Niche Marketing The Golden Goose?
Definition: Niche Marketing, A marketing segmentation strategy in which the firm focuses on serving one segment of the market. This type of marketing is very much like segmented marketing, only the segments are smaller -- a niche is a small, distinguishable segment that can be uniquely served. Today the internet is so vast that one of the most critical requirements, for success is to find your niche market. Another way of saying it is to pin point your target market. By occupying a niche you do not have to compete with others solely on a price basis. Your product, service or message will be a customized for the specific needs and wants of the people you have selected as your target market. By so doing you can often charge more for your item. Ideally your target/niche market may not be able to easily find exactly what you are offering. How to get started , first you need to decide what product, service or message you have to offer and who you want to offer it to. This is commonly known as market research. You may think you need consultants and marketing gurus, but you can do all the research you need by just answering a few questions. Do you have an identifiable target/niche population with similar interests and needs? An example would be people who raise and show horses. This market could be further refined, by digging down. People who raise and show Shetland ponies in the northeastern United States. Some times a handy little software program can help you decide on a niche. A free program called choose it is available from a company called sitesell. Just click on the words choose it and you can let it help you make decisions on any subject and it's free. Is your target market/niche large enough to support your product or service? Will you have enough volume? Can you structure your product, service or message to meet the needs of that niche market? Is your niche market currently under served? Can you reach your target/niche customers in a cost efficient way? The more you specialize the more your niche market will begin to realize the value
of what you are offering them, because you are addressing their individual
needs. Information about your niche market is essential the more you have the better you can tailor your product to the market's needs. Demographics are very helpful. The age, lifestyle ,income, gender, education, marital status, ethnic background and family situation (newly weds, married for fifty years, how many children if any) each demographic fact presents a potential area for you to customize your offering. There is a reason why all those big companies are always trying to get people to provide them with information about themselves. Think of the super market, do you have a discount card you use regularly in the market or a card that allows you to use a check for payment? That card is the ultimate information gathering tool. When the card is scanned into the register, the company knows what you buy, how often you buy it, how much you buy and of course whether you use coupons or other discount offers. This gives them a good picture of their customers and their customer's desires. They can then add or subtract products based upon this information. The idea for you as a web site owner is to build a profile of your niche consumer. The more detailed the better and don't forget to keep the information flowing in. Once you are actually offering your product keep in touch with your customers. Ask them to tell you what they want, make feed back a primary part of your marketing efforts. If your customers are telling you what they want it saves you time and effort, so make it easy for them to communicate with you and if needed offer them something for free to entice them to share their feedback. So is niche marketing the goose that lays the golden eggs? and will you be able to harvest the golden eggs?, it all depends on your ability to find and exploit that niche. Follow the lead of companies that have done just that. Here are some real life examples. I live in the Northeastern United States ,so two of these are from my own area. The first is Nantucket Nectars, a juice company that makes and sells organic juices all over the U.S. and abroad. The next is the Vermont Teddy Bear Company, maker of custom teddy bears. Both of these companies started extremely small with ten or less employees. They kept focused on their target/niche customers and now are very successful. For a large Company example, Microsoft and Intel have recently announced they will target the home entertainment market. They are huge companies and that is a huge market niche but is there a niche within that niche for you? perhaps the best chair or sofa to enjoy the home entertainment center that Microsoft and Intel plan to develop.
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