What is Niche Marketing?
A niche market, also known as macro marketing, is defined as the marketing efforts that are confined into one well defined segment. It is basically the subset of the market on which a particular item is focused. In it, the product is introduced in the market which aims at satisfying particular market needs of the customer, the price range, production quality and other demographics.
It is a small market that keeps concentrating all marketing endeavors on a small, well defined segment of the population. Niches are created on the basis of needs, wants and requirements. Once the niche market is developed, companies can deliver goods and services.
Fewer Competitors in Niche Marketing
It is a very concentrated form of marketing and unlike some different types of marketing that target a large group of customers, it focuses small segment of the market. The benefit of niche marketing to the organizations that focus on this segment is that it opens the success opportunities.
The success opportunities are due to the fact that those market segments are not targeted earlier or poorly targeted. When any company focuses that segment, it opens doors of success. The businesses never target the segment without any research. First, the needs and wants of the customers are analyzed and that companies tailor a campaign to a niche audience. Advertisers that create a niche have ability to create a personalized campaign with greater appeal.
It is the competitive era where rivals are strongly competing with each other. The benefit of niche marketing makes the competition low. As the market segment being focused usually is unserved with limited barriers to entry.
It is also a good opportunity for new businesses as small companies are not aware that the niche exists. On the other hand, large companies don’t bother to spend their time in a small niche. It helps niche to develop and companies get a better position in the market against the competitors.
There are two basic markets where you can sell the products and service, consumer and business. As a business owner, the more narrowly you define your target market and focus it, the better it is. These focuses in a particular segment or niche can a key to success for smaller companies, new companies and larger companies.
We have the examples of various companies who gain success in the market through niche marketing. Wal-Mart and Tiffany are both retailers. They have different niches through which they gain success. If you are looking for a niche market to start, there are some basic things that you should keep in mind.
Specify the target market first and understand with whom would you like to do business? Whether it is a partnership or proprietorship? Identify the geographic range and target market. Target market includes the customers or businesses.
- Specifically make a focus on what do you want to sell. Specify the needs and wants of the target market. A fruitful business Rule says: “Do unto others as they would do unto themselves.” When you take a look at the world from the perspective of the customer, you can recognize their wants or needs. The most ideal approach to do this is to talk to the customers and identify the concerns of them. You can use various techniques like questionnaires or other techniques to know their needs.
- Once you allocate the target market, their needs, your niche should begin to take shape. Gather the ideas to create something new.
- In this stage, you need to assess the overall plan. Evaluation is important to understand whether your niche needs any improvement.
- Once the product or service you are going to offer is ready, test market it before selling the product or service, give people the chance to buy it by actually putting it there. You can offer the sample. You don’t need to spend a huge amount of money on that.
- In the end, implement your idea by entering the market. This is a difficult and risky stage, but if you do it well, there will be only a calculated risk.
Benefits of Niche Marketing
There are various benefits of niche marketing. If you narrowly focus the target market, you will be able to service your clients in a much better way. Once you focus on a small market segment and their needs and wants, you will get the most benefits of what you have to offer.
The successful companies use niche marketing. Even if you are looking for an online business platform, niche marketing is the best choice. In niche, you don’t have to spend a large amount of money in advertising and marketing because of the shortage of competitors.
The affiliate marketing is the internet based niche segments of larger markets. Niche websites can be developed to serve a targeted customer base, giving the affiliate a continuous source of revenue. Some niches become saturated with the increasing competition. It is best to find the smallest and undiscovered niches.
As there is much less competition in the niche market, you can be number one in a small market. So if you want to avoid going in direct competitions with the elephants that have a strong position in the market with tons of money, and the best experts and designers, it is better to choose a niche. They make a generic product that targets everything and everybody.
Like MS Office, or like or ERP frameworks. When you are focusing on one specific group of people, you can forget the general product features and focus on the specific features that your niche is focusing. With this specific market, you will be the elephant as large competitors will not compete with you.
Niche Marketing Examples
There are many businesses that adopt a niche marketing strategy. They do it by specializing in a particular area and a well defined segment. For example, there are many training experts in America who teaches how to generate referrals to the financial planners. This is the specific niche.
The Fitness Niche
The fitness niche is the popular niche market that incorporates a wide range of topics. It includes six pack abs to losing body fat and is a very profitable niche. This is another profitable niche, in light of the fact that with a specific end goal to learn fitness technique, you have to purchase the product. Consequently, the market is accustomed to buy the products. If you get into the fitness niche, you have the chances of getting profits.
You don’t have to be specific in these niches. You can start by fitness guides for mothers at home instead of starting with ‘fitness’ only.
The Debt Niche
Another niche example is the debt niche which can be a little complicated. You provide customers a system for getting out of debt and so they will make an investment.
Some of the retailers are operating as niche marketers. They would offer various products that the customers find it hard to find somewhere else. So these retailers target the product or service and create a niche.
Various engineering firms would also be niche marketers. Some of these organizations would start focusing the issues and specialize in providing the solution to the particular problem.
For example, they specialize in removing underground water form large construction sites. Mostly the other engineering firms do not provide this service. Or they can design certain types of machinery or tools.
Some non-traditional schools and other training institutes could also be considered niche marketers, for example, the Montessori educational system which can be found in few countries. It is the form of natural learning and this kind of educational system focus on the small proportion of parents and it is the best alternative for parents who do not want to send their kids to the traditional educational institutes.
Another good example of niche can be the wealthy estate owners who have the organic plants or eco-conscious landscaping. The landscaper provides basic lawn service but his niche is wealthy estate owners.
Starting niche marketing is relatively easy and cheap. You can target your audience and you know where they are, what they do, their needs and wants. That’s achievable rather than targeting a large target audience and understanding their requirements.
Niche marketing strategy helps in strengthening your business. Your niche marketing strategy should include marketing to your niche, marketing to your niche and target audience and marketing your target audience from the standpoint of your niche.
As you target specific customers, so having a small customer base has its own benefits. You can nurture your relationship better with your customers; can have personalized e-mails and your follow up can be more diligent. By being the niche marketer, it gives you an opportunity to become an expert or leader in your area and strengthen the reputation of your company.