Niche Marketing Tips

Shonika Proctor asked:




Niche Marketing, it is one of those things that is so simple that it is complex. The understanding of the niche market and the customer that fits the profile for that market is one of the main reasons why small businesses excel, yet the lack of understanding of it one of the top reasons why small businesses often fail. Many people do not understand 1. what it is or what it means and 2. the power of it when paired properly with your target customer and leveraged with the business brand.

So what is a Niche?

It is a specialized product or service for a special profile customer. i.e. a Doggie Day Care. It is a day care only for dogs and not for pets in general and the only people who could benefit from such a service are people who own dogs.

People may think to themselves, why would someone want to ‘limit themselves’ or narrowly define their market? But think of it this way.

How ‘Big’ is Your Small Number?

If you are in the clothing industry (t-shirt business) for instance think of the two ways you are likely to make money. First you could mass produce t-shirts overseas and sell them for a high mark up. Think of selling t-shirts on street corner stands in popular tourist cities and the Wal Marts across the nation. They sell for less but you can sell them in mass quantity. Or on the flip side you can sell limited edition products. Sell less shirts that market to a specific gender, race and income profile person. This is a niche.

Think of this, by our very nature, we often start small businesses with a niche in mind. Say you have worked in a certain type of corporate industry for many years and you get that entrepreneurial bug. You say to yourself, ‘The people who run this company are clueless. They are missing a big opportunity by not offering our clients XYZ service or product’. So you go off and incorporate your business and you start your business with that niche offering in mind. But then between getting sidetracked by trying to learn the business of running a business which you were totally not expecting and getting your marketing collateral and website in place, you realize that now 3 months have already passed and you haven’t even been soliciting new clients. Now you are worried that your 3-6 month savings is going to run out, so you go into panic mode and start getting goofy and desperate. You tell everyone you meet you can do the same services that your other company provided but for a cheaper price.

Yes, perhaps you can do all that stuff, but the question is: Why would you want to overwhelm yourself like that? And better yet, why would you devalue yourself at the beginning. When you offer a niche service, it means you are an expert in a specialized field, hence you are worth more. Even though capitalism is the way of the U.S. the people who are most successful in their respective niche markets did what they had a passion for doing and learned how to solve a problem. Although many businesses understand what their niche is from the beginning but the disconnect is they don’t usually understand how to position or market their niche or how to find their ‘target customer’. So instead they start expanding their business model and begin offering too many services and products that ultimately their target customers get confused and begin to compare them to the likes of their former employer or companies that have a stronger presence and credibility and store front. In order to avoid getting lost in the sauce, you have to focus on a smaller market not a larger one. You can either be the big fish in the pond or the little fish in the sea.

How Do I Figure Out My Niche?

1. Do something you love and the money will follow. Do not think of popularity of a trend or something that ‘can make a lot of money’. Do what it is you really like to do, whether it is offer one specific product or service. In the end if you truly love doing that thing, on the days you are not feeling so upbeat about business, your love for that thing you do will help to keep you inspired and motivate you to find a way to make it work out. (this is your niche)

2. Solve a Problem. Think of the problem you solve for the marketplace by offering their product or service. People don’t like to be sold, but they love to buy based on something that brings value to their livelihood or solves a problem. (this is your value add)

3. Identify who could benefit from this product or service: Detail everything about the profile of your target customer including gender, age, race, socio-economic background, the color of their shoes, whatever common things you can think of regarding your customer. (While some of these factors may vary from business to business, this more or less becomes your target or profile customer).

Note: 1, 2 and 3 essentially make you your elevator speech.

4. Wherever They Go, There You Are. Think of the places those specific customers congregate, socialize, interact. Think of the publications they read, their online and offline shopping trends and habits and start spending more time in those places. You should know as you have spent a great deal of time with this type of person. They should all be found in common places. If you are struggling be more specific about #3. (This becomes your short and long term marketing strategy).

5. Empower people. If you want to become a powerful person, you must empower others. People often think when they ‘give away’ important and valuable information or resources that people will use it ‘against them’ and they will become powerless. On the contrary, both your customers and your competitors will see you as a resource and ultimately they will build trust in you.

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