Getting your company to stand out from your competitors isn’t always easy. First, let’s get straight what a niche market is and how one comes to be. A niche market is not a smaller audience. Instead, it is narrowing your marketing to target a specific subsection of your target audience. Niche marketing hones in on one particular attribute of your product. It looks to satisfy a need that a smaller clientele inside your target audience has. A niche market develops when you meet a need or desire not fulfilled by others in your industry or if you do it in a new and better way.
Okay, let’s take a look at a niche market example. First, you’ll design your target audience. Companies designate a target audience, so they don’t reach out blindly to a mass market. Mass marketing wastes advertising money on people who have no need for what product or service you provide. For example, let’s say that you sell pallets. Because you sell pallets for shipping, you’re going to stay in a local demographic.
Furthermore, you’re going to stay within industries that would require pallets and have shipping responsibilities. Additional research will likely provide you with an age demographic. Now you have established your select target audience.
Now that step one is complete, let’s look at what you do that makes your company unique. Your pallet company also has the distinction and unique ability to ship under strict medical clean shipping guidelines. Clean shipping guidelines have a lot of rules that shippers must follow. Therefore, most local pallet companies cannot provide this subdivision service that your company offers. This sub-service gives you a niche market, an untapped subsection in your already established target group. You fulfill a particular need that many others do not or that you can do better.
Consequently, you now have all of the above demographics and include your new niche audience. In this case, industries such as medical, dental, veterinary, drugstores, pharmacies, etc. By taking on clean shipping pallets to transport medicine, you’re dealing in palettes for shipping and explicitly catering to the niche audience. Congratulations, you found a niche market.
That means your marketing strategy will now target a smaller number of individuals who are far more likely to purchase your product or service, the niche audience. Although you are reaching fewer people, these potential customers have a need you fulfill which means they more easily convert to sales. Niche markets are beneficial because you offer something that others do not. You might provide it better than the competition, or you may present something hard to come by. Either way, you nail down a niche marketing strategy by focusing on what features you have that your industry competitors do not.