Niche Marketing is the act of segmenting the market for a specific product and marketing intently to a small subset of the market, rather than pursuing a smaller share of a larger market.
A niche market is the subset of the market on which a specific product or service is focusing. The market niche defines the product/service features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact. It is also a small market segment.
Every product or service can be defined by its market niche. The niche market is highly specialised, aiming to survive among the competition from numerous super companies. Even established companies create products for different niches,
Online niche marketing
An often used technique for affiliate marketers is Internet-based niche segments of larger markets. Niche websites can be developed and promoted quickly to uniquely serve a targeted customer base, giving the affiliate a small but potentially continuous source of revenue. This technique can then be repeated across several other niche websites. A wider niche is harder to market as the expense of online advertisements increases according to the popularity of the keywords used (on Adwords and YouTube, for example).
Some niches may become saturated with marketers, increasing competition and thus reduce the slice of the pie available to each competitor. One solution is to find smaller, “undiscovered,” but still profitable, niches, usually by searching out the best keywords to target. These lower cost keywords are called long-tailed keywords, as in the long tail of secondary keyword phrases that usually follow the main keyword in popularity of number of searches conducted by internet users. Because some are so obscure as to have few or no clicks per month, the trick is to find the right ones to target.
Niche marketing refers to finding a segment of consumers from the general market a carving them out by establishing a specific product line that provides solutions that cater to the needs of that segment of the market.
What are the benefits of Niche Marketing in your online business
No matter what your business, niche marketing gives you laser focus to reach target customers
Most business owners want to broaden their market, reaching as many potential customers as possible. However, trying to develop a message that appeals to everyone is nearly impossible, so making your target too broad means missing your target altogether. That’s why niche marketing is a strategy that works for any business. If you have a laser focus on a well-defined target market, you can build a loyal customer base, especially when marketing online. Here are seven things to build your market niche:
- Define your niche: Identify an area of expertise or specialisation within your target market. Determine where you expertise or passion lies and use it as a focal point to define your market niche.
- Identify your target customer. Determine who your target customer within your niche is. Who needs your expertise? One way to identify your target customer is to use marketing personas, identifying what characteristics make up your ideal customer. What demographics best describe your target customers – age, income, related interests, lifestyle, etc. For B2B customers, what job title or role best describes your ideal customer? Are they in sales, manufacturing, IT, fulfillment, customer service, or some other role? Are they line managers of executive management? Who makes a buying decision about your product or service?
- Solve their problem. Once you have identified your target customer, identify their points of pain or the problem you can solve. If you’re selling to consumers, does your product make them feel good, provide a convenience, alleviate a problem? For B2B customers, does your product or service help customers make money or save time and money?
- Be an expert. Now that you have identified your target customer and their points of pain, show your niche expertise. Use your niche marketing program to illustrate why you know more and are more trustworthy than your competitors. Email campaigns, social media, blogs, and other content marketing mechanisms are an ideal way to show you know your stuff. Differentiate yourself with a fresh angle
- As part of your niche campaign, see of you can add a different perspective to your marketing message. In the case of our Toms Shoes example, their One to One campaign gives them a unique niche with social responsibility. What hot button issues resonate with your target customer? Use them to refine your message.
- Laser-focused delivery. Once you have a message you need to deliver it to your target. Know where your customers hang out online. For example, consumers may respond to a Facebook campaign, but B2B customers respond to LinkedIn posts. Pick the online outlet best suited for the message.
- Build your following. Share insight and information within your niche, and make the information interesting so your followers will share with their followers. That’s how you use your expertise to build your online network. And online followers usually become customers.
Building a niche marketing campaign delivers a targeted message that allows you to attract a smaller but more loyal following. If you speak directly to a smaller group of influencers, your chances of dominating your market niche are greater than trying to appeal to the mass market.