat guests) or hot tubs, etc. but we give SERVICE and attention and great food. Our front porch is usually FULL of people just chatting away. They feel comfortable here because (other than biting our tongues with politics sometimes) we are ourselves and do not pretend to be otherwise. We also get a lot of first-time B & B who leave proclaiming they are confirmed B & B “from now on”.
    That sounds like a good start to stating what your guest experience, your market niche — or brand — is all about.
    GH: This is who and what Kathleen Panek and the Gillum house are.
    Kit: And again, that’s ideally what all innkeepers would do; identify who they are, who they like spending time with, and create an experience supporting that.
    GH: Thank you for the questions so I could answer them for you.
    Kit: They weren’t actually meant as questions of you, but for you. They were intended to get you to think about what you do and don’t offer so that you could understand you do have a market niche, even if you don’t define it that way.
    GH: If I took your article wrong, I am sorry. It really did sound as if you were advocating concentrating on a specific niche market, not a niche of a market.
    Kit: I think terminology got in our way of communicating clearly. I think we have the same concepts, we just think and talk about them differently. There’s no need to apologize for “misunderstanding” my article, but thanks for offering the apology.
    GH: I still feel that only works if you have a “no-brainer” market as being in wine country or whitewater/ski country where people will flock looking for rooms – period.
    Kit Being in the wine country isn’t a market niche. And it might not be a slam-dunk way of getting guests year-round. If there are lots of B&Bs in an area, they each have to differentiate themselves so that guests can decide which one they want to stay at. Guests are looking for an experience when they travel. It’s your job to state what your offered experience is so they can identify you as “their” place.
    GH: A variety of “market” will keep an inn in business for a long time.
    Kit: I totally agree with that. And I’ve seen innkeepers in all corners of the country create those reasons for people to come to them and keep them in business. As long as the reasons for visiting fit your style, then they’ll work for you. If you aren’t the Victorian lace and flowers, tea and roses sort, then don’t do a Victorian tea. I’ve had clients who were the beer tasting type, and I’ve urged them to work with that toward their success.
    Thanks for the dialogue.
    And, check out your listing on http://www.environmentallyfriendlyhotels.com, and let us know if we missed a green action you are taking. :~)

  4. Hi
    I know these articles were written and answered several months ago but this is an area I have been struggling with for some time. Defining my market niche. How would I know? I am new? Why did I do this? These are the things I ask all the time? As I opened Dec. 1, 2005. And this place was really never a business (i know because i inherited the phone#and they are’nt ringing). Each time I have a new guest I learn something new about what I can do to improve.
    I determined what I would implement based on my likes and dislikes of my own stays in bed and breakfasts.
    My market I am not sure. Since I live in an area that attracts a lot of tourists the competition is there, I try to focus on the fact that my grounds have 2-1/2 acres with a pond. That although I am out of the city i am only 2 miles from the hub of the downtown.
    It also occured to me that the bandb’s in this area dont cater to the local residents, so i moved my former dining room into the living room sets up three individual small round tables, crated an open eating style so my guests can eat between 8-10. Also now I can hold small luncheons, christmas parties, company parties for groups of 30 or less. Since my research shows that this town is a mojority of small businesses I have made that some of my focus too. I created a couple of rooms that would cater to business travelers, a couple that catered to special occasion and 2 that catered to families with children over 10.
    All in all I guess I am just going to see where this takes me and be very flexible, teachable, coachable.
    I love this forum all of your input is helping me.
    Next i want to know how do i get the phone to ring?
    Peggy
    _________________
    Inn at Rooster Hill

  5. You’ll get the phone to ring when you get the word out they you are in business. The website is a good start, but you should also advertise in other places. Keep doing the service to the community and watch the business grow.
    To help you determine your market niche you really need to understand your different personality aspects. We all have different sides to us, and other people share those traits. You may like classical and country western music, tea and wine, and brie en croute. You want to attract guests who share those same interests because you’ll relate to them well and be a better hostess to them. As you know what kind of people you want to attract you’ll also be able to determine what kind of experience you want them to have, so you can talk about the guest experience you offer from that perspective.
    You can’t be all things to all people, so figure out which people you want to be most things to, and go for it. It helps a bit that the business doesn’t have an identity because you don’t have to change from one thing to another; you can change from “nothing” to “something”.
    This isn’t an easy task, figuring out your market niche, but it’s vital. You’ve heard that projects are 80% preparation and 20% effort (or is that 90 and 10?), and this exercise falls into that break down. You’ll spend a huge amount of your time figuring out what you want to be, and a small amount of time implementing the plan — and then you’ll reap the benefits for years.
    Does that help? Enough?

  6. Sometimes finding a niche is about really knowing your area and then reflecting on what is popular or attractive about the region. It might be wineries, it might be hiking, …weddings, ballooning, peace and quiet, night life…
    Once you find what’s attractive about the region, you can align yourself with that and market the two things together. It helps if you can become very knowledgeable about the topic (whatever it is), then you can really see how to market the niche effectively.
    _________________
    Steve Wirt
    Wine Country Cabins Bed and Breakfast in the Finger Lakes
    and Inngenious Bed and Breakfast Website Promotion

  7. Steve, I agree that knowing what brigns people to your area helps you undrestand part of your market, but that doesn’t totally affect why people come to you.
    In Colorado, being in a ski area pretty much means that people coming there in the winter are skiers. But if there are 24 B&Bs in the ski town, then how will guests choose one from the other? Niche or Brand. What guest experience will people have at the different properties is what it’s all about.
    I see in article after article in various lodging magazines that though travelers are price sensitive, they are willing to pay for value and experience. Each property has to stand out to attrect the guests they need for their business and personal satisfaction.
    If you are the only B&B in an area maybe a Brand or Market Niche isn’t critical, but if there is any competition you have to stand out te thrive. And I’d even bet that being the only B&B in the area means you have to have a Niche or Brand.

  8. thanks guys for the input. Like i said before this area is so diverse that finding your niche is hard – there is skiiing in the winter – boating – kayaking – shopping – eating my gosh the list goes on and on – now there are so many wineries that we have a wine and chocolate tour over the weekend before valentines day. i need to be watching the local calendar and staying in touch about 6 weeks ahead of time with whats coming up. I struggle with marketing to other websites and they dont answer me back. I think that i am probably more agressive at marketing than most. Maybe i shoud learn how to cook ha ha ha
    thanks again. When you can define niche marketing where do you advertise and what do you say. I am now trying to write some ads i dont want to place them here locally but thought i should try the seattle – portland area as this is a 2 hours from seattle and 4 hours from portland. who do i contact without having to pay a pr person
    thanks again
    peggy
    _________________
    Inn at Rooster Hill

  9. You need to be looking further ahead than 6 weeks. Ideally, you’ll have a year’s worth of information available so people planning ahead can plan accordingly. Many of us plan more than 6 weeks out.
    Again, Market Niche isn’t what brings people to an area — in my lingo — but is the experience that you offer your guests. It includes the service, the food, the quality of sheets and towels, the decor and music too. It’s your style, your heart and your soul. Your market niche is possible anywhere in the world you choose to operate. Some of the service options will change from location to location (you don’t need a boot warmer on ski storage space in Florida, for example), but the experience won’t change.
    Have a good time. This isn’t an easy task because it involves so much introspection, something you don’t have lots of these days.
    Networking with other innkeepers is valuable. Have you joined any of the local or regional B&B Associations? Are you a member of the local/regional Chamber of Commerce? Have you joined any visitor’s bureaus? These can be great ways to stretch your dollar and reach people you might not otherwise reach.
    If you have developed your site well — and Steve can help you with that off-list with his web services — your site will be found by those wanting your location and style. And you may have to buy advertising in areas you want to reach. The web doesn’t replace traditional advertising, it’s a major portion perhaps, but not the anly portion.
    Advertising should be at least 5% of your budget. As a new inn you probably should apply even a higher percentage of your budget so you can get the word out further and faster. One of the biggest mistakes I see in my consulting practice is that people don’t spend enough on their marketing. It’s the first budget item to enact and the last one to unplug — just as you close. If you cut your marketing money, you are cutting your business.
    Lesson: don’t be afraid to spend money on well-placed advertising and marketing — it will pay off by building business. Don’t spread yourself too thin; define your niche and only do business things that support that niche. You are one person, don’t try to be three people. You too only get 24 hours a day, and you shouldn’t be working all of them.

  10. Shawn, that’s a cute idea. I’ve seen similar approaches with cats and dogs, but not horses.
    I think that taking a clever approach like that makes a big statement about one’s market niche.
    Years ago I heard about a woman who couldn’t open a B&B because of zoning. But she colud have a dance studio and let her students rent rooms. So that’s how she approached her business and was up and running when I met her. (Her business was young enough it wasn’t clear how successful she’d ultimately be, but she was off and running — or dancing — at the time.)

  11. We have two B&B’s in our area that have gone with a bed and bale approach (though I don’t think they use that phrase but maybe they should). I think they do fairly well, though I am not sure how many of their guests actually bring horses. That’s the nice part about these niches, is that not all guests have to fully participate in the niche.
    _________________
    Steve Wirt
    Wine Country Cabins Bed and Breakfast in the Finger Lakes
    and Inngenious Bed and Breakfast Website Promotion

  12. I was once engaged to a woman who owned a horse ranch in Oregon, just off I-5 which runs north through Washington and south through California. An adjacent property had an old 1940’s farmhouse for sale and she was interested in acquiring this property and converted it into a B&B.
    Part of her business was apparently derived from ranchers, horse traders, and riders who traveled north and south on I-5 to attend various shows, exhibitions, and rodeos. Although it was relatively easy for people to find lodging facilities, it was difficult to find stables that would provide overnight stalls for the horses.
    The idea of a “bed and bale” made perfect sense – except for the fact that my fiance became much too domineering and I could see myself becoming the “hen pecked” husband. I literally “bailed” on the relationship on Christmas Eve and hightailed it home. (I think this was one of the wisest decisions I ever made in my life – even if it was a bit disconcerting to spend Christmas Day stuck at various airports).
    In terms of whether this particular bed and bale will be successful – it all depends upon the traffic in your area. The I-5 corridor was perfect given all of the shows held in Oregon, Washington, and California. If this facility is also located off a main road or highway that connects various shows, then yes – it could be a very good idea provided whoever is responsible for the horses knows what he/she is doing.
    _________________
    Inn at Elizabethville

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