Unlike trying to go after an entire market, niche marketing details targeting a specific (and often tiny) portion of each marketplace based on a specific interest, product or service.
Niche marketing has begun to take off like a wildfire due to the high competition amongst major brands in the most common marketplaces. A perfect example is how it’s literally impossible to beat Walmart in a price war because of their stranglehold on the market and the ability to buy in massive quantities.
As savvy marketers have begun to realize, it’s much easier to target a niche market because users within a niche will often be more motivated to buy, highly driven and the competition is almost nonexistent since big businesses don’t take the time to go after such small marketplaces.
Let’s break niche marketing down into the fundamentals:
1. Finding passionate buyers
When dealing with mass marketing, you are blindly throwing out your advertisement and marketing toward a large group of people and hoping that a few will respond by buying your product or service. Traditional marketing methods which utilize these large markets can be seen every day through radio, print and television ads.
Unlike mass marketing, niche marketing only goes after a small group which are highly motivated and passionate about a subject. For example, it would be much easier to sell to a niche market such as “Red 4 Speed Mountain Bikes” as opposed to simply “Mountain Bikes”.
Because users that are passionate about “Red 4 Speed Mountain Bikes”, you will more likely be able to speak to them directly without having to spend a massive amount of money on marketing toward a larger market which most likely won’t be interested.
2. Comparing the competition
As the example above, it would be virtually impossible for a mom and pop store to compete directly with Walmart because it’s simply infeasible for a small store to stock all of the products that are offered by big box retailers.
But this doesn’t mean a small business can’t do great if they target only a select niche. Unlike big box retailers, niche marketing allows you to compete against other businesses that are on an equal playing field with comparable budgets.
When drilling down into a specific niche, a small business will be able to find a unique selling point that major businesses aren’t able to offer. This USP can be the competitive edge which sets the small business in a league of its own vs. its competition.
3. Filling a demand in the market
Because of the web and consumers wising up about their choice in the sales process, many consumers want unique items in comparison to generic products offered by most stores.
When a big box retailer goes into business they often only stock the most common items within a particular group. A perfect example is the lack of music selection and its restrictions to only a couple shelves.
A niche business which markets toward the right marketplace will be able to dive further into each product or service and fill a demand where other businesses have missed out on taking advantage of.
As big businesses continue to push generic products, niche marketing will allow you to find the cracks where customers have slipped through and sell directly to them without having to compete on a large scale.
The further you go into a niche, the smaller the marketplace will become. The flip side with smaller niches is that consumers will continually be more driven and targeted toward a business, product or service.
Through niche marketing, advertising budgets will be slashed in half, conversions will increase and only the most passionate customers will be apart of the overall experience for any small business which digs deep into the marketplace.