What is a Niche Marketing Strategy and do I need one is a question that is asked all the time.
You see, a big mistake that small business owners make is when they try to market their services or products to a large general market, instead of focusing on a sub-niche marketplace.
The most difficult part is to convince a business owner that they should start off small, and focus on a specialized sub-niche market because in their minds, everybody could use their product or services and if they limit their market by selecting a smaller less competitive sub-niche, they will get fewer sales.
That is true but…
If you think about it logically; if you wanted to market your product or services to the world, then there is a cost factor to take into consideration and a big one too!
In order to market to the masses, you would need a big budget to invest in regional, national and international marketing campaigns.
This is pretty much beyond most business owners budget because that is where you will find all the major companies, such as Wal-Mart, Costco, Kroger, Home Depot and Target just to name a few.
These companies would have an unlimited amount of capital to invest in when it comes to marketing strategies, and well out of our league.
Nowadays to be successful in this extremely competitive industry, you absolutely must focus your business on serving a specialized sub-niche market also known as a micro niche market, to greatly increase your odds for becoming successful and with much less risk.
If you require a more in-depth account of what a niche is, how to find a profitable one and how to make money with it then check my review on Niches and how to find a profitable one.
What are the advantages and disadvantages of Niche Marketing?
There are a number of advantages and disadvantages of sub-niche marketing, and by definition; a sub-niche market is a subset of a broader marketplace where a particular product is focused on, by defining the product features, qualities, demographics, and price range to satisfy specific marketing needs.
In other words, it is a highly specialized market segment of a top-level product.
Take for example. A TV would be part of a broader market term such as Electronics.
Electronics==> TV’s==> 4K==> Smart TV’s==> Curved==>$500-$1000
TV’s would be too broad a marketplace and far too competitive but what about something like the sub-niche of …?
A TV and its 4K and it’s a SMART TV and CURVED and it’s in the $500-$1000 price bracket. This could be your sub-niche.
What you have to make sure is that there is enough of a crowd looking for this type of product or niche, and we do this by the use of a Keyword Research Tool.
A sub-niche is a highly specialized market segment that targets a specific type of crowd that aims to survive the big company competition.
Sub-niche marketing for the small business is the only approach you should ever consider when starting out in an online business, and the main point is cost-effectiveness.
Take for instance offering a product or service for a selective demographic means that you could advertise this locally through certain media outlets so that the marketing budget would go further allowing for the budget to be stretched out over other marketing strategies.
Sub-niche marketing works well when you understand your market and works even better if you have a passion. It is always easier to build something that you are passionate about as it becomes less of a chore.
Understanding your market allows you to identify the needs of your potential audience, provide new products and services, and tailor your products in the right manner, and by communicating effectively with your target group will allow you to identify how you position yourself against your competitors.
By targeting a smaller demographic with selected products tailored to meet their specific and unique needs, you are putting yourself forward as an expert in that particular area, which increases the customer’s trust in your product, and your brand.
Small businesses cannot be all things to all customers. While being a generalist may have its benefits, defining a sub-niche market is one key to long-term success.
When targeting a smaller part of a large market your marketing efficiency increases and your brand message has more power because it is not being drowned out where there are far too many choices!
To recap then…
Unlike generalized marketing, where market competition is high, sub-niche marketing has a lot less competition due to the neglect by the major companies allowing the small business to capitalize, and besides it becomes a specialized area in its own right.
Remember, you as a business owner may find that a particular sub-niche market could be expanded by a new sub-niche market so why not create one. That way you will have no competition!
By focusing on a sub-niche market area makes it possible for the business to build their brand, and with this marketing approach will allow you to provide your customers with products and services they need and desire.
Niche marketing is all about selling to a segmented market and about taking your products and services to people who have an interest in receiving them.
In the future, it could help you to redefine your business which could lead to new product directions and services and in doing so allow you to create new opportunities for your business by strengthening the product line with similar products, and once you begin to concentrate fully on your niche, you will learn about new products, innovations, and ideas about your chosen market.
Maximize your cost savings
Sub-niche marketing makes it easy to save on the budget by cutting back on certain marketing strategies by only focusing on a smaller crowd of people interested in your particular product which allows the budget to stretch further.
As you are focusing on a smaller crowd then it is obvious that the profit margin will be smaller which means there is a limited amount of growth in the business, but don’t let that dishearten you because when you start researching your chosen niche through Keyword Research then everything will become apparent.
A Cost-effective Solution when it comes to your Marketing Strategy
There are 2 routes to consider when running your marketing campaigns.
- Paid marketing normally called PPC (Pay Per Click)
Paid marketing is the choice of many and is more direct and easy to ramp up when you have monetized your campaign. In other words tweaked the images, headings, titles, and calls to action in order to have an effective money making campaign.
This comes with a downside and that is cost. Major companies throw excessive amounts of money into their campaigns and aim for the broader market to maximise the traffic (visitors) to their websites.
All worked on percentages.
Another downside is, for that campaign to keep running, money has to be constantly thrown at it.
- Free traffic is known as SEO (Search Engine Optimization)
When mastered, this is extremely cost-effective and the campaigns can run for years with very little money.
Just think about it, those campaigns of yours will be running 24/7/365 and that’s what I call passive income.
Granted it takes a little more time, but when you have mastered SEO which isn’t difficult nowadays, then all you would do is create additional content pointing back to your product of choice to increase additional traffic.
More traffic means more sales, right?
This is where I learned all this and more…> Check it out!
Want to learn more and how everything works?
Learning just what a niche strategy is just a small area that needs exploring, get this wrong and all your work moving forward with developing your business could be in vain.
The best advice I could give would be to find an online training platform where everything is under one roof and one you can trust 100%.
Yes, I know you are probably saying to yourself, “there is no such thing”.
Well if you look far enough and do your research then you will find the right training, and if you are interested in how I learned all this and more, much more, then why not check out my review of Wealthy Affiliate.
I would like to thank you for stopping by and I hope the advice given was of some use to you, and if you have a little time on your hands please leave a comment below, and I will get back to you at my earliest convenience and reply to the best of my knowledge.
All the best
Owner – AchieveSuccessFromHome.com