Niche Marketing Defined…
In business, the word ‘niche’ is defined as: “A special area of demand for a product or service”.
‘Marketing’ is defined as: “the action or business of promoting and selling products or services, including market research and advertising”.
If you put the two together, niche marketing means buying or selling a product or service in a special area of demand.
All that really means is that a specific product or service is being spromoted to the people who would be most interested in that particular product or service (target market) and not to everyone in general.
Even big businesses still use niche marketing for specific segments of their marketplace.
For example, a company that makes computers and computer accessories might advertise all-in-one copy/printer/scanners to the home computer user, while at the same time advertising single function machines to large businesses.
One of the things that make niche marketing so attractive to sellers is that their advertising budgets go much further when you are targeting smaller segments of the market.
It costs less to advertise to a specialized market than it does to advertise to a broader market, and the results are better because your efforts are targeted.
Niche marketing needs to be designed to meet the unique needs of a very narrow targeted audience. Marketers must tailor the benefits of their product to meet those specific and unique needs of that group.
If, for example, you have designed a product to make poodle grooming easy enough for the untrained professional to do it, those who own poodles will be most interested in your product. Those who own Blood Hounds or cats wouldn’t care less.
If you have written an e-book that will explain how to start and succeed at an online business, those who are looking for that information are your niche’s target market. Those who are happy doing what they are doing are not interested at all.
Niche marketing is an effective and cost efficient way to advertise and sell specific products or services to a specific audience or, hopefully, buyers of that product or service.
Many large companies today, first started out with a niche product, and then gradually grew to their present size. Diversification came later, after they first established themselves in the marketplace…