Let’s talk about the advantages of niche marketing.
There are many reasons why the smartest marketing strategy for a startup in any industry is to go for niche marketing.
You may now begin to wonder what niche marketing is all about.
Well, I’m going to give you a working definition of niche marketing.
Here is it.
Question: What is niche marketing?
Answer: According to David Frey, the term “niche marketing” refers to marketing to customer groups that fit the demographic and psychographic profile of your target market.
In the layman’s language, therefore, you are doing niche marketing when you focus on marketing your product or service to a specific customer group whose unique characteristics you had already taken time to define properly.
We now have a fair idea of niche marketing. What next?
I want us to go a step further. We are about to identify the reasons why niche marketing will be a great choice for your small business.
Niche marketing produces the below positive conditions for your products to thrive in a competitive business environment.
Products are more desirable.
Under niche marketing, products are well-tailored to serve a particular purpose.
For that matter, prospects who belong to that niche will find the products most suitable for their needs.
Niche products have a way of quickly building a solid group of loyal customers. For most of these buyers, it is either your service/product or nothing at all.
Brand popularity grows quickly.
It is easier to market a brand that restricts itself to catering to the needs of a specific demographic.
One reason for this is that people who think alike and have the same interests tend to share their knowledge and findings.
This is how your company name can spread like wildfire within such a group of potential buyers.
The narrower you go down with your niche, the less competition you’re likely to face.
The big boys are doing something bigger. They tend to sell to larger groups with diverse needs and characteristics.
What you need to do with your niche marketing strategy is to cut a tiny slice of that market for yourself. Then work on serving only that fraction of the larger niche.
Quickly, you’ll discover opportunities to cater to underserved interests. These have been largely ignored by the big players. And with you now in charge of that segment/product line, you’re sure to see your business take off successfully.
Prospecting is less costly.
Because you have a narrow base on which to concentrate your efforts and resources.
The possibility of spreading yourself too thin may not arise anymore. You can easily reach out to your customer base. As you can see, business will begin to progress smoothly as advertising and recruitment costs go down.
Niche marketing is the ideal choice, particularly for businesses that lack the resources of big corporations. The advantages speak for themselves. This is why I encourage you to go for niche marketing for your startup.