Don’t rush around to solve problems or everyone in the world. There are Sap and Microsoft who does it. In front of such elephants we are nothing but tiny mouse. So its better not to have a competition with them, instead focus on a small group of people those are willing to pay money for the required solution. This is called a niche market. It is a targetable and focused market. For small businesses the niche market turns out to be an attractive opportunity.
One thing which should be remembered is that niche markets does not exist already. It has to be created by the people by knowing the need, wants and requirements of the addressed people. Niche market is something like a big fish in the small pond rather a small fish in the big pond. It is sometimes also called as micro-marketing.
Elements of niche marketing strategy:
1. Know the needy people: Know the group of people that are actually interested in your goods and services and are willing to pay money also for the solution. The more people you would get the more would be good for your niche market.
2. Set goals: One need to set clear objectives and goals for what actually the business wants by following the approach of niche marketing. Reach new and new customers as they are very essential or the growth of the business.
Importance of Targeting a Niche Market:
So the question arises why to hunt for a deer? Why not hunt a lion where the big flesh is?
Some of the advantages of niche market involves low level of competition, and to become famous in a short span of time. Reaching the target are sometimes easy.
Here are some of the importance of niche market described briefly:
1. Less competition: Well you are a fresher in the industry so its better to fish in a little lake and not look for oceans. The competition in the niche market is very less. One can easily gain a No. 1 spot in the small market. Don’t worry the big elephants will not compete with you in the niche market. They will never come down in the small markets as they are too greedy to go in a low revenue market, the niche market. The biggest advantage of less competition is that it can be easily replicated.
2. Easy and cheap: The niche markets are always easy and cheaper. Now suppose if you launch a product that would solve every problem in the world, the how will you endorse the product? How will you advertise on such a large scale? It would be quite difficult.
Having a niche market comparatively is quite soothing. Here you have to target a small audience. You know their requirements. The things get pretty achievable.
3. It pays a lot of money: If you have successively build something that can solve the problem of a finite set of people, than that class of people will pay you a lot of money. The reason for it is that there is exactly one solution in the whole world which satisfies there issue. You are like a solution to their problem. And the people are willing to pay you money also for that. Hence niche market pays you a lot of money for the solution.
4. Become expert and be well known in the community: It becomes easier for other people to know what you actually do and for whom you do, which can eventually make you an expert in that particular field. First of all, the niche market is a small one. The niche market is small one thus you will be well known in a much lesser time. Your identity and profile will grow within the group and will be known to all. Secondly, the topic of interest of the business is very focused one. Since the market is small, it becomes easier to target a particular group who wants a particular solution of their topic.
5. It gives you a specific topic: The niche market is highly saturated and to stand out in the crowd of millions you need to have a specific topic to tackle it. It is important over there to make yourself differentiate from the others. This is when choosing niche becomes very important and we have to be very careful in choosing it.
The focus should be narrowed down.
The market should be targeted and specific.
One needs to have a full detail of the topic of the niche market before landing yourself into it.
This Post is written by Alia. She is a writer/blogger. She writes articles on Technology, social media, wordpress, Gamification, responsive design and software development etc. These days she contributes on Devrover.com
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