Niche Marketing means to concentrate all marketing efforts on a small but specific and well defined segment of the population. Niches are “created” by identifying needs, wants and requirements that are available within your market (BusinessDictionary.com).
This is usually a group of prospects that you want to target not only because you will be successful at reaching them but because your competitors are doing a poor job of reaching them, leaving them available to you.
This piece will focus on what I found to be the top 4 niche marketing techniques, why you should use them and how to choose your niche market(s)?
Finding the “Sweet Spot” of Your Target Market
When it comes to Niche Marketing, you need to find that sweet-spot of your target market and hit it hard. Once you can resonate with your desired market, you will truly be in. The four top Niche Marketing techniques I found most applicable are:
- Listen To Your Consumers – Traditional advertising campaigns don’t typically work with niche markets. They’re usually too expensive and don’t target the market precisely enough.However, with consumer focused strategies in place you are sure to win over your desired market. Just like an actress waiting for a review after a movie, you need to be looking and monitoring your online content for comments and feedback. Take the time to truly listen to what your consumers and prospects alike are saying and sharing socially about you online.
- Control Product And Distribution Cost – Selling a high volume of narrowly targeted products may seem like a really bad idea or maybe a nightmare for your team. Even though you will be offering a wide range of products to very specific markets there are still ways to control the costs to produce and distribute them.Find similarities in manufacturing between products and streamline when possible. It is also realistic that you will be able to work your production facilities to full capacity and not have the waste that other single product or lower inventory manufacture plants may have.Distribution costs can be kept down as well by offering options like on-demand production, flexible inventory allocation or selling directly from a company’s website and ultimately eliminating the middle man. Keeping the costs down across the board will allow you to offer more of a niche product.
- Meet Their Unique Needs – In order to be considered a niche marketer, your product(s) must offer a special appeal to your niche; what are you offering them that is compelling? You must be able to identify the unique needs and present them to your potential audience. Look for ways to customize your product or features to meet them.Begin by taking your main product and deciding which variations of it are possible and which needs they may meet. By taking your “standard” product and customizing it to fit an entirely different group of people, you are providing a new niche which you can meet the needs of.
- Always Test Your Desired Market – Before moving too far ahead you will need to test the waters a bit. You will need to assess your current competitors and the competitors in the niche you are moving into. Decide the strengths and weaknesses of these competitors and aim higher. Competitive research is very important to making sure that you stand alone in the crowd you are joining.
Why Should You USE Niche Marketing?
Though Niche Marketing isn’t for everyone, there are many benefits to using it as long as it is indeed a good fit for you. With that said, one of the biggest mistakes business owners make is trying to offer their product or service to everyone instead of focusing on a smaller group. Some may think that if they limit their audience, they are automatically limiting their sales. This is not the case.
By getting your product in front of the people that are more apt to purchase it, you are not only going to generate more sales, you are going to get noticed. Once your product is in the right circles and with today’s popular internet marketing techniques like social media, it will get shared much faster.
How Do You Choose Your Niche Market?
Choosing your niche markets is not something you just come up with quickly. It takes time and research. Come up with markets you think may work; then brainstorm further and research before you make a final decision.
Some simple ways to streamline your list is by looking at your main competitors, see what they are and are not doing. Decide if there is a reason they aren’t penetrating certain markets or if there may be a way to capitalize on the gap that exists. Once you think you have your market figured, continue your research further.
Look for further potential by visiting possible outlets and researching your prospects further; visit department stores (if applicable), search online for a current or potential presence, review topic related articles and magazines, listen to what current customers are asking for, etc.
Niche marketing isn’t something that develops overnight, it typically takes a good amount of time to establish the absolute perfect approach. However, once you are able to adapt and transfer your business to highly sought out niche markets, you will begin to see the profits you’ve been seeking.
“Everything should be made as simple as possible, but not simpler.” – Albert Einstein