You are likely to fail if you do not find a niche market for your product or service.
Most newcomers in business market to everyone with the expectation that everyone will do business with them.
Niche marketing is the key to developing a profitable business.
Find a product or service you are passionate about and find a niche market for it. It is the only way you will be able to devote time and effort to creating a successful business.
A niche market comprises individuals and businesses that have similar interests and needs, that can be readily identified and easily targeted and reached.
In order to define your niche market you will have to carry out research to see if there is a market for your product.
Make sure you create a profitable business for your niche product by asking yourself: is there sufficient demand for my product or service?
The danger of choosing a field that is too broad might make it hard to stand out from the competition.
Often business owners view a niche market as narrowing their sales or cutting into a profit margin, so they're afraid of it.
The truth is that a niche market is a component that gives your business power. It allows you to define who you are marketing to.
When you know who you are marketing to it's easy to determine where your marketing energy and money should be spent. It enhances your focus.
You need to focus on a certain audience or else your marketing will be like a drop in the ocean.
For example, if you sell cars you should know what kind of people will buy the cars and where they live.
It is also important to localise your marketing strategy to suit your target market.
Defining your niche market is important because:
lIt gives you the ability to maximise your marketing budget by targeting your defined niche market;
lYou know exactly where to advertise;
lIt is much easier to develop ideas for new products or services that inherently appeal to people you want to sell to; and
lYou get an opportunity to establish yourself as a leader in your industry.
Define your niche market by asking yourself:
lWhat do my clients have in common?
lHow do I set myself apart from the competition?
lWhat's different about my services or products?
lWhat are the "extras" that I bring to the market?