Defined as channelling all marketing efforts towards one well-defined segment of the population, niche marketing is a very concentrated form of marketing. Marketers identify the niches to target by recognising the needs of consumers in specific segments and then providing special offerings. Efficiently tailoring a marketing campaign to a niche audience is extremely important. Now one important thing to comprehend is that the ‘niche’ does not exist, but is created by using smart marketing techniques and identifying the targeted audience.
What makes a ‘Niche’?
Every market can be divided into different segments based on different factors and preferences. Some of the ways to define niche are –
- Demographic base which includes age, gender, income and education level.
- Geographical niche markets are based upon the location of buyers.
- Psychographics niche markets include interest, values, needs and attitudes of consumers.
Benefits of Niche Marketing
1. Increased Profits
Niche businesses are often high margin business. Customers do not mind paying a little extra because they are only able to get that service in that company or under its brand.
2. Greater Trust and Credibility
Another benefit of niche marketing is the strong relationship with the customers because of the fact that the company operates in a small segment, the relationship between the company and the brand becomes stronger which is also a key to customer loyalty. As you gain experience in your specific marketing niche, you start to develop a reputation as an expert in the field.
3. Reduced Competition
There is no or little competition under that segment. The company is virtually the market leader and enjoys price monopoly. Once you are seen as an expert in your field, it’s easier to get more of the same types of customers. You have a clear sales advantage.
4. Word-of-mouth marketing gone wild.
It’s easier to get quality referrals when you have a niche, mainly because a niche market lets you build trust and credibility as you work on gaining awareness for your products and services. The end result is that you come off as the best in your field.
Disadvantages of niche marketing :
- Not suitable for small-scale companies:
Due to smaller segments, niche marketing approach is considered to be inappropriate for smaller companies and intends to expand in the current market. Smaller markets make it a bit difficult to reap larger profit margins within the market.
- Chances of survival may fall:
Chances of a firm’s survival may decrease if its marketing strategy is solely based on niche marketing.
- May not be suitable for longer-term:
Niche marketing ideas may not be suitable for long-term marketing strategies. This marketing approach may not deliver adequate business which can result in reduced profit margins.
Examples of niche marketing
The concept of niche marketing is best understood by bloggers. What happens is that a particular blogger identifies a particular topic that has a very specific audience and chooses to target that audience instead of targeting everyone. For example, a blogger that writes about only shapewear.
2. Some modern schools
Some modern schools fall under the category of niche marketers pretty well. A case in point is the Montessori school system, which specializes in natural learning, nothing else. Though this type of school appeals to only a small fraction of the population, they’re the only alternative for parents who don’t want to enrol their children into the structured, conventional type of schools
3. Physical Therapist Niches
- Victims of stroke who have lost their motor skills or mobility
- Runners who are recovering from panthers fasciitis
- Initial responders of office-related back injuries
Who Uses Niche Marketing?
There are various companies who are using niche marketing strategy in their marketing campaigns. This type of marketing strategy is very useful for small businesses with very limited resources.
Also, those products or services that are targeting a specific segment of population can use niche marketing strategy. Bugatti is using a niche strategy and targets a very small segment of population. Bugatti segments its market on the basis of high income and western countries like France, Germany etc in short the ultra rich people.
Niche Marketing Strategies to Employ
Focus on meeting the specific needs of your customer.
Start by asking yourself “what’s distinctive and appealing regarding my idea?” this may assist you determine the particular wants of your potential market base as you’re employed to form your business the answer they’ve been searching for.
Speak an equivalent language as your customers.
You should be ready to mix in, speak an equivalent language as your target market, or translate your complete values and edges into one thing that everybody in your niche promoting cluster understands.
Test the market
It’s necessary that you just check your market before you invest an huge amount of cash on that. Use on-line advertising like Google Adwords and Facebook ads to check landing pages and products offerings for a awfully fine-tuned demographic and find feedback within the early stages from those customers and potential customers so as to develop a product that gives a real benefit to them.
How to build a website for your niche business
1. Brainstorm Niche Ideas
The first step to building a successful niche website is picking a niche to target. This just means, what general topic are you interested in or even better, what can be profitable?
2. Begin In-depth Keyword Research
Now that you know what general niche you want to go into, it’s time to do more in-depth keyword research.
If you can target a few low competition keywords, you are much more likely to rank than if you were to target highly competitive terms. This means that you will often need to target very low search volume keywords…and that’s just fine!
3. Determine How Your Site Will Stand Out
- What is the overall goal of your website?
- What problems are you solving for your readers?
4. Pick a Good Domain Name
Some people spend much too long trying to come up with a good domain name. However, the reality is that just about anything will work.
I recommend that you do NOT worry about putting keywords in your domain name. The days of using exact match domains are long gone. You will do much better with something memorable and brandable.
5. Host Your Website, Pick a Theme, and Logo
A web host is simply server space for your website.
A theme commands the look and style of a website. It consists of things like font types and sizes, colour scheme and other style elements that affect the look and feel of a site. Briefly, a theme of the website reflects the identity of your brand and helps to develop the customer experience
Logo is the embodiment of your company. It’s the true essence of Brand’s Identity. Brand’s are often recognized by their logos. It’s the shortest but most the efficient method to create brand value. A good logo can give your brand an identity and helps in market recognition.(Read here : The importance of a logo!)
6. Develop a Long Term Content Strategy
These ideas are what can take you from having just a so-so website to having a great website that helps you stand out as an authority.(Read here – Why you need a content strategy)
Content strategy has evolved way beyond printing ads. What you need to do is-
- To curate a strong online presence across social media channels
- To Schedule blogs for posting
- To cover topics that interest your customers and that provides them with a reason to return to your website.
- To draft a documented content plan
7. Draft a marketing strategy
A market plan addresses the following three questions – Where are we now? What is our goal? How are we going to achieve that? In an attempt to answer all these questions, comprehensive research is conducted and accordingly the market strategy is designed and executed
Marketing strategy is a futuristic approach that involves ideation and execution of a plan in order to promote and sell the products or services. It can be a long-term or short-term plan which totally depends upon the nature of the business. There are many factors that are taken into consideration while planning a marketing strategy including the analysis of the competitors, evaluation, and selection of market.
8. Use Social Media Marketing.
Being online is the way to go. Increase in online shoppers in the past few months has led to an increase in online penetration of retail groups to 65% with around 53.4 million visitors per month and an annual growth of 15%. But, even if the rest of the 35% retail is not online, a higher percentage of them is using social media platforms as an online channel for their businesses.