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Choosing Profitable Niche Markets to Target

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Movie trailers are usually designed to target a specific audience. The editing should be done in such a way that the viewers know whether the movie aligns with their ages, interests, and values. If, for example, a horror movie branded itself as a comedy and the trailers primarily preceded funny movies, people would be left confused. Movies and businesses generally need to remember their target audience when advertising. Whether you already have a company and are looking for creative ways to reach new consumers or are trying to decide on the direction to take your recently-launched business, knowing which groups you want to reach is essential. Developing a niche market strategy-- that is, targeting a very specific audience-- is a great way to expand your company’s influence. This is your guide to doing just that!        

What is a Niche Market?

A niche market is simply a smaller part of a larger market. For example, you could divide the group “pet owners” into “dog owners,” or the group “students” could be further refined to “college students”and then to “students in online programs.” Niche marketing can target well-defined aspects of consumers, such as their location (country, region,city, etc.), demographics (gender, age, cultural background, income, etc.), and upcoming events (wedding, birth, retirement, etc.). It can also target more abstract consumer qualities like “psycho graphics” (values and interests) or lifestyle (travelers, athletes, etc.) among others. In particular, it is important to consider how your product is perceived. Is this a luxury product?Is it for conscious consumers? Is it handmade? You get the idea.

A niche marketing strategy is at the same figuring out the general group that will most benefit from your product and selecting subsets of that group on which to focus.

Consider an example. Most people buy toothpaste,and there are many, many options for toothpaste. Rather than focusing on“everyone who wants clean teeth,” most companies focus in on smaller groups.Some are marketed to children; others are marketed to people with allergies and sensitive teeth. There are toothpastes marketed as being better for consumers’health and for the environment, while still others appeal to those looking to make an economic choice. Each company has selected a niche market and tries to make a strong impression on that smaller (but still sizable and profitable)group rather than make a weak impression on the population at large.

Why Should You Care about Niche Markets?

At first glance, niche markets may seem limiting. In reality, however, the hyper-focus that comes from selecting a small group makes that group feel more engaged than if they were targeted more generally. This, in turn makes them more likely to use and recommend your product. By focusing on a niche market, you are telling a very specific group that your product is for them. It’s not for people like them, but it is for them specifically

Think about it this way: we all like to feel special. We all like it when someone “gets us.” Niche marketing is matching that feeling to your product.

You should care about niche markets, therefore,because they are a way of effectively increasing brand awareness and consequently growing your business and revenue.

How to Select a Niche Market

Now is the fun part. Brainstorming for your niche market is the time to get creative! Before you consider your audience, however, you’ll need to first consider your product or service: 

  • What is its goal? 
  • What sets it apart? 
  • What are different reasons people use your     product? 
  • What are your company’s values?

Then, consider your audience:

  • Who are your current clients? 
  • Who do you want to reach? 
  • Who can make use of your product?
  • Do you have a lot of repeat clients?
  • Do you work with individuals or with organizations?

Once you have generated a list of groups, use the consumer qualities listed above to generate subsets. Where do these groups overlap? Which subsets are underrepresented in your client base? Which subsets could especially benefit from working with you? Get really specific! 

As another example, consider a company that makes dog treats. The company is probably looking to reach dog owners generally. But which groups are most likely to use and benefit from this specific dog treat? Is it people with large dogs? People with active dogs?People in cities? People with families? People concerned about sustainability? People concerned about health? Such a company may choose to focus in on one of these groups or an overlap of these groups. Although most of these people would probably find value in the treat, focusing on, for example, people with families in your local city is going to have a stronger marketing effect.

Other Considerations

Another consideration for developing a niche market strategy is competition. Ideally, you will want to be reaching sizable groups with low competition. If a group already has a lot of targeted advertising, another “aha, this company gets me” moment will not have as much of an impact. Some emerging 2020 niches with low competition are products marketed as eco-friendly (or sustainable or waste-free etc.), healthy, for pets, technologically advanced (especially smart technology), and things that are ideal for busy lives. Of course, combinations of these groups, such as eco-friendly, healthy snacks for busy people, for example, may be even better.

How to Implement

Once you have your group and subset selected,you need to figure out how to reach that group. Do more research on the sub set to see what kind of places they frequent (especially if you are targeting people in a specific location) and what kind of media they consume. There are tons of ways to market, but people are increasingly making use of technology to this end. A great way to do this is affiliate marketing. Find sites and social media accounts that your group uses and then reach out to those sites. Consider giving a vlogger or Insta-influencer a free sample/trial of your product or service so that they can review it. In this case, the specific person or website will tailor their response to your target niche because it is also their target audience. That person will also get a free product. It’s a win-win!

Don’t feel constrained by this approach though!Even simply putting up a customized ad in a local vegan restaurant can make an impact on those concerned for animal welfare if that is your target audience.Marketing directly on a local college campus can yield results if your specific group is local college students. Entrepreneurs and freelancers are set apart by their creativity. Niche marketing is a great time to use put that creativity to work!

Niche markets are a fantastic way to grow your business by focusing in on small, specific groups that will benefit from your product or service. This ensures that your company has a stronger impression on the target subset rather than having a weaker impression on a larger group. Use niche marketing to your advantage and make sure to consider emerging and ow-competition markets for an even greater impact.

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