When you start your own business you realize the importance of having a marketing strategy to increase your sales. With niche marketing you can do it, and it has become a very simple way to target users with very particular characteristics.
If you are a small business you must take into account many elements. You cannot compete on equal terms with large corporations, since they have more budget and experience that they use to their advantage.
Niche marketing is a fantastic, low-cost, non-invasive alternative that will help you make your business profitable from the start. Let’s see how you can implement it:
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What is niche marketing?
Niche marketing is one of the many types of marketing that exist today. This methodology seeks to take advantage of the characteristics of a small niche market that fits the benefits of your product or service.
From here, multiple strategies are created to target a very specific segment of customers, who have demonstrated that they’re interested in what you’re offering.
Have you seen how large multinationals use million-dollar campaigns on radio, TV and social networks to promote their new products? Well, you can’t do it because you don’t have the size, budget or customers for it.
This makes niche marketing a more than interesting option. Many specialists say that the more specific a segment is, the more possibilities you will have to sell a service without having to make big investments.
It is time for you to join this new trend.
What is niche marketing for?
If you’re starting out in entrepreneurship you will have realized all the alternatives you have to promote your products. We consider that niches are a very interesting way to use your resources.
And all this because you are based on a small group that in many occasions has been marginalized by the big brands. We’ve seen people who have very specific needs and can’t find products for them, and that’s where you come in.
Traditional campaigns have a lot of bottlenecks, even more if we add the fact that less and less people believe in them. If you identify a good niche and have the right product, you have a lot to gain.
This is what niche marketing is for, to penetrate a market that has few users but many needs to be solved.
Some of the advantages of niche marketing
Yes, niche marketing offers many advantages to you as an entrepreneur. Want to see each one in more detail? Find out in the following list:
1. Lower outreach costs
What we like most about niche marketing is that because it is so segmented, its cost per click is very low. Test it with a large market and you will see how expensive it will be for each click on your ad.
If you have a limited budget or want to see how feasible this idea is, you can use this type of marketing. If it works, profitability will be almost assured, since they are customers with very specific needs that have not been solved.
2. Less competition
Specific needs are the main foundation of niche marketing. If you want to stand out from the rest, you must find those items that make you unique and unmatched in an increasingly competitive market.
Here’s an example: have you seen any ice cream parlor that has opened in the last few months in your city? Well, how difficult do you think it would be to promote it if there are 10 or 15 in a radius of 20 kilometers?
Maybe it’s not that easy. Now, if the ice cream shop sells artisanal products with organic ingredients and no artificial additives, would you be able to promote it? Of course you can, and it’s all due to the very precise niche you’re targeting.
3. More loyal customers
Loyalty is one of the most important aspects of any business. Without loyalty no company can sustain itself and you will have to go out to the market every month to get new users to buy your products.
Segments that are so specific are characterized because users have not been attended to for a long time. So if a brand comes along that solves their needs they will become very attached to the brand in no time.
Do you know what the best part is? When they like your product, they themselves will make the most powerful advertising that exists: word-of-mouth recommendation.
This makes it essential to select very well the niche you are going to attack. If you do so, you will have gained a lot of ground.
4. It adapts to the audience
Being a small number, you can focus on the needs of your clientele without thinking about the great mass that abounds in the market.
Your duty is to make sure they are satisfied so that they are loyal only to your brand and you will take advantage of the competitive advantage you have acquired.
Disadvantages of niche marketing
You didn’t think it was all going to be roses, did you? Niche marketing has a number of questions and disadvantages that you should evaluate before making a decision. Let’s take a look at some of them:
1. Very small size
Yes, the reality is that niche markets are usually quite small. So, once you conquer the users you will have little chance to grow because the demand for the product remains the same.
Unless they recommend you, it is unlikely that your company will have a position of power in that niche. That is why it is necessary to study very well where we will invest our resources.
2. High possibility of failure
Niches are likely to fail if large companies become aware of this strategy and enter before you do. If this happens, your options will be limited and it is very likely that you will have to go elsewhere.
This can also happen with product innovations, so you should make this decision very carefully.
As you can see, niche marketing is an excellent option for your business to take its first steps in the market. Beyond the disadvantages, we believe that it is the best way to compete against the big emporiums that exist today.
What do you think about niche marketing, do you think it fits your business or do you have any other alternative? Leave us your impressions so that other users can make the right decision, as always, in the comments.