A Niche Market is a category or a subset of the market on which an attribute of a specific product is focused. The niche market satisfies specific market needs, as well as the price range, production quality, and the demographics that it is intended to target. We can also say it as a small market segment
Advantage and Disadvantage of Niche Marketing
As a coin has two faces similarly niche marketing also has two faces namely positive and negative depending on which side you want to see, following are the advantages and disadvantages which you can see
Advantages-
- Competition: Since you are a niche marketer there will be or mostly no competition for you to worry about and you can easily enjoy being in a monopoly
- Loyalty: As there will be only a single provider for catering to the needs of the customer, your customers will be extra loyal to you and they will even be ready to pay more for the services you provide
- Pre defined customers: As a niche marketer you will have a fixed set of customers based on the demographic and age and you will not have to worry about the sales lead. This will in turn help you to redefine your marketing strategy and you can develop similar products in that range
- Marketing expenditure: Since your products target audience is already predefined you will not have to worry about the extra marketing budget to make people aware about your product instead you just need to make your target customers aware about the product. This tactics will help you to widen your reach and can have a positive ROI
Disadvantages-
- Limited Growth: Since you are entering the market with everything being predefined for your brand you will not be able to have a very exponential business growth
- Less profit margin: With limited number of customers along with your limited business growth you will be able to manage limited profit margin
How can you do Niche Marketing?
Here are the following steps which can help you get into NICHE MARKET
- Know your market thoroughly
Have an in-depth knowledge about each and everything happening in your market so that you can have a proper knowledge of the trend and happenings in it and from that you can plan out your business
- Look what customers need
The most and important step of marketing is to get to know about the customers need so that you can fulfil their desire and keep them wanting for more of your products
- Awareness
After understanding about your market and the needs of the customer you need to increase the brand awareness in the eyes of a customer so that you can now start selling your product/services
- Invest in advertising and branding
You can enhance your brand awareness by increasing your brand visibility and for that you need to start advertising and branding your product
- Competitors
Always learn from your competitors or peers and try to analyze which of their strategies are working or not and how can you adapt and modify their strategies for your benefit
- Look out for expansion methods
Never stop looking for an opportunity to act on and always keeps your eyes open for how you can expand your business without moving away from your brand image and expand your business
- Listen to your customers
Whether it’s your personal or professional life always try to improve or evolve yourself to a higher state and without developing a constant feedback system in place, it won’t be possible
Conclusion
If you have still not engaged in niche marketing then it is the correct time to explore this method as a mode to connect with a smaller, but more loyal subset of customers. Use the tips and examples in this post, as well as the techniques to help you develop a strategy for identifying an underserved and valuable customer segment you can focus on.
In case you still have a doubt about how to get your brand into niche marketing let us do it for you!