When starting out, many small-scale and large-scale business owners tend to tag their products (generally!!!) to be perfect for everyone. Many businesses always get tempted in marketing their own products or services to everybody, despite the fact that at the back of their minds they know that it is such a broad market sector to begin with. This is one of the most common mistakes among business administration managers and owners- they tend to be generalists!!!! Instead of focusing their whole business and marketing strategies to one single area or slice of the marketplace, they try to be all things for people. This will certainly lead to failure since their marketing efforts and advertising tactics are just too superficial and spread just too thin. While they try to service a broad customer base, they will end up delivering mediocre products and services. In order not to end up a failure, you should know better and prioritize niche marketing when starting out!!
Although many entrepreneurs dread to tackle this, niche marketing is an important process (maybe the most critical step) in targeting your business to a certain market audience. Struggling business owners oftentimes can’t see the point of narrowing their market as they always feel that is very limiting and downright frightening. Directing or aiming products and/or services to a certain target market can be a difficult yet rewarding task for businessmen (you can check out previous post Business Strategy: Focusing Your Target Market). While you may think that it is much more fruitful and dynamic when you try to do all things to get as much business as possible, it can be counterproductive to focus on a niche market.
Importance of Defining Your Niche Market
You might be wondering what are niche markets. Actually, a niche market is a particular target market or group that have a specific need, want, or requirement. Within a larger industry, you can find a number of niche markets in it. Take for example, the automobile industry. Within that industry, you can identify and define several niche markets like sports car owners, SUV owners, bus owners, owners of vintage cars, owners of car spare parts stores, car repair shop owners, and so on. A niche market will allow you to define who you are marketing your business to.
Most of the time, your product and/or service will define your niche market. Let us say that you have developed a line of makeup. It is safe to say that your primary niche market is female. However, you should not stop there because it will only leave you to have a wide ground to deal with. Even if you have “female” as a defined market, you need to drill down quite a bit (what is the age group, what is the economic status of the female group you are targeting, what are the skin type of the women, etc.). This is so you can have a different variety of markets within an overall target audience. You need to remember that when you reduce down to a single area of expertise, the benefits of specialization of niche marketing will become more apparent and effective. Instead of believing what others think that niche marketing can narrow your sales or cut you into a profit margin, you should try to consider it as a component that gives you business power.
When you clearly identify and define your niche market, you will be able to see which slice of the marketplace that is willing to spend for your products and services. The most successful niche market is the selection of the untapped group of people who need to have what you can offer.
Niche marketing is significant as this will allow you to have a sharp eye on a distinct consumer audience and ultimately satisfying their needs. This will automatically mean that you are competing will a limited number of competitors, thus having the larger possibility of becoming an authority in that certain niche market. Marketing away from the mainstream will allow you to include fewer customers and target those who specifically want what you are selling.
Moreover, niche marketing will provide you an easy and less complicated process of determining where your marketing efforts and hard-earned money should be spent. A very significant example is internet marketing. In this age of modern technology and the Internet, businesses find the World Wide Web to be a great haven for advertising in order to reach their niche market. A well-defined niche market can help you to plan your internet marketing strategy to achieve success in marketing online. A common misconception of online marketing is once you have built it (website) your customers will come to you. You need to remember that you need to define first your niche market, focus your strategy online to reach this niche market, offer your products and services that they need, and get them to come to you.
The bottom line is niche market will help you to concentrate more on your target buying audience without being bothered by the rest. You are only focused on your prospects and center your efforts in delivering what they need and want. Now, do you see the importance of niche marketing?
Creating A Niche For Your Business
You should not stop by just knowing the importance of your niche market. No matter what type of business you have, it is crucial to create your niche in order to achieve maximum success. Again, the narrower your niche is and the more effective marketing strategies are- the more your business will soar high (Believe me!! Many entrepreneurs learned this the hard way!!). Always remember that niche businesses cater to highly-defined markets that are either often overlooked, underserved, or disenfranchised by large organizations and companies. It has never been easy especially for those small-scale entrepreneurs. But creating a niche for your business can make you the “big fish” in the small pond that will lead you to gain more profits while enjoying your unique passion.
First and foremost, you need to know exactly what your product and/or service is. You have to know what your product or service offer, what problems it can solve, whose life it can make easier, etc. If you truly know your product or service, it will lead you to your customers. By that, you will exactly know whom you want to serve and what you want to do for them. Keep your product and service simple. Your brand name, website, and marketing tactics should exclusively concentrate on the market slice you are targeting at. Focus more on selling your specialization and expertise to the buying audience you will identify and define.
Once you have carefully though of the niche you will be dealing with, you need to describe it or the area of your specialization. When you describe your niche market you should set a balance between describing accurately your marketing process so that your customers can understand it and the requirement to set you unique from your competitors. Together with this, you can achieve crafting your own playing field. This will help you to differentiate your business from the others while highlighting the benefits in your marketing.
There is no point in going through the difficult process of identifying and defining your business niche if you can’t actively promote it. You should be out and about!!! Let your prospect know that your business niche exists and that you are what they are searching for. You should play an active part in both creating your niche and creating the want for that niche.
Lastly, in order to achieve credibility, you have to reflect your niche in your marketing materials (brochures, posters, website, press release, etc.). This will let your prospects and competitors know that your niche exists and they should take it seriously.
Creating a business niche can be tedious. However, it pays off when you close sales and earn profits. You will know that the niche you have created is the right one when your prospects flock to buy your products or avail of your services since you set yourself and your business unique and apart from the others and you are exactly what they need and want.