What is niche marketing and why is it important? Niche marketing is the conscious effort of defining the specifics of your target market in order to tailor your services towards them. In other words, it is simply your ability to identify and outline who your main customers will be and target your marketing efforts and products/services towards that group.
It is interesting that a lot of people go into business without a clear knowledge of whom their products/services will serve once they start their business, which accounts for why so many businesses fail to thrive. When you lack the sound knowledge of who you want to sell to and what you want to sell, how do you know who to approach in other to introduce, advertise or market what you do or what you have?
Knowing your target market has to be a deliberate thing that you will do to come to terms with your potential customers. Hence, you have to carefully craft your specific services, strategically, so that you don’t wear yourself out. Hence, you need to map out ‘your own people’ out of the entire global population as well as know the specifics and limits of what you will be selling them. In doing this, you have to consider what type of business you do, what products or services you want to deliver, whose problem will your product solve? Who will be paying for your products/services? What part of what region do they live in? What age range, why will these people want to pay for your product/services, etc.
Another common mistake in defining your niche is drawing out customers who are vague and rather too large. For example, if you sell women’s lingerie and because every woman definitely has to wear one, if so, you then decided that your target market is ‘women ages 16-60’. This target market may be too wide and you can never find a strategy to effectively market your products. To niche your market and capture your ideal customers, you need to break down the demographics of who you specifically want to sell your products to, based on the quality, styles, size range and a few other technicalities affecting your product chain. A better way to niche your market will be to say, “creating lingerie for college and university students”, or “lingerie for young executive women”.
Here are four important reasons you should niche your market:
You cannot afford to sell to everyone: You will be putting too much pressure on yourself, trying to serve everyone. Instead of assuming that you can potentially sell to everyone, it will do you a great good to specialize your efforts, products /services towards a certain group which you can concentrate on and tailor your products/services towards. As you work hard mapping out your specific market, you will soon find out what is important to them, what makes them do certain things and why they are who they are.
Ability to create your identity: By defining your niche market, you will be able to create an identity for you and your business, which will help you better position your business effectively. With your identity, you will pave way for people to understand you for what you do and what you and your business stand for.
Focus: With your specific market in mind, you will be able to focus and create solutions specifically meant to solve their problems, and as you do that, your attention grows and enhances the quality of your products/services.There will be less competition, as you provide specific services or create specific products for specific people, in a specific way. The BIG advantage of that is that it can’t be easily replicated!
Easy and effective marketing: Niche marketing will help you target your potential customers and help you create marketing strategies that will be highly effective because you know who you are communicating to and how best to get your messages across to them. People with similar interests behave and are attracted to similar things, so it’s easier crafting your marketing mix.