For your marketing plan to be successful as a small business owner, you need to consider the entire range of strategic marketing that is at your disposal. Niche Marketing could be one such option that could make a difference for your business. Let’s start with the basics:
What is Niche Marketing?
According to Wikipedia “A niche market is the subset of the market on which a specific product is focusing. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.
It is also a small market segment.” Small Businesses normally offer specialized services that are innovative and that larger businesses cannot focus on as they cover broader categories, therefore niche marketing could be exactly what you are looking for. Here are the reasons why:
1. Smart Resource Allocation
Most small businesses, especially ones just starting up is low on a myriad of resources like labor, finances, technology and product capabilities. Utilizing Niche marketing allows your business to allocate the necessary resources into the areas that will be most profitable. It will also enable you to really streamline your products and address a number of consumer pain points at a micro-level.
2. Know your TG better
Instead of covering the needs of a large number of clients, niche marketing will allow you to target your audience better and also develop a clearer picture of what your audience is looking for. You will also be able to give clients one-on-one attention which will prove profitable in the long run.
These clients, when they are happy with your services will be likely to recommend your business to others, thereby growing your consumer base. This will also mean that your existing group of clients will be repeat customers contributing to the growth of your business.
3. Position Yourself as a Leader
Most startups believe they have something unique to offer the market, by leveraging niche marketing you will be able to position yourself as a leader in the field. Also the more unique your offering, the less competition you will have in terms of client servicing and business development. Read this previous post on How to Position Yourself as a Thought Leader for tips on how to get started.
4. Marketing and Promotions become easier
In a market where you are well aware of the needs of your TG, it is much easier to run marketing campaigns to seed sales, create buzz and amplify your brand values. You will be able to better allocate your marketing spends and get a better Return on Investment for any campaign.
5. Opportunity to Test the Effectiveness of your product/service
When you cater to a targeted set of businesses or clients, it allows you to develop and test your product more effectively. This will allow you to keep the features you find are working, disregard the ones that are not and develop the ones with potential.
Working in a niche market will give you the opportunity to finely tune the product you currently offer while allowing you to develop new products and ideas simultaneously. These are just some of the factors you should consider before attempting niche marketing.
Create a Business Plan around it, talk to peers, mentors, and employees to gauge whether it is the right move for your business.