Niche Marketing Explained – What Is Niche Marketing?
What is niche marketing is and why is it important to your business?
If you are fairly new to building a business online, then you have probably heard about niche marketing. And if you have been online for a while, you may have even trying to using niche marketing as part of your business model.
But time and time again, it is my observation that when it comes to niche marketing, most people do not really take the time to understand the importance of researching and finding their niche, and really narrowing down their target market.
Why is Niche Marketing Important?
Why is niche marketing significant to you and your business?
I believe that it is important that you have at least a basic understanding of niche marketing and how and why it works, so that you as the business owner, can make your own decisions on whether or not a niche market is important for your particular business.
Niche marketing ultimately helps you target your market effectively. It helps you direct and focus your marketing efforts, and ultimately your sales and profit.
A key question to ask yourself is: “Do I really know who is my target customer?”
The answer to this question is in your customer avatar.
Niche Marketing and Your Customer Avatar
What is a customer avatar?
First of all, it really has nothing to do with the fantastic movie by James Cameron.
A customer avatar is a description of your target customer. This includes demographics (location, gender, age, job, etc) and market need.
How can we define marketing?
Marketing, in general, is the process of making your customers and future customers, increasingly aware of your business, your product, or services. It is the science and art of persuasion. Persuading customers to be prepared to buy from you.
Marketing is not selling, although selling is a part of marketing. Selling is the process of a direct transaction of money for something the customer perceives of value. Marketing is the process that occurs up to and after the selling transaction.
Marketing and selling are the yin and yang. Marketing brings potential customers to your business, or to your sales page. Selling is the process that gets a customer to actually exchange their cash for your product or service.
What is a Niche Market?
A niche market is a specific group of people that share something in common.
Niche markets are groups of consumers that we can focus on for our particular product, because they are the ones that will be most likely to purchase your product or service. This select group of consumers is referred to as your target market.
A target niche market can be broken down and defined in many ways. For instance, you can drill down into your niche market by:
- Family and marital status
- Interests and hobbies
- Ethnic and cultural backgrounds
- Social or religious beliefs
- Geographic locations
Most of the time a target market niche will be broken down in many different ways and many different factors will used to narrow it down, making it possible for business owners to effectively target the right group of consumers.
And once you narrow down your niche market, you can
Why is Niche Marketing Important?
The answer to that question is simple.
Niche marketing is important because “not everyone needs everything all of the time.”
Or to put it another way, “not everyone wants or needs your product or service.”
There is a basic business principal that many of us in online business tend to forget. If you asked most service providers or product sellers the question “who is your target customer?”, most people would say everyone. Everyone who has an internet connection and a computer.
Most people believe this because we want to believe that everyone wants what we have to offer as a service or product. The problem with this approach is that if your marketing is based on this assumption, then you will actually fail to reach the people who really want or need your product or service.
And once you start focusing on a target niche, you can then using online techniques to build a database of customers and future customers. The easiest way to build this database is to use squeeze pages and funnels and build a niche list of subscribers. A great resource is the Niche List Success System which includes squeeze page success system and a great case study.
Your Market Is Not Everyone
When you realize that not everyone, that in fact most people will not and do not want or need your product or service, then you begin to realize how important defining and reaching your niche target audience.
Keep in mind that people have different wants and needs, and those wants and needs vary by age, gender, employment, income, family and marital status, etc. It also varies by where they are in life, and what stress events they are undergoing.
If you use niche marketing to narrowly define your target customers and focus your advertising efforts on them, you will have a much better chance of success.
If you want to be successful in selling your product or service, then you want to embrace niche marketing as a basic marketing tool if you want your business to be successful.
Resources Mentioned in This Post
Niche List Success System – A great training system that shows you how to build responsive, even “small” lists in niches that many marketers will pass by. Includes a video training sequence that shows how to build a successful squeeze page system, and a great case study on the author’s success with a rather small list in an obscure niche market. Great training.
What are your thoughts on niche marketing and your business?