Niche marketing offers many advantages in terms of less competition but locating
a profitable micro niche can be even more beneficial to online entrepreneurs. Simply stated a niche market is merely smaller and more specialized segment of much larger market. When you locate or define an even smaller segment within the niche you are now on a more 'micro' level and thus the name.
Let's have a look at 5 definite advantages online entrepreneurs enjoy promoting within the smaller and more defined segments of a niche market.
Specializing vs. Generalizing
This automatically shrinks the level of competition you face. Working within a more defined market thereby increases your focus and as a result your value to your customers.
The Growth of Your Reputation
There is something to be said for being the big fish in the small pond. Customer focus upon you is more concentrated due to the lack of competition. As a result your reputation as an expert becomes more noticeable and therefore grows more quickly.
Smaller Markets Allow Greater Focus
Smaller more highly define markets allow greater focus on any trends that develop or opportunities that may arise. The 'scattershot' mentality that normally exists in a larger and more generalized market tends to make it more difficult to notice the smaller details.
Word Travels Fast
Within a smaller community with a more specialized focus trends become easier to identify and therefore your response time is much faster. The result here is that your ability to adapt and change at a more rapid pace will allow you to better capitalize and much earlier, on any new opportunities.
Accelerates Relationship Building
Based upon sheer numbers it is much easier to become more closely acquainted with a smaller group as oppose to a much larger crowd. The frequency of contact and/or interactivity increases which results in breeding a more rapid growth in familiarity with each other.
The obvious benefits of focusing your niche marketing efforts within a micro niche are hard to deny. Online entrepreneurs can limit their competition and increase their profits by further dissecting the niche they are in for additional promotional opportunities. The advantages to doing this as we have discussed above make the extra effort in researching these possibilities well worth it.