Niche Marketing is a buzzword that you probably have heard of unless you live under an Internet rock. Niche Marketing is the hottest topic in marketing online right now.
Is this something new?
In some ways the concept may be new, but in others, it’s an old marketing technique. It might be on the Internet, but if you have been involved with direct response marketing in the “Bricks and Mortar” world, then it probably isn’t. That’s how we have done things since the beginning of time.
What is Niche Marketing?
Marketing 101 is a course that you will have learned. It says, “Find a need, fill it.” This is what “Niche Marketing” stands for. Marketing is about finding a niche group of people with a specific interest and selling them the product or service they are interested in (Marketing).
Here are some examples of these Niches
- Gourmet foods
- gambling
- mortgages
- cooking
- appliances
- tableware
- beauty tips
- astrology
- cats
- hand-made candles
- health and fitness
- dating
- dog training
- credit cards
- music
- and jewelry.
This list could go on forever, and these are only the main headings. Each niche has its own niche market. There is likely to be a niche market for any subject.
However, the goal is to identify a niche that is “tightly focused”. This is because if you are targeting a broad market, it can be difficult, if not impossible for, the small guy to gain a foothold.
You can reduce the size of the market by eliminating most of the big hitters with huge advertising budgets. These guys don’t care about making a few thousand dollars a year in these small specialized markets. They want millions of dollars from the mass markets.
Let’s face the facts, you can’t be everything for everyone if you are a small guy. Therefore, you need to choose a narrow focus (Niche), for your business. Don’t focus on fishing, for example. Alternatively, target “fishing bait”, “fishing tackle”, and “fishing rods”, which all have a narrower focus.
Do you like the idea?
You will have an advantage over larger companies if you reduce the market size. Here’s why:
- If you aren’t already an expert in your field, you can quickly become one.
- It is easier to stay current in a narrowly defined market niche
- Market changes can be reacted to faster
- It is possible to build strong relationships with key customers which will make it difficult for you to compete
You may be wondering what niche marketing is all about. Here’s how it works in a nutshell:
- Research profitable niche markets
- Develop or locate suitable products/services for the market
- Create a website to promote the products/services
- Create a marketing strategy that works for your business
Continue the process with a new niche each time.
Imagine a niche website that makes one sale per day for $10. This is $3650 per year. How many websites could you create and manage 1, 3, 10, ….??
Before you get too excited, here’s a little caution:
Niche marketing isn’t some kind of magic trick. It’s not about putting up a website, then waiting for the money. While “build it and the people will come” worked for Kevin Costner in Field of Dreams it doesn’t work on the Internet. You’ll have to wait a while if that happens.
A niche business must be managed like any other business. If you are willing to work hard, the rewards can be substantial.
