A niche market is simply the subset of a larger market segment, that a particular product is meant to serve. The segment itself defines the product characteristics aimed at meeting pre-defined market needs, the price range and the demographic that it’s meant to address. It’s also quite often a small segment within a larger market segment. This means that there is usually less competition for the product in this smaller market segment than in larger markets. Niche marketing is especially effective when targeting younger, more affluent or male customers.
Targeting younger audiences and males can be particularly difficult because they have an unlimited number of possible sub-segments and target audiences. In fact, marketers have been trying for years to figure out what makes certain types of audiences tick. While brand loyalty and past purchase behavior are still important for most markets, certain sub-segments like the under-30-year-old consumer have become more difficult to reach using traditional methods, like cross selling or “lifestyle” advertising.
Enter niche marketing. Niche marketing is a marketing strategy that relies on a narrow focus to reach a very targeted audience. Unlike mass media strategies, such as television advertising, radio advertising, etc., which target an entire population, niche marketing only targets a particular audience. This ensures that each individual advertisement will be successful because the audience will be very likely to respond to it.
One of the benefits of marketing to a specific audience is that response rates are much higher than with general or broad-based advertising. Because responses are targeted, marketers are more likely to get conversions, which leads to higher overall profits. This is because each response is an individual transaction, rather than a generalized “yes/no” decision.
Before engaging in niche marketing, a marketer will perform a few basic services to determine if a target audience is a good fit. First, they’ll conduct keyword research, to identify competitive keywords that have not been tapped. Keyword research can be done with free tools online or by hiring a professional service. The purpose of this research is to identify which keywords are most likely to attract buyers in the target market.
Next, marketers will perform basic market research. This includes researching demographics data, looking at existing customer data to identify buying behavior, and studying search engine optimization (SEO) strategies to find key phrases related to the target audience. Marketers will also do research to find out what types of advertisements will be most attractive to the target audience. While some niche marketing efforts include television advertising, radio advertising, and print advertising, most marketers prefer web marketing. Many marketers choose to pay per click (PPC) advertising to promote their businesses because it is a very effective way to reach the audience. They can specify how much they are willing to spend and get results because visitors to the website will often be highly qualified buyers.
After conducting all of this research, marketers will be ready to define niche marketing. This involves identifying one or more target markets to promote to. Then, they will determine the best strategy for advertising to that target market. If they choose traditional media advertising methods, such as television, radio, and print advertisements, they will also need to determine how much of that budget should go towards pay per click (PPC) advertising. Finally, they will work to create social media marketing campaigns that will attract visitors to their website.
While niche marketing can draw traffic to a website, it can also be used as a mass-marketing strategy, especially for products that aren’t well known or that don’t generate many dollars in profit. Instead of waiting for a target audience to find them, mass marketers choose to locate large groups of people who share an interest in a given subject matter. They then use their knowledge to market directly to them. The internet provides a great way for these companies to do this successfully, and it has opened the door for countless new businesses to grow their business.