Niche Marketing is a term that has become a buzz-word in recent times. It basically involves finding a targeted market or audience which is a focused group of people interested in a specific industry that has a need or a problem and then bridging the gap for that target audience of that niche through market offerings that will help make their lives easier or make a task easier to accomplish.
The question arises as to why should one practice niche marketing when all the profit seems to be evident in the markets where there is large competition and a large target market.
Well! There are substantial benefits for practicing Niche Marketing and here are 6 major benefits.
1. If you undertake Niche Marketing research and carve out a listing of profitable micro niches rather than focusing on the larger markets, this will automatically give you an advantage over the larger and more established players that have generalized offerings to a larger target market.
2. Niche Marketing allows you to quickly become an expert in your micro niche by focusing on building your brand within one micro market at a time and making your brand name synonymous within the niche. This often leads to higher top of the mind recall amongst the customers in your niche.
3. It is much easier to keep abreast of the current happenings and trends in a narrowly focused micro niche market than it is to cover all mainstream markets in addition to their sub niches. This leads to enhancement in your expertise within the narrow market segment.
4. It becomes easier to respond faster to changes happening in the target micro market and adjust your marketing as new trends emerge. You will be in a better position to adjust and make changes in your offerings which fulfills the needs of your micro niche target market.
5. It becomes easier to build a long term relationship with the key customers of your micro niche market as you will be avoiding the struggle of competing with established players and competitors who have already dominated and have created a brand name for themselves in the broader market. Further, these
large players have huge marketing budgets which help them to remain in the loop with their customers.
Finally, another reason why it’s often more feasible to focus on smaller micro markets rather than broader mainstream ones is simply because of the extended opportunity to create new products that may not have been introduced to your target audience yet. This happens because you will be more in touch with new trends and new problems in the specified micro niche market.
It is well recognized now that smaller niches can be just as profitable as mainstream ones even with fewer customers because the conversions for your offerings will be much higher as you will be recognized as a major player whom people trust within that micro niche. If you have a long term vision to fulfill the needs of the micro niche market, you will be able to develop future products to meet the demands of the audience for that micro niche.