“A niche market is a small part of a larger market that has its own specific needs, which are different from the larger market in some way.”
Defining who your target market is one of the foremost and the most fundamental step of a business. The old adage “Jack of all trades, masters of none” will help you understand the concept of niche marketing better. A business cannot serve everyone and all their needs otherwise hence one needs to be specific when defining your audience. A niche is a specialised portion of a broader market that a brand should target and optimise in order to achieve success in their particular field of business.
While setting a niche market is important it can be slightly daunting or confusing for a lot of budding businesses who have a solid idea but are unsure about its execution. A niche has to be carefully crafted in order for it to work.
The first and foremost step is to analyse the market, see if your idea when turned into a product/service has a considerable demand.
The second step is to analyse your Unique Selling Proposition (USP) that makes you stand out amongst the competition
Once you’re definitive of its demand go a step further and categorise your specific audience when I say specific, you have to take into considerations a whole lot of ranging from geographic, demographic to psychographic factors.
Make sure that your niche market will help you reach your long-term business goals and fulfil your vision for the company.
While some may believe that niche marketing or catering to a specific market reduces business but its quite the opposite. A niche market does not directly translate into a small market rather it is a great opportunity for you to be a market leader in your segment. Catering to a specific crowd has its own advantages starting from :
Less Competition: When you sell a product with a defined USP which is unlike any other in town you automatically kill most of your competition as you have the added benefit of uniqueness.
Being the market expert: Since you practice in a particular area of work, it gives you the time and space to hone your skills and in a very short time helps you become the expert in your field. This further helps in gaining brand recognition and people will further become loyal to your products owing to your expertise in the market.
Heavy Profits: I’m sure this point must have grabbed your attention and it should because niche marketing will bring in good profits to your business. Customers wouldn’t mind paying a little extra for your products/services since these directly fulfil their demands and also it helps you in streamlining all your efforts and resources to a set audience who deeply resonate with you have to offer.
So, instead of being a jack of all trades try to master one and put all your focus into creating a niche that will help you stand out.