There, I said it: all marketing should be niche marketing. To some of you, this may come as a surprise. “Niche marketing isn’t scaleable, the market is too small, it’s not feasible…” you might retort. I beg to differ. Niche marketing is a great way to position yourself and stay fresh, no matter what your industry is or what your position is in your field.
Today I’m going to bust the myths surrounding niche marketing – and show you how to use the concept to its full potential.
What is Niche Marketing?
A niche market is NOT your “target market,” or even just a small subsection of a bigger market. The definition of a niche market is the subset of the market on which a specific product is focused. That’s right, half of what makes niche marketing work is your product.
Another surprise – one does not simply ‘find’ a niche market. A niche is created. You create a niche when you find the perfect product/service to satisfy a specific, unsatisfied need.You don't stumble upon a niche - you make it. #nichemarketing Click To Tweet
Niche marketing is creating a specific product or service to satisfy a specific need.
What does this mean? It means that “niche marketing,” as a tactic or strategy, relies on both the consumer (who needs something specific) AND the business (who is the best at that specific task) in order to make something amazing happen.
Why is Niche Marketing Effective?
The polar opposite of niche marketing is mass marketing. This means “doing everything to please everyone.” It’s not a bad marketing strategy per se, but what if someone comes along and offers what you do…but slightly more specific? ZING, just like that, they’ve taken a small portion of your customers. What if two more competitors create products specific to different, smaller sections of your market? ZING, ZING! There goes another slice of your pie.
The main benefit of niche marketing is customer loyalty, which is a result if you being so in-tune with your audience that they have no reason to ever leave. By doing so, you become a big fish in a small pond instead of a small fish in a big pond. Other benefits include:
- Low competition (since you “own” the niche)
- Strong relationship with customers (leading to strong brand advocacy)
- Greater repeat business (since existing customers are likely to return)
- Streamlined business (You’re providing what you do best, to people that value what you do. You don’t waste time or resources.)
- High margins (customers are more willing to pay a higher price if you’re completely satisfying their needs)
- Ability to compete in a saturated market (Facebook too big? Why not create a forum specifically for card game players?)
“But, Chris!” you might ask. “What if the market is too small? We can’t possibly make enough money in the long run” you might say. Good question! I’d invite you to read my post on brand associations. Once you’ve completely satisfied your market, you can use the strength of your brand to perform a brand extension – jumping into a different niche, while maintaining the strength of your initial offering.
You can read more about these branding tactics in our free branding guide.
How Do You Execute Niche Marketing?
Niche marketing isn’t a crazy difficult marketing strategy. Here’s how you do it:
- Identify the needs, wants and requirements that are being addressed poorly (or not at all) by the competition.
- Write down and define this market segment – What makes them special? Are they left-handed? Do they have special needs?
- Develop goods or services to satisfy the identified need. Start by writing down everything your business is good at. What are you best at?
- You don’t need to re-invent the wheel. You could develop a new method of creating something that already exists. Does your new product save time or money? Or do you have a new awesome way of shipping/wrapping an otherwise boring product?
By doing the above steps, you’re creating a specialized offering to a defined market. You’re making something cool to people who want it. This is how you become an industry leader. This is how you create those strong brand associations. Best of all – it’s a win-win – and that’s the space where the most exciting marketing can happen.
Ask yourself. Is it better to do one thing really well? Or many things poorly?
Niche marketing – it’s more than just a tactic. It’s a mindset of how you can further become in tune with your customers.
I hope you’ve found this article insightful – I’ve had my fair share of “aha!” moments while writing this. If you’d like to chat, perhaps you could contact our marketing agency? We’re located on Robson, in the heart of beautiful Vancouver. Give us a shout! We always have chocolate.