Although your small business can’t compete on equal grounds with a large business, it can definitely be as profitable and as successful, well at least in terms of ratios and percentages. At any rate, niche marketing is perhaps the most effective way for your small business to succeed. With the limited resources of your enterprise, your only way is to focus on a small segment of the market, particularly that which has been untapped.
Meeting the Needs of a Niche Market
Niche marketing is all about capitalizing on the unmet needs of a particular demographic. It’s not a very difficult or complicated strategy. In fact, you only have to determine a single need or a few related needs of a particular group of customers. For example, stay-at-home mothers who need arts and crafts supplies for their hobbies, which may include baking, knitting, stitching, painting and the like.
Niche marketing is a sub-technique of differentiation-focus strategy, wherein the business focuses on the customers’ special needs and wants. If a particular product or service needs to be adjusted to meet those special needs, do so. Such market may be a specific group of people with distinct or exclusive preferences such as ethnic groups, single parents, antique collectors, and the like.
The basic challenge with such type of marketing is finding a niche market that’s available. Understand that you are targeting a small group of people, and it becomes very easy for that market to get saturated. You need to find a market with unmet needs, and if there are existing businesses catering to those needs, see if there’s room for your business to compete. At any rate, if you are effective at coming up with a really enticing offer, then you could become the main choice for your target niche market.
The Main Concepts of Niche Marketing
Before you decide to use this strategy, make sure you understand the requirements for planning and implementing niche marketing. First, you need to have a unique product or service tailored to meet the needs of your target market. It takes a good understanding of your market to determine what your customers truly need, although sometimes those needs are pretty obvious. You must then create a product or service that sets apart from competition, something that’s not commonly available or has distinct features.
It’s not enough to just come up with a unique product. Your offering must be compelling. That’s why the strategy is called niche marketing because unless you have a marketable product, no one is going to buy it. There are plenty of unique products out there, and yet they don’t sell, why? They’re just not practical to use. Again, it all boils down to meeting the needs of your niche market. So, come up with a unique and marketable product.
Now that you have a unique and marketable product, the next consideration would be to advertise it. Most niche markets have their own way of doing things. In other words, they have a culture of their own. When marketing your product to them, make sure you say the right things. This simply means you tailor your advertisements and promotions with consideration for your market’s exclusive preferences.
Finally, test-market your product. This is especially a must if you’re a new entrant. You need to position yourself effectively against existing businesses or rivals. It helps to review your competition’s marketing strategies for your reference. Do not worry about a few competitors, because this just means the market is a healthy and profitable one. But do test-market your product to see how well it’s received by your target niche market. This is to make sure you don’t waste so much money marketing a product that doesn’t sell.