What type of company are you running? To serve a niche, you'd better have a good idea what that niche is.

I USED TO hang out at a friend's house when I was growing up. A sign posted on his refrigerator read, "You are what you eat."

Recently I have thought about that sign quite a bit. It seems that in our industry, the realities of profitably doing business in the new millenium requires focusing limited resources on being a niche player. When I think about what niche to focus on and how to be a successful player in that niche, my mind drifts back to that simple sign on the refrigerator door, and its true meaning.

For PCB manufacturers, the axiom might be restated as "You are what you think you are." So, how do you want your business to be viewed by potential and current customers? One effective way is to use other easily identifiable businesses as your model. One colleague likes to use "household name" retail stores as his point of reference.

This is a good technique, as retailers are experts in niche marketing and everyone can relate to how different stores treat you and the varied quality and type of merchandise they sell. It often is easier to communicate your vision to your employees and customers if you compare your firm to a household name. (Retailers, restaurants and auto manufacturers have long been niche marketers, targeting specific consumers--by age or demographic or interests--and then tailoring their product and/or service to satisfy those customers.)

By employing this technique, we can see that Asia seems to be modeling itself after the large warehouse retailers such as Costco and BJ's. This means great pricing and good quality for high volumes with no-frills service. Because a large segment of the global market needs such a supplier, it is a niche.

But domestic and European companies seem to be grappling with where they fit in. Some are modeling themselves after Wal-Mart: basic items at low prices. Technical support is not their strong suit, but they surely want to get as many customers as possible to buy small orders with minimal employee interaction. Other such companies are modeling themselves after the high-end department stores such as Nordstrom or Saks Fifth Avenue. These companies offer a significant variety of technology and capacity but focus on high-end customers who need and value service, quality and overall capacity. There are few PCB companies left who emulate Wal-Mart or Nordstrom, but those companies are focused on their niches.

The majority of companies are smaller and model themselves in one of two ways: One is to follow the model of specialty retailers, the Brooks Brothers, Talbots or Orvises of the world. They offer specific technologies and/or specific order sizes, personalized service, outstanding quality, and an expertise or personality that attracts a particular industry or customer. These companies want to be the supplier of choice for a specific market or niche of customers.

The second group model themselves after the old More and Pop neighborhood stores. These companies offer very personalized service and a convenient location, but only a limited and usually lower technology, and so-so quality and service. These companies view their niche as being customers who want good old-fashioned value from a local source of supply.

The key issue is finding out how your customers view you vs. how you think you are perceived. The best way to find out what your customers think of your business is to ask. If you ask your customers to compare your business to a known retailer, it may be one of the most accurate ways for them to give you constructive feedback.

So, how does your business stack up? If you say, "I am a high-end specialty supplier and I think I am the Brooks Brothers of the industry," you'd better not offer old technology, so/so quality and mediocre on-time delivery. If you use a high-end retailer as a comparison, one that provides quality and service second to none, then you need to communicate to all employees that you expect your customers to be treated the way they would be treated at a high-end store. Equally you need to make sure your advertising, employees, and facilities communicate that you are high end.

That is what niche marketing is all about--identifying a customer type or market, tailoring your company to profitably best serve those customers and then communicating to the world that this is what you are. This is your focus--what you can be relied upon to do.

To niche market successfully means not only identifying a niche, but making sure that in every way possible you meet the customers' expectations. Then your targeted niche will identify your company as the one to do business with.

PETER BIGELOW is president and CEO of IMI (www.imipcb.com). He can be reached at [e-mail].