As a small business owner, you’re hoping to fill a specific need that big-business competitors can’t meet. This often means your customer base will be a niche market and in order to grow, you must embrace that niche.
Have you spent time in a grocery store lately? If so, you were probably amazed at the number of companies marketing to consumers preferring organic, gluten-free, low and sugar-free, preservative and antibiotic-free food products that were mostly unheard of only a few years ago.
As you can see just from your grocer’s shelves, many companies—both small and large—are embracing a more select audience. According to Forbes, embracing your niche market immediately gives you a leg-up on other businesses in the space. Choosing and targeting a market niche, whether demographic, geographic, psycho-graphic, product oriented, or service, can position your company for scale-able success and leadership.
What is Niche marketing? According to EconomicTimes.com, a niche market is often created by understanding what a customer wants and delivering a better product or solution to a problem that was overlooked by other firms. A niche market is not necessarily a small market however. Millennials—born in the 1980's and 1990's—are an extremely large and diverse group of consumers and represent a $200 billion market.
Marketing to millennials is different than marketing to their parents or grandparents. Each population is a well-defined segment and would require a specialized offering if you want to sell to them. However, by understanding the needs and interests of one or more of these different groups as they use your product or service can make you and your company a leader in your market and an influencer in your industry.
Several tremendous benefits of developing a strong niche marketing strategy could, according to Smallbusiness.chron pay off through less competition—allowing you to focus fully on your customers and your offering, not on monitoring the competition; higher profit margins because, as you know, customers are happy to have found a niche product or service that caters to their specific needs and are willing to pay more for it; and intense brand loyalty.
If you are ready to connect with a smaller, but more loyal subset of customers, you should start by considering what you offer and what you’re good at, do your due diligence by conducting a competitive analysis to see who your competitors are in this space, get to know and understand the needs and wants of your target audience, and test your ideas for market fit.
Then, if after all your research and testing is complete and you still feel your idea will make a good business for a niche market, take the leap. After all, who would have predicted that cheddar-bacon-mac-and-cheese potato chips or making chia pudding from the seeds of your Chia Pet would have ever caught on?