Most people understand that marketing has to do with researching potential customers. Things like their age, budget, interests, and location are taken into consideration. A clear picture has to be drawn of who these people are and what they want before the product or service is tailored to suit them. In this article we discuss Is Niche Marketing a Successful Strategy?
Niche marketing takes this up a level and requires more than just a thorough understanding of the product and general audience. It is also called focused, concentrated, or micro marketing because a more refined target audience is sought.
The advertising, product, or service becomes more bespoke as a result. Is this a successful business strategy? Let’s take a look.
It Will Require Specialized Research and Training
Advanced market research has to be done in order to break down the potential customer description. For example, it may not be just homeowners, but new homeowners that are targeted, and not just parents but first-time parents.
Further questions may then be asked, such as ‘what about just reaching the men or the women?’
It’s not hard to see why this may involve employing external marketing help, or training from business professionals. Learning Management Systems can help companies to document, track, and report on the level of training conducted within a company.
Comparisons can be made person by person. This can help identify gaps in peoples’ essential knowledge, and ensure that people stay up to date on everything. It was interesting to learn from the professionals that Learning Management System consulting can sometimes be obtained for free.
A business’s costs, features, and scalability would also help decide the most appropriate software to choose from. The LMS can then become a tool for overseeing both internal and external training.
It Narrows the Target Audience
Niche marketing is all about discovering a specific need that is not currently being met adequately by anyone else. It’s an open window and an opportunity to be exploited while it is still possible.
This should mean there will be fewer (if any) rivals, and it’s a great chance to increase the company’s market share. Any business jumping into the gap will soon be seen as a specialist, with customers maintaining loyalty over time as a result.
When high demand meets low competition, there is a chance of high ROI (Return On Investment).
Marketing campaigns can be far more personal when they address a more specific audience, rather than when they simply address everybody. Customers like this and are likely to respond positively.
It’s a great place to be when a company has a price monopoly on its products. This may not last, of course, but it is important to seize the moment.
Different Types of Companies Use Niche Marketing
Generally speaking, bigger firms have a bigger net. They try to catch a wider range of potential customers. They can afford it, after all. Having said that, there are exceptions. As an example, some car companies still pursue niche marketing within their overall plan.
A more specific model of the car may appeal to a narrow audience, and it will be worth spending money to attract them.
Smaller firms are certainly attracted to niche marketing. They can’t afford to cast a wide net and appeal to everyone because their budgets are more restricted. Subcategories of customers can be the perfect target for small businesses.
They then go from being a small fish in a big pond to a big fish in a small pond.
Campaigns and Products Can Be Tailor-Made
Marketing campaigns then have to be tailored for this specific audience. You’re only trying to reach female footballers or young PC gamers, for instance. Teenage males expect something differently worded to teenage girls.
They will be looking at different websites and social media pages, too. Different offers will attract different people. Some will be looking for free subscriptions or ebooks, and others for discounts.
The good news is that such advertising is cheaper because the sought-after market is more limited.
In a similar way, thought can be given to making the product or service more specialized for this niche audience. What about the packaging, and what extra benefits would suit this type of person?
What other products could be promoted? Any of these could be the hook that lands the fish.
Competition in business is generally fierce and fast-moving. Technology advances at a huge pace, and markets become crowded very quickly through competition. When niche marketing enables a company’s voice to be heard above the crowd, it sets itself up for success.
The fact that even some large companies with fewer budget constraints use some niche marketing speaks for itself. It’s a valuable technique that will pay dividends when researched and implemented well.
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Also published on Medium.