What is Niche Marketing?
Niche marketing is an effort to connect with and sell to a particular group of consumers. There are many different ways to define a niche market, with some examples revolving around geographic location, age, gender, sexual orientation, religion, or profession. While the marketer is open to consumers of all types, the main focus of the public relations and marketing efforts seeks to identify with the niche market and meet needs that are common to that particular set of customers.
It is not unusual for a business to identify a target market or markets that are likely to exhibit substantial interest in the goods and services offered for sale. One of the basics of niche marketing is to investigate what is important to each market of consumers and determine specific ways in which the goods and services offered will prove interesting to that group of consumers. Once these basic questions are answered, the business can use the data to develop marketing strategies that are aimed specifically at the niche group of consumers and educate them on why the company’s products will meet their needs and wants more effectively than any other product line.
Niche marketing is often a great way to uncover a sector of the consumer market that is overlooked or ignored in many cases. For example, telecommunication businesses sometimes overlook smaller clients such as faith based or non-profit organizations, since they are less likely to generate the same volume levels as large corporations. A savvy marketer can tap into specific niche markets such as state level associations that focus on a lesser known disease, tailor a marketing strategy to their needs, and win their business with relative ease.
While the return from this type of niche marketing is not as spectacular as landing a large corporation, the possibility of competition is greatly diminished, meaning the marketer is likely to retain the business at the initial rate for a much longer period of time. Even when a customer is lost to the competition, replacing the lost revenue is usually much easier than replacing a high volume client.
Niche marketing can be conducted in just about any type of business. Landscapers may choose to address the smaller market of private homeowners living in a particular area of town. Booksellers may choose to focus on carrying books written by local authors or titles that are of especial interest to people living in the area. Cosmetic firms may launch a niche marketing effort to appeal to women within a given age range, regardless of where they are located.
Depending on the market sector the seller wishes to reach, the niche marketing effort may employ any number of different selling strategies and mediums. Ads in local newspapers or niche publications may prove helpful in reaching the desired audience. Opt-in web sites that make use of keywords to connect with potential customers searching for specific products is another possibility. Even direct mail campaigns can be highly successful as part of niche marketing strategies.
Niche marketing ideas definitely includes a lot of market research. Sometimes finding out what other related products does this segment of the population use and how they make their buying decision is critical.
This is why many men’s cologne or clothing is actually marketed towards women because it is well known that women actually buy more of the men’s products then men do.
This is why you will see ads for men’s cologne in a women’s fashion magazine. There are many niche marketing articles that have stated this fact.
Sunny27-Niche product marketing is important because if your product or service is very specific it is only going to appeal to this specific set of the population.
For example, if you are offering reverse mortgages, clearly this is not a need that most people have. Usually elderly customers might have this need which is why you tend to see these commercials during programs that usually have older demographics.
You will also see niche marketing products like Life Alert which is an advisory system that the elderly person presses if they are debilitated and unable to reach a phone. Successful niche marketing targets the very customers that will most likely buy the product or service.
Niche product marketing narrows down the market to a specific segment of the population. The advantages of niche marketing allow the marketer to serve a clearly defined group that is most likely to buy the product or service.
Therefore the advertising dollars will get you more bangs for your buck. For example, it would not make sense to create a mass market television ad if your product serves a luxury market only.
You would be better served to determine the demographics of your intended product or service and directly market to them.
For example, niche marketing research would have to be conducted to actually determine who is most likely to buy the product or service you are selling.
A focus group is put together after a screening survey is offered. The focus group can give you valuable feedback in order to improve your product or improve your marketing efforts to reach these people.
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