So What Is Niche Marketing?
In this post we are going to talk about what niche marketing is. We will explain exactly how niche marketing works. By the end of this post you will understand how Niche Marketing can help build your business.
FACT: Every business wants to be recognized by the product or service it sells. The primary goal of Niche Marketing is to put your business at the top of the customer’s mind. Used correctly it can position your business as a trusted brand for a specific category. With the stiff competition around, every business wants to position their company in this way. The great thing about Niche Marketing is that it does not matter if there is already existing competition; With strategic niche marketing, you can become a top trusted brand even in a saturated market.
You can rise to the top
Things change rapidly online. This means that all businesses, whether they are newcomers or they are already a ‘go to brand’, must all constantly strive to keep ahead of the competition. Newcomers and business who have not yet become well known can rise to the top; And those who are already at the top must keep on performing effective strategies to help hedge their position. In a business where competition thrives, the dynamics constantly shift. However, as a newcomer it will be hard to enter a niche market where there is already large and well established businesses.
Benefits of Niche Marketing
Big and small businesses alike can benefit from niche marketing. Businesses can cater to a specific customer segment that has not been focused on by other products in the same category. As such, newcomers who are competing against big businesses that have products or services that function in the same way – or even better – than a newcomer’s product or service, can still find customers by focusing on a specific niche for their product or service. By doing this, they will be the first product or service in the mind of the people in this particular niche – even though there are many other products and services that can do exactly the same thing. The idea here is to advertise how the product/service provides a solution specific to this niche market.
What is Niche Marketing – a definition
Niche marketing is, by definition, referred to as the selection of an untapped and specific target market. A business can become this markets ‘go to brand’ by focusing on building the business within this segment. This is done by addressing a specific need within this market and highlighting a product or service that your business offers as a solution to the problem.
Niche Marketing is Powerful
Done right niche marketing is extremely powerful. A business can find customers by focusing on a solution their product/service provides to a specific market; Even if there are millions of other products or services that do the same thing but do not advertise that they solve this specific problem. As a result, even if there are big players with similar products or services, the new business can still thrive by targeting a specific solution within a highly targeted market where their products/services can be offered as a tailored solution.
Niche Marketing works both Online and Offline
Niche marketing works really well for both offline and online business. Competition is often much worse for online businesses than offline businesses. As such, the need to be able to create a marketing niche is important in order to be able to grow an online business.
Without a specific niche to focus on, it is much harder to make money; Especially if there are already well established businesses, products or services competing within the market.
An Example
To give an example on how niche marketing works, let us take for example that you sell accounting software.
There are many competitors out there and as you are new and unknown, no one is willing to give you a chance. After doing research, you notice a gap in the market with relation to Start-Up businesses.
You go through many of the issues Start-Ups encounter with accounting systems and realize that your accounting package (as well as many of the other accounting packages available) actually cater really well for this market.
Taking all the ways an accounting package assists Start-Ups you point how your system is tailor made to solve these issues; This showcases your accounting package as the perfect solution for Start-Up businesses. By positioning yourself this way, you become known as the perfect accounting software for start-ups.
It does not matter that other accounting software can do exactly the same thing; By putting your products solution to a specific problem in front of Start-Up businesses, you will make more sales.
By focusing on a specific market, you will also save money in advertising. Instead of trying to compete in general advertising mediums alongside more well known competitors, you will instead focus only on advertising mediums that will get your Start-Up business solutions in front of the Start-Up business market.
Don’t be a Jack Of All Trades
Too many new businesses try to be a ‘Jack Of All Trades’. They think that the more they do, the better their chances of survival. This cannot be further from the truth. Consumers will always choose what they perceive to be a tailor made solution over a ‘one size fits all’. Being seen as a tailored solution for a specific market is the key to successful niche marketing.