Sometimes, deciding what niche to focus on for your niche marketing business can be quite difficult. How do you choose when there are so many possibilities? Other times, the answer quickly becomes as clear as day.
Whether you have a concrete idea and are ready to roll, or need to spend a little time deciding just what niche is right for you, you will need to do some research before truly beginning your niche marketing business.
Your niche should be something you enjoy (like hiking, biking, painting or cooking) but that also allows for you to fill a void in that niche. For example, if you enjoy cooking with organic ingredients, maybe you can provide a product like an organic cookbook, offer recipes of the month and exclusive coupons for organic foods.
Just be sure you know what you are talking about and enjoy it, because it will quickly become your bread and butter, both literally and figuratively!
Once you have chosen your niche, you will then want to ask yourself the following questions: (All may not apply.)
* What is the formal definition of this niche/topic?
* Who is typically interested in this niche?
* Who is/are my target market(s)?
* Is there a broad target market? Or a narrow target market?
* Are there many other marketers already catering to this niche?
* How can I stand out from other marketers in this niche?
* How will my business/offering be different/better/valuable?
All of these questions and more are critical to answer before getting to work. Why? Because it is absolutely critical to understand what you are doing before you begin doing it!
You will also most likely need to differentiate yourself because unless you have hit the jackpot with an off the wall, yet realistic idea, you will most likely be joining a niche that already has marketers catering to it.
How do you stand out? Well, you begin by offering quality products and services. Don’t just say you know what you are talking about. Actually do the research, put together valuable information, and provide your customers with something your competition isn’t; Expertise!
Your target market/customers will soon realize that your products are better than the rest and that your commitment to customer service is what truly sets you apart. Respond to requests in a timely manner. Act on calls to action, like increased functionality or product improvements. And pay attention to feedback. What your customers are saying to others is often just as important (if not arguably more) than what they are saying directly to you. While not everything they say is worth listening to, 99% of it certainly is. Just as the old adage goes in the restaurant and retails businesses, the customer is always right!
Effective businesses analyze their competitors as closely as they do their customers. Studying and evaluating competition help owners decides where to compete and how to position against the competition in each market margin. Global competition requires constant analysis of competing forces. Competitive strategies need to take advantage of opportunities and to avoid threats. Market leaders and competitors cannot fulfill market-fulfilling role unless customer needs and desires are understood and satisfied.
By attempting to expand market size, dominant companies continuously defend their current business against rival attacks. Businesses that are second, third and lower ranks are often called runner-up, or trailing, firms. To avoid being a follower in a large market, many attempt to be a leader in a niche, a smaller market
However, there are many myths surrounding niche marketing and the opportunity it provides for making money. Although many have questioned the possibility of great success by marketing to a niche, or small market group, it can and will be profitable if you do it right.
So how do you separate fact from fiction when it comes to niche marketing and how you can benefit from it?
Here are 3 of the most common myths that surround niche marketing and the truth behind them.
A small market does not dictate a small profit. Sure this can be true, but it is a blanket statement to say the least. Take for example the market of multimillion dollar residential real estate. This is arguably a small market as most of us are not in the market for such expensive homes. But there are some who are and the realtors who sell to them make anything but a small profit. In fact, they probably make more off of one sale than most of us do in an entire year! Therefore, just because you are focusing on a particular segment of a larger market does not make your earning potential small. It makes your target more focused. Think about Starbucks. Who would pay over a buck for coffee? Hmmm. Howard Schulz proved that niche markets can change from a small market, small profit to large market, large profit.
Are you familiar with the old adage, less is more? Well, it’s a phrase that carries on in its infinite wisdom for a reason. It’s true! And it is especially true for niche marketing.
You will never hear of a carpenter who manufacturers handcrafted rocking chairs begin to offer leather sofas. Why? Because he has a specialty and knows there is a very specific group of people who enjoy and appreciate his work. Just the same, you may never hear of a fast food restaurant offering five course meals. Again, they know their market, they understand what their market wants, and they stick to it.
You should do the same! Remember, you can’t sell everything to everyone. You should focus your efforts and continually work on perfecting them. That is how you will set yourself apart and gain the trust and respect of your customers.
If you’ve ever stepped foot in a store that is right ANY store, you know that this is far from the truth. How many times have you walked into a grocery story for a gallon of milk and walked out with a carton of eggs, a candy bar, magazine and bottle of water?
Or, how many times have you walked into a shoe store and bought a second pair because they were buy one, get one half off?
Or, how many times have you stocked up on your favorite perfume or cologne because it was being discontinued?
We’ve all done it. We are consumers and we live in a consumer-drive world. Therefore, people don’t just buy what they need. They buy what they want. Hopefully, you are providing them with both!
Footwear company KLAS Shoes LLC of Bedford offers a full children’s line, under the name Roc-A-Bouts, along with three lines in the adult health and wellness category — Rotasole, KLASFit and Strolleez. Its shoes are sold in at approximately 300 individual store locations nationally, including many independent retailers in the mid-South, as well as some online retail venues. The company was founded in 2008. Not a very good time to establish a company. Gross sales are now over $6 million.
Every successful business venture starts with a plan. Without one, how will you know where you are going and how you will get there? This is part of your strategy (competitive strategy). Take the time to not only become familiar with your niche and target market, but set goals for yourself. For entrepreneurs, this is especially critical.
Set a date for when you would like to launch your niche marketing website and business and do everything in your power to meet that deadline. As you move forward, continue to set goals and timelines to follow as a way of keeping yourself on task and on schedule.
Be sure to set a budget and stick to it. If your plan is to invest $100 or even $1000, set up a budget that allows for expenses that stay within your means. Sticking to your budget will be a large deciding factor as to whether or not your business becomes a success.
Of course, the purpose is to make money, but you must set realistic financial goals in order to meet them. In other words, say your ultimate goal is to make $5,000 a month. Well, that is a great goal. But is it realistic for your particular niche?
Your potential for revenue will directly depend on what you are selling and whom you are selling it to. Some niche markets lend themselves to higher profit because of the value of the product being sold (like limited edition watches), while others require more volume in order to meet high revenue goals. Neither one is better than the other, it just depends on your individual business scenario.
No matter what your goals or how extensive they are, the most important thing to remember is to be realistic with yourself first. If you are, and you know and understand your boundaries and limitations, then the rest will follow and your goals will be that much easier to achieve.
Also read: SEO and The Significance in Niche Marketing at http://garyrushin.com/2012/07/seo-and-the-significance-in-niche-marketing/
Most entrepreneurs get involved in niche marketing for one reason and one reason only–to make money! Well, you can too. All you have to do is be sure to pick a niche you are interested in and go from there. This is all about leveraging the web in your competitive strategy.
To get started with your new niche marketing business, you will need to create a website that is professional looking, easy to use, and fully functional for a complete and positive user experience. Things to consider include visual representation of your niche through captivating design; easy to follow navigation; user friendly e-commerce solution; and the ability to optimize content and code for search engines and linking campaigns.
There exist a number of helpful software products available that will help you create an effective and successful niche marketing website. Products such as WordPress not only help you design and build your website, but they show you how to optimize your pages to maximize your efforts and your business.
However, when selecting your site software, be aware of scams and imposters. There are a lot of so-called cheap and easy software products out there, but many are less than desirable when looking to create a truly great website that looks professional and actually works well.
The website building software you choose should be:
* Affordable within your budget
* Have readily available, positive reviews
* Provide support from set-up through launch and maintenance
* Offer downloadable updates to ensure seamless integration and use moving forward.
If you are unsure of which software to use, ask around. Visit other niche marketing sites and try to find out what they use. If all else fails, go with more popular software because although it may come with a higher price tag than some others, it is often tried, tested and approved by users across the globe.
2 Essential elements of a niche marketing strategy must be considered:
Ask yourself does niche marketing match up with the resources, capabilities and preferences?