If I market to more people I’ll make more money!
Many people think that ‘casting a wider net’ will equate to more profit. But it’s not true.
Successful marketing campaigns are highly relevant. Which is why niche marketing is a very powerful strategy and one that you cannot afford to overlook.
Here’s what you need to know…
What Is a Niche Marketing Strategy?
A niche marketing strategy involves targeting a specific segment of the overall market with a highly relevant offer. Rather than trying to ‘market to everyone’, your goal is to identify a unique audience who will be interested in what you have to offer.
Large companies with deep pockets dominate large, competitive niches. So by narrowing your focus, you are able to cater to the needs of a more targeted, and potentially overlooked, niche audience.
Doing so can result in a better customer experience, lower competition, and a more profitable business. As oppose to a mass marketing approach, which is broad, costly and probably less profitable for many smaller businesses.
In other words, niche marketing can be a lot smarter approach than mass marketing.
Who Should Use a Niche Marketing Strategy?
Niche marketing strategies can be used by practically any business.
Even large companies run niche marketing campaigns in one way or another. These companies understand that not all of their products will suite all of their customers. So they target specific products to a specific groups of people within their overall customer base.
Rewards programs run by large supermarket chains are a good example of this. Based on customer shopping behaviour, they email specials and product recommendations to cater to specific groups of customers. For instance those that already buy ‘health food products’ or ‘baby products’.
The main thing I want to discuss within this article however, is niche marketing strategies and small business. People who are looking to ‘carve out’ a specific segment of a larger audience. This is what the following examples will focus on.
Example Niche Marketing Strategy #1
The first strategy I want to discuss has to do with the offer itself. This strategy is all about differentiating the product or service so that it’s unique in some way.
Imagine you want to open up an aquarium shop for example. If you live in a small town, and the competition is low, you could probably get away with selling ‘regular fish’ and related products. Awesome.
But if you’re operating in a city full of competition, you could definitely apply a niche marketing strategy. In this case, you may identify that people are interested in ‘exotic salt water aquariums’ and target your business to suite this specific audience. The audience will obviously be smaller. But they are also willing to pay a higher price to get access to an ‘expert’ in exotic salt water aquariums. So your marketing is going to be a lot more relevant, and you are going to attract an audience who is willing to buy.
So in this example, it’s the offer itself that we are differentiating based on a need or want. And this is how we are able to successfully target a specific niche within a broader, more competitive niche.
The following two examples are similar, but the way we identify niche audiences is unique.
Example Niche Marketing Strategy #2
This example is relatively simple. You price your products to suite a specific niche market.
Say the overall market is ‘home furniture’ for example. Using this niche marketing strategy you could open up a discount furniture store or a premium furniture store. The first approach will likely result in a higher volume of sales, while the latter will result in a higher profit per sale.
In this case, people looking for cheap furniture are on a budget and just need something suitable. People going to a premium furniture store however, are looking for extra comfort and status.
This is why you would always avoid using lower price points in the premium store. Because doing so can affect the consumer’s perception of the ‘premium brand’. Which is a big deal if you want to continue attracting the right people and continue getting top dollar.
So as you can see, price can be an effective strategy to target a niche audience.
Example Niche Marketing Strategy #3
This strategy involves targeting an audience based on things such as demographics, interests and lifestyle. This is where you really need to understand the buyers within a given market, so you can break it down into smaller segments.
Take the broader “inexpensive getaways” market for example. Using a niche marketing strategy allows you to break this niche down into much more relevant segments. You could offer a younger demographic a thrill seeking adventure getaway, target a romantic getaway at newly weds, or a relaxing and scenic tour for older folks.
Anyone, at any age, can enjoy these activities. Yes. But it goes without saying that different demographics will be naturally more interested in different activities.
So by targeting these groups specifically within your marketing strategy, you are going to attract that audience at a much higher rate. Doing so will also position you as the ‘authority’ in that space and can ultimately result in a much more profitable business.
Implementing an Effective Niche Marketing Strategy
There are many ways you can leverage a niche marketing strategy for your business.
Here’s a snapshot of the overall process:
- Research the overall market and identify niche opportunities
- Learn about your niche audience so you know exactly what they want
- Determine what you are going to sell that will give your niche the most value
- Map out your marketing strategy
- Implement and track your results so you can fine tune
The first thing you want to do is break the overall niche down into smaller segments so you have a good idea what opportunities exist. You want to know what groups of people exist within the overall niche you are interested in targeting.
Second, you want to research and learn as much as you can about the people within your niche. You want to identify their likes, dislikes, needs and wants etc. What makes them tick? What do they love and what keeps them up at night? The more you know about your audience, the more successful you are going to be.
Third, figure out what you are going to sell your audience. You are naturally going to want to sell a product or service that speaks directly to your niche audience. It must resonate with them wholeheartedly, and offer them unique value. You know who they are at this point, so now your goal is to give them what they want. In a way that also benefits you of course!
Fourth, plan out your marketing. You can keep things super simple, or create an elaborate plan. But the most important thing is that you plan. Doing so will help you get the right message in front of your audience in the right way. This is naturally going to encompass an advertising strategy too.
Lastly, put your plan in motion. All the planning in the world is useless unless you take action on your idea. Not everything will work out perfectly the first time either. That’s the way it goes. Which is why it’s super important to keep track of your results and fine tune your campaigns over time. Adjusting your strategy accordingly.
Niche Marketing Strategies Within The Online World
Niche marketing opportunities are everywhere within the online world. If you know how and where to find them, there are endless ways you can take advantage of low competition niche segments online.
Take the following broad niches for example:
- Health and wellness
These are the three largest, and most highly competitive niches online. So if you tried to capitalise on one of these niches without narrowing it down, you would be doomed to fail. However the opportunities that exist within these three niches are massive if you break it down.
Take the ‘health’ niche for example. You could break it down into the following segments:
- Weight loss
- Muscle building
- Vitamins and supplements
- Mental health
- Self improvement
- Many more examples…
From there, you can break down the ‘weight loss’ niche even further:
- Weight loss supplements
- Exercise programs
- Workout equipment
- Diet pills
- Healthy home meal deliveries
- Healthy recipes
- Many more examples…
This is where it starts to get exciting. Because from here, you can start to identify real niche marketing opportunities with extremely low competition.
For example: you could take ‘weight loss supplements’ and narrow it down in any number of ways. Like “workout equipment for a flat stomach” or “portable workout equipment” or “workout equipment for elderly people”.
The ideas you can come up with are practically endless.
Exactly how you find these niche opportunities and profit from them is beyond the scope of this article. But my point is, you can start with a broad niche and progressively narrow it down into smaller, less competitive, profitable niche ideas.
Niche opportunities are absolutely everywhere within the online world.
Targeting ‘everyone’ with your marketing is a mistake. Doing so often means higher levels of competition, which can lead to higher costs and a lower overall profit.
Just how much you ‘niche down’ really depends on you and your business. But a good niche marketing strategy gives you the chance to offer your customers value in a much more relevant way, which will lead to much higher profits.