There are so many young businessmen who want to start a business, but because of fear of failures and lack of money they don’t start. Several time in the book of dictionary have said that proper planning should be there before you start anything. It is very important to do a planning but simultaneously understanding and studding your targeted Niche market is also important. It is very well said by one of the Well know Writer Shiv Khera “Winners don’t do different things, they do things differently.”
In this article I will explain you the Ultimate Secret of Niche Marketing in 3 Little Words. But before that let us understand what niche marketing is?
FIRST LITTLE WORD: Definition
Niche market is defined as the fragment of a market which focused on a specific product or services. It is basically buying and selling a product or a service in a special area of demand. Niche marketing often focuses on market segments that are poorly targeted.
SECOND LITTLE WORD: Meaning
There is one important thing to understand that ‘niche’ does not exist. But it is created by smart marketing techniques and identifying what the customer wants. Niche marketing is often created by identifying what a customer wants and this can be done if the company knows what the customer needs and then tries to deliver a better solution to a problem which was not presented by other firms. A niche market does not mean a small market, but it involves specific target audience with a focused offering. By doing so, the company becomes a market leader.
For example, there is a sales training expert in India who teaches financial planners how to generate referrals from customer at the close of the selling process. Therefore, he specializes in one minor part of the sales process only.
THIRD LITTLE WORD: Ultimate Secret of Niche Market
Niche market is that there is no or little competition under that segment. Your unique product will help you to grow in the market.
The Company is virtually the market leader and enjoys price monopoly.
Niche businesses are often high margin business because the product or services is particularly designed for the specific audience. And a special targeted audience spent lot of money for that product or service irrespective of price.
Customers do not mind paying a little extra because, they are only able to get that service in that company or under its brand.
Strong relationship with the customers because of the fact that the company operates in a small segment, the relationship between the company and the brand becomes stronger which is also a key to customer loyalty.
Word of Mouth Strategy:
Another benefit of niche marketing is that it is very word-of-mouth-friendly. People in a niche tend to be in frequent contact with others in that niche, which means more opportunities to reach out about your business. If you are a good gym instructor, your current customers will be some of your best marketers. The better you serve them, the more likely they are to recommend, and maybe even rave about, your services to their many fellow expectant mothers.
As it is a niche market other people will try to copy you. Others will try to understand ‘what you do’ and ‘for whom’, which will make you an expert in a certain field. Working on a particular segment will make you expert.
Easy for Marketing:
Niche marketing will really help with your marketing, positioning and branding as you will attract the ‘right people’ easier. People with similar interests behave and are attracted to similar things. And also a lot of your clients will do the hard work for you as they will refer you, and your profile.
Repeat business/Brand loyalty:
There can be brand loyalty because the customers may continue to repeat the purchases of the same brand. They may even recommend it to their friends and others. As you can provide an increasingly better service or product, based on your client’s needs, the chance is that you will get more repeat business – people will come back for more, and often will start spending more with you as the relationship grows.
Business Growth: Once the niche market is saturated, opportunities for growth can come from a number of sources. The best advice to most business owners is to focus on one niche first initially, and target that niche hard. Once you’ve started to build up a decent flow from that niche, you can then synthesize and create processes for additional niches, diversifying as well as ramping up your marketing. This will lead to fast and sustainable business growth with very little additional effort. Many entrepreneurs who are focused on niche markets find it incredibly profitable and fulfilling. The keys to success are to stay in touch with your customers, understand their needs and keep a focus on serving those needs with a commitment to continuous innovation.
Difficulties in Niche Marketing: The niche marketing strategy may not be suitable for long-term marketing, as niches may not give adequate business. The niche markets may be invaded by large companies, and small marketers may find it difficult to compete.
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