Niche marketing is like catching a fish. The angler knows exactly what the groundbait will catch. Because it has the right composition and consistency, depending on the species caught. Niche marketing thus stands in opposition to that targeted at mass audiences. Wide-cast nets will catch a variety of fish, not always the ones the fisherman cares about. The question is - which do you care about?
When creating a business, it's easy to think that the products or services it will offer can help everyone. After all, everyone needs a TV set or a hairdresser at some point in their life. However, it may quickly turn out that it is more profitable to narrow down your range of hair extensions. Or that only some tech-savvy people are interested in the giant flat screen TV with 8K resolution. And most customers do not see the difference and do not want to spend an additional few thousand zlotys. So maybe it's worth considering niche marketing. That is, the process of introducing a product or service to specific niches.
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What is niche marketing?
Niche Marketing is the name given to a marketing strategy that focuses on very specific niche markets. Its essence is to concentrate all marketing efforts on a small but specific and well-defined market segment, not on a smaller share of a larger market. Some people think that the SME market is a niche. They are wrong. The niche market focuses on a very specific and targeted segment of the population. Therefore, successful niche marketing employs a strategy that is very specific and targeted. Here are 5 tips to help you build a solid niche strategy step by step:
1. Define the needs of the market.
2. Define your specific target market and conduct research.
3. Understand your competition.
4. Stand out by conducting a SWOT analysis.
5. Run, test and customize.
Niche marketing and the buyer persona
If a company operates in a niche, it does not mean that all its recipients are clones. Communication strategy still needs to take that into account. Niche marketing is not as simple as it may seem. Suppose a company that sells cosmetics has narrowed down its business. Now it distributes only organic cosmetics and in the spirit of fair trade. Its customers will continue to be diverse. how is it? They may include, for example, people with high incomes, for whom price is not a factor and they are only interested in premium products. Best in 100% organic.
Clients like millennials may have tight budgets, but they want their money to go to companies that trade fairly and are committed to their values. There is also a group of people who would like to buy ordinary, cheap, drugstore products. However, they cannot do this. They are hypersensitive to the skin or allergic to chemicals found in many products. So they buy the more expensive, ecological ones, because they simply have to.
As you can see, the customers of such a company are completely different segments of recipients. Niche marketing still requires breaking down all of these audiences in order to run effective campaigns for each segment.
The benefits of running a business in a market niche
Being part of a niche market has many advantages. One of the benefits is less competition. This is because as firms become more specialized, they are less likely to be in direct competition with others. So it's no surprise that companies are always trying to identify the USP of a product that will rank them in a niche. By leveraging niche marketing they can focus on getting them target group received an offer that was perfectly tailored to her.
In turn, targeting more audiences means your business has to tailor what it's selling to a wide variety of audiences. These, in turn, differ significantly from each other, incl. demographically and psychographically. Companies offering services in niche markets will offer products or services that are really well suited to their customers. This is possible because they really understand their audience and offer them the value they expect. This knowledge makes it difficult to reach audiences outside of your niche, but it helps you build brand loyalty in the short term.
Niche Marketing - Pros and Cons
Niche marketing, thanks to operating among a narrow group of recipients, avoids competing with large retail brands and their marketing activities, public relations etc. The messages of the "giants" will not be directed directly to niche customers. Focusing on a narrow segment gives you better insight into the specific needs of your customer segment. Thanks to this, the company can become a specialist in the field of specific brands and position itself in it.
Gaining credibility in one niche market makes it easier to enter other niche markets. Niche marketing has a lot to show off here. For example, if a business sells specialty pet food, it could quickly open up to other related niches. By creating networks and promoting sites that focus, for example, on dog toys or training workshops.
On the other hand, niche marketing has to face various challenges. Primarily because it targets smaller markets. By definition, niche marketing serves a small segment of a single market. Paradoxically, this segment becomes even smaller as the company improves its product. Brand loyalty in these markets will work to the detriment of a business if its product is not yet popular. Niche marketing is also sensitive to market changes. If these appear suddenly, they can "sink" the niche overnight.
Niche Marketing - How To Do It Right?
Identifying an under-served community in a large market is a smart way to approach niche marketing. One company has found a largely underestimated community of people - those who use their left hand more than their right. As the 90% of the population uses the right hand as the "main" hand, left-handed people have had to adapt to a large extent to use "right-handed" products. Those who found it a great business opportunity created an online store. It sells products that are exclusively for the other 10% people. They offer them specially adapted office supplies, kitchen utensils, tools, etc. They have been successful in reaching this smaller, often ignored audience.
There are hundreds of companies that sell sweets and snacks, cookies, cookies and cupcakes. You might get the impression that everything has already been done in this industry, However, while most people may choose from dozens of brands to find options that suit their culinary tastes, not all of them. There is a group of people who cannot. These people have allergies or dietary restrictions related to animal products or nuts. The company that first noticed this underrated segment in the confectionery industry won a lot. She has created a brand that is aimed exclusively at this group of recipients. Niche marketing has been carefully planned. First thought? Selling cookies and cupcakes is not a unique idea. But selling them as vegan and nut-free options sets such a business apart in an already saturated market. It allows her to stand out and build a loyal customer base.
Worth knowing:
What is niche marketing?
It is a special marketing strategy focused on specific niche markets, the essence of which is to concentrate all involvement on a small market segment. The niche strategy is very specific and targeted.
What are the benefits of running a business in a niche?
The first benefit of doing business in a niche is much less competition. The services offered in niche markets are exceptionally well suited to the needs of customers.
What are the advantages of niche marketing?
Niche marketing does not compete directly with big brands and their marketing. A niche allows you to more thoroughly explore the needs of your customers, which helps the company become a specialist in meeting them. It is also easy to move from one niche market to another.