You’ve probably heard the term “niche” thrown around a lot lately, but how does it apply to marketing? All efforts in niche marketing are directed toward a specific group of people, products, services, and so on. Niche marketing allows you to focus your efforts and reach out to specific audiences who are more likely to be interested in the services and products you have to offer. As with any marketing strategy, there are some niche marketing advantages and disadvantages to consider before committing, which we’ll go over today. Let’s get started without further ado.
Niche Marketing Advantages
It’s a simple equation, really: if you’re targeting a specific demographic, location, or service, there is less competition to worry about. Instead of competing with mass markets that cater to a wide range of audiences, your specialty in one specific thing might just be your ticket to success. For example, if you’re a hairstylist selling your personalized brand of scissors, you are mainly marketing to other hairstylists like yourself, meaning you don’t have to worry about your local supermarket being your competitor. Niche marketing doesn’t eliminate all competition, however; it just significantly narrows down the competition pool.
Consider this: if your tooth suddenly begins to ache, who are you more likely to visit—your GP or your dentist? Once you’ve established yourself as an expert in a particular field, your opinions and recommendations in that field are more likely to be trusted and valued. Having one thing you are exceptionally good at shows people that they can rely on you to solve their problems, and the more you do it, the better you get at it! Instead of attempting to be everything at once, focus on one area and become an expert in it. Your audience is more likely to trust you, increasing your brand‘s credibility.
Although targeting niche audiences is a great strategy if you specialize in one thing, the number of interested customers you can reach is significantly lower than in mass markets. There is always the possibility that, despite targeting a niche audience, there are people interested in purchasing your services outside of that small circle. This could mean you’re passing up huge opportunities because you’re not advertising to them, stifling your company’s growth. This is why niche marketing is ideal for small businesses with limited resources; however, if you intend to grow your business, you may find that niche marketing will no longer suffice at some point.
In general, low profits in niche marketing are a direct result of catering to a smaller market. It’s not very likely that you’ll make a lot of money from niche marketing unless you can compensate with higher prices for your products and services. It makes sense because fewer people are likely to come across your brand and purchase your services. Again, this can significantly thwart your business’s growth, especially if you’re looking to expand. Make sure you carefully assess the scope of your business and determine whether niche marketing is truly the best option for you.