A Niche Market is basically a sub-market of a larger one having a more specified target audience. Maybe an example would explain this whole theory in a better way. Well, take a computer market, for example, the computer market targets a huge audience as a whole. The niche of this market can be companies that only cater to a specific audience like gamers.
To look for a niche market can be a hard job to do as it requires a lot of research. If you are looking into a market where no one has yet catered, it can be even more difficult. Even with these scenarios, it can sometimes be easy to find a niche market for yourself.
Niche Market Examples
Example No. 1
Let’s discuss some common examples of a niche market. The jacket is a product that has a broad target market, as literally every human being on earth needs one. Take women’s vintage trench coats for example. This here is a niche market as you are providing a jacket for women who like trench coats and are willing to pay more for them. Finding a niche is easy sometimes if you know what you want to offer and to whom you want to offer it to. All you need is good research and commitment to your idea and yourself. Vintage trench coats lie in the niche market as they cost more than an ordinary coat and they are for being offered to women only.
Example No. 2
Another valid example of a niche market is Pixie Faire. You probably would know about them. Well, this is a company that allows the consumer to design the clothes of their dolls. They can either use it for themselves or can sell them, as Pixie Faire also provides them with a marketplace. This is a remarkable example of a niche market, as this is a company that likes to cater to the ones who are wither collectors of dolls or like to design clothes for them. I know this can be a small community to cater to, but trust me these guys are doing great so far.
Niche market basically involves targeting a particular demographic, it might be possible to have several products and services that you could offer to that particular target. Isn’t it amazing that by only doing a bit of research you can come up with several products and services that you can offer to a particular community and get your business to grow as well? To me, it is. Here are some more examples of a niche market
- A dog trainer that only trains old dogs or the ones who are recently abused.
- A hair salon that only deals in styling and no cuts.
- A law firm that focuses on family law and doesn’t deals in any other sort.
Also Read: B2B Marketing Services & Strategies
Niche Market Strategy
A niche market strategy involves a number of steps that you need to follow in order to achieve the most out of it. I have listed down all these steps for you, to make it easier for you guys. Here they are
Identify your audience
The first thing which is required to cater to a niche is to find a specific audience. You need to know who you want to cater to before deciding to get into it.
Choose the Area you want to Focus on
Once you identified the audience you want to target, the next thing you need to do is to choose the focus area. Some people usually make the mistake of choosing the area with the highest growth. You need to see what you are good at. A person who has experience in selling pharmaceutical products might want to get into manufacturing, but this won’t be a perfect idea. The perfect idea would now be to cater to a specific audience. Let’s say, to cater patients with anxiety issues.
Identify Consumer Needs
The next you need to do is to identify the needs of the consumers you want to cater to. At this stage, you need to do proper research work in order to find the needs of those consumers. You need to look for something which they want but are not able to get that easily.
After all the research work and aspects, you have considered, you now need to evaluate the whole thing again. You need to see whether the audience you have chosen is right or not. Or whether the needs of a consumer which were being ignored, have potential or not.
Do Test Marketing
After evaluation does a test run. Pick a specific area of your targeted audience and try to sell them your product or service. This will give you an idea about how well your product or service is going to do in the chosen market before doing the actual launch.
Launch the Idea
Once you are
sure of everything else, there is nothing left for you to do except that you
launch the idea.
Niche Marketing Advantages
Niche market has comparatively lesser competition than an ordinary market, given that it deals with a specific targeted demographic. It gives the business an opportunity to stand out from the rest of the businesses.
More Brand Loyalty
You can always create loyal customers if you are dealing in a niche market. As it is difficult to find niche products, so customers usually stay with the brands which are already offering those products. Niche marketing lets you provide those products and services to a consumer which they need or desire the most and it is hard for them to switch to another brand.
Better Marketing Insights
Any business that wants to get into niche marketing first needs to do a lot of research. This research done helps the business in creating a better understanding of the consumer. About their likes and dislikes, their wants and desires. You get better marketing insights with the help of it, as you now have better marketing ideas to approach those specified target markets.
Minimizes Marketing Expense
As you already know that niche marketing is targeted towards a specific group, so you don’t have to waste all of your budgets on marketing. It is a sort of market where the user usually finds you and stays with you without a constant reminder. This approach actually allows you to target and grab a larger audience who are more likely to purchase your products and services with less spending on marketing.
Niche Marketing Disadvantages
The only two disadvantages of a niche market which I feel need to be highlighted are that It is not suitable for a small company as it can be hard for them to generate a larger percentage of profit. This is because the targeted audience is already small and if the business is also small itself, it won’t be able to cater to that limited market with the number of resources it has.
disadvantage according to me is that there is limited growth in niche markets.
As the number of the targeted audiences is small you won’t be able to grow or
expand your business the way you could if you weren’t dealing in a niche.
Working on a niche market is one of the best strategies which a business can adopt. If you are in digital business, this can be the best thing ever for your business. Having a well-defined targeted market is something that every business requirement. Dealing in a niche market gives you the opportunity to work on it form the very first step. Having a defined client will optimize your company and all its processes and will give you better results in return.
You must remember that the mentioned example is not even 1% of what you can do in a niche market. You need to be creative and innovative. Define your target audience, find their unmet needs and start working on them.