Many entrepreneurs think that in developing their small business marketing strategies, they are best off selling to the widest possible market. They are afraid to pursue a niche because they fear they'll lose business by turning away customers. The truth is that if you are not marketing to a distinct group of customers and offering them a unique solution, you will not be heard or found online.
Benefits of Niche Marketing When you market to a specific niche, you can focus your marketing resources. You understand the needs and language of your niche, so you can communicate better with them and speak directly to their situation.
By focusing on a niche, you become an expert at providing your service or product. And as an expert, you command higher fees and leverage your efforts to create multiple streams of income.
Above all, when you target a niche, you can differentiate yourself. You significantly reduce your competition and create a distinctive personal brand.
Niche Definition There are many definitions of niche and target market, and the two are often used interchangeably. But there is an important distinction.
A target market is the group of people most likely to buy your product or service. They are the people to whom your product is being marketed
A niche adds another dimension. A niche combines your target market (WHO) with the solution you are providing (WHAT). When you combine your "what" with your "who", you have your niche.
Niche = target market (who) + the problem you are solving / need you are fulfilling (what)
The key to understanding niche marketing is realizing that people don't buy a service or product, they buy a solution. That solution can help them solve a problem or achieve a goal. Being a solution provider is critical for good relationship marketing. When you become the solution provider for your target market, you are a winner.
How to Find Your Niche To identify your niche, is it best to start with your "who" or your "what"?
You can go either way, but in many cases, it is best to start with YOU.
You can't be great at everything, but there is an area in which you have something special to offer – a unique skill or perspective or approach. What is unique about you and what you have to offer? What are your passions, skills, interests and expertise?
Once you have identified that, think about who wants what you have to offer. There has to be synchronicity between what you have to offer and what your target market wants. When you find that connection, you can identify your niche.
Remember, there is only one YOU, and you will ultimately attract those who find you compelling. Be true to yourself and you have the ability to help other people in ways that nobody else can.