Before venturing into any business, the first question you should think about is “who will be my target audience?” While you can play it safe and target the general audience, doing so might not give you the success you’re aiming for. Understanding the concept of niche marketing, for starters, can be of great help. Focusing on a specific group of people can help you focus your messaging and greatly boost your brand’s loyalty.
In this article, we’ll talk about what niche marketing is and how beneficial it can be to your business. Moreover, we’ll share some proven niche marketing tips that can help you get the most out of your campaigns.
What is Niche Marketing
In a nutshell, niche marketing is a highly targeted form of advertisement. It channels all marketing efforts towards a well-defined segment of the population rather than focusing on a large segment of an audience in the market.
A niche market is often created by understanding what the customer needs and then providing a unique, better solution to the problem which was not presented by the competitors.
According to Sprout Social, brands divide the market into subsections according to things such as:
- Geographic location
- Psychographic data (interests, attitudes, values)
- Demographic base (age, income level, gender, education level)
- Quality level (premium, moderate, high, low)
- Price (high, discount, wholesale)
You might probably think: “will it be better to market to everyone instead of a specific group of people?” Unlike niche marketing where products and services are produced based on the needs of a specific group of people, a brand that practices mass marketing does not adapt products based on consumer tastes and special requirements. Thus, leaving their brands unattractive to quality-conscious consumers.
Benefits of Niche Marketing
Here are the benefits you can get with niche marketing:
1. Brand loyalty
Compared to mass marketing where consumers have no other reasons to be loyal to the brand except for its low prices, niche marketing offers a certain kind of brand loyalty that no other strategy can provide. By developing products or services that specifically cater to a specific need or preference, you’ll make these specific group of people feel seen and heard. This alone can increase their loyalty to your brand.
Given how rare your products or services are, your target audience will now be interested to check what else you can offer them. Once they are satisfied with what they see, the next step is for them to make a purchase. Should your products or services pass their standards, expect them to come back repeatedly.
2. Low competition
Since what you’re offering is only targeted to only a segment of a population, it is likely that your competition will be reduced. Low competition means getting higher chances of successful business transactions.
3. Increase brand credibility and visibility.
With lower competition comes higher brand credibility, visibility and relevance. By offering products that are highly targeted to a specific number of people, your target audience will expect that your brand has deeper knowledge and understanding of their specific needs and preferences. Thus, giving you a sense of industry credibility.
In most cases, businesses that practice niche marketing tend to be unique compared to brands that practice mass marketing. As such, they get featured in various platforms like online magazines, television and even newspapers, resulting in increased brand visibility.
Effective Tips for Niche Marketing
Follow these three simple steps below for a successful niche marketing:
1. Understand your niche market inside out.
So you have already defined a niche market and you’ve developed a product or a service that will appeal to your target audience. The next thing you need to do is to work on behavioral segmentation. This is crucial when defining a more specific target audience for a niche business.
Behavioral segmentation involves how your customers behave on search engines or on your website, how they engage with your ads, landing pages and emails, how frequently they purchase and more.
2. Provide a solution to your customer’s problem.
What’s your unique selling proposition? Alongside understanding your niche market, it’s also critical to know how your brand will solve your customers’ problem which isn’t currently met by other businesses in your industry.
3. Look for the best way to spread the word about your brand.
Small markets are just as competitive, if not even more so. As such, you need to find the best approach as to how you can spread the word about your business. Social media advertising, for instance, is one of the most efficient platforms for small businesses operating in niche markets.
Whether you’re a newbie planning to venture into a new business or you’re a marketer working in a highly specialized field, niche marketing can be an effective marketing strategy that you can implement in your business.