subject: The Smart Marketing Strategy- Focusing On The Niche [print this page] Many businesses make the mistake of selling their products to the wrong market. A business, cannot be all things to all people. It has to be focused on a certain section, and the same rule applies to marketing too. Niche is the keyword here, that the businesses must build their strategies around.
As a business owner, you need to define and pinpoint your target market. You have to choose the markets you want to target and then serve these segments better than anyone else, as your top priority. Your approach has to be specialised and not generalised. And when it comes to choosing the niche markets make sure that they are both easily identifiable and accessible.
Figure Out Your Niche Audience
There is rule that often applies to most businesses, irrespective of their type. According to the rule- 80% of business comes from 20% of the clients. If you have not noted this before, then do so now. Run your numbers and you will see that it may stand true in your business too. This is a clear indicative that the 20% of your customers is your 'niche'. Now, this niche may be defined as the customers living in an area, belonging to a religion or in similar professions, what ever the common thread binding these 20% of your customers is, that is your niche.
The niche can further be segmented into groups, and each one may require a separate marketing approach. This special approach, crafted on the basis of their niche will seem like customized to the members of the group. You have to then understand what every target group in a niche wants from you, to focus your marketing effort on them. In other words, do not create a desire for your product. Instead, find where that desire and demand already exist, and then swoop in and present the party with your product/service in the most appealing way.
The Benefits Of Niche Marketing
If you have to summarise the advantages of niche marketing, it can be done in one way- you get large returns on sales and profits for a minimum of effort. This can be understood very easily- now, if you are targeting a specific niche, and are selling to that particular segment of the market only, then your advertising cost is reduced hugely.
Save Costs-You don't have to spend bucket loads of funds on more wide appeal ads, and in the long term, you raise your profits too!
Increase Income When you have a niche audience that turn to you before going to any other vendor, then it means, that people are looking for what you offer specifically. This means that over time if you increase the price of your product, they wouldn't mind paying for it, as you have become a specialist of sorts for them!
Stay Ahead Of The Competition If you are settled in your niche, the customers are hooked on to your products and services, then you can hold on to the customers by declaring yourself the leader in the niche. This will reinstate their faith in you.
Grab More Opportunities With a niche audience, you get a much better response time. This will leave you free to change quickly to the market demands, something that the big businesses cannot do that easily. You have the chance to catch hold of new opportunities and incorporate them into your business.
Niche marketing one of the really smart business marketing strategies that have high profit margins despite a limited reach, and also give you the platform to gradually and consistently expand into parallel niche markets.
