Chat with us, powered by LiveChat

How to Find Your Niche Market

Key Takeaways;

  • niche refers to a small and special part of the market where our product or service are focused on meeting the needs of its special customers
  • Finding a niche is important for small business owners who want to not only create a steady stream of revenue, but also establish a loyal audience.
  • the rule of social media in niche market is helping you to find out information about different brands, products and services
  • Niche +problem + solution + promise = success

Before we elaborate on how we can find our perfect niche market, let’s see what exactly niche is. 

What is Niche?

According to the available definitions, the term niche refers to a small and special part of the market where our product or service are focused on meeting the needs of its special customers. Niche marketing as a meaningful marketing is actually focusing marketing activities on a small, well-defined, and well-defined segment of the market.

There is actually nothing as a “niche” out there, but Marketers "create" niches by identifying needs and wants that have never been met by other companies. In general, in niche marketing, we try to become a big company in a small market.

Many organizations have turned to the niche market to gain market share and maintain brand loyalty.

Before you start niche marketing, you need to know the area in which you intend to work. Niche marketing is a sub-branch of a large market with unique needs.

 

Niche marketing has 7general steps, including:

1. Find and select a segment of the market that has a specific and unmet need.

2. Conduct market research to determine market size and idea feasibility

3. Ensure branding feasibility in the niche market

4. Identify distribution channels

5. Planning for market access

6. Performance

7. Keep an eye on your market to make sure strategies continue and identify opportunities and threats

 

What makes niche marketing so important?

Finding a niche is important for small business owners who want to not only create a steady stream of revenue, but also establish a loyal audience. Creating a business in a niche market sometimes gives entrepreneurs the ability to charge higher rates for their products or services. There are other reasons that state why finding a niche market matters, including:

·        You will have more targeted advertising and marketing.

·        You can quickly become a successful brand in your field.

·        Your customers become an advertising medium for you.

·        You will know where to find your potential customers.

·        It can reduce the costs.

·        You will have high sales.

Growing in a niche market is way easier than growing in big markets as people have specific needs that you are targeting. If you work on a part of market that the big companies and brands have never paid any attention to, you will develop and grow your business without attracting the attention of our competitors, and so you do not have to waste time and energy solving the problems they may cause you down the road.

Imagine you are developing technological tools for online meetings, you will absolutely have many competitors. Finding your perfect niche market can be developing a platform which is only designed for teachers to run their online classes, and offer some novel features that can be able to separate you from other businesses doing the similar thing to you. By doing this, you will not have to cover a big range of tastes and expectations, and you only spend your time on working on specific products with is more profitable.

If you are struggling to find your perfect niche market, here are some tips that will hopefully be practical for you.

 

1. What you have passion for?

If you are an entrepreneur or a new business owner, you are probably working on your new ideas hoping for positive results. When developing your business you will absolutely have to jump through many hoops, but having an interest or passion in what you are doing can lower the risk of failure and help you find more novel solutions with planned moves. This does not mean that you have to love every single part of your business, for example you may be interested in manufacturing mechanical tools by 3D printing technology, but you hate to use the modeling software to design your product. You can ask other people to help you with the parts you do not like to do on your own to stick with your business. Do not forget that your niche should arise naturally from your goals, interests, and values.

To find out what you are interested in, you can take several steps, including

·        Create a list of the things you like as soon as possible

·        Identify the topics you like to learn about most

·        Mention the companies or organizations you belong to

·        Say what you do in your free time (your hobbies and leisure time activities)

 

2. What needs can you meet?

The trick to coming up with a unique product or service is to look for unmet needs. For example, one East Coast entrepreneur's business is creating hand-made medieval outfits. Large retailers and even shops that specialize in costumes do not supply these types of garments.

Processes can be products as well. For example, someone once considered the inkjet printer cartridge and came up with the idea and process for refilling them.

After you prepared your list of topics, what you are going to do next is to run a search to see what people’s problems and needs are. Finding the problems your target customers are facing is a big steps toward a profitable business, but this only happens when you know how to solve those problems.

There are a variety of tools (including free ones) you can use to give you a hand as you explore your customer persona.

Here’s how you can identify problems in specific niches:

·        Take a look at various forums. Search Quora where people ask their questions and talk about the problems they are experiencing. What questions are asked more?

·        Keyword combinations on Google Trends can reveal what search terms are popular.

·        Have a direct conversation with your target market that helps you have a clear framework for your business.

 

3. Are your products/services unique or marketable?

You might come up with all kinds of creative and original products and/or services, but if no one wants what you’ve produced, they're of little use. Additionally, although you are targeting a niche market, there must be sufficient demand for your product for you to make a profit.

To determine demand, you must gauge your market and conduct extensive market research. If you want to know if there’s a market for your product, the best way to find out is to reach out to your target market, pound the streets, and ask.

It is worth mentioning that Marketing is perhaps more important for niche businesses than for any other type of business because consumer awareness of your product is low. Your success or failure hinges on making the connection with exactly the right type of customer or client and making them realize that they need your product.

 

4. Who are your competitors?

When you start a new business it is worth logging the competing sites you can find on the Internet to do an analysis which is necessary. The purpose behind this analysis is to know where you are standing and see if you can grow or not. The truth is that when you are not aware of the competition in any niche, you will not be able to standout in the crowd. The reason that most blogs fail after some time is that they never do their research in the first place.

Here’s how you can identify your competitors in a niche market:

·        Search your targeted niche on Google

·        Check if the top results you get are based one focused niche (If they are focused on one specific niche you will know that they are your strongest competitors.)

·        Got a complete list of competitors? Collect information about them next using good SEO tools like Semrush or Ahrefs (There are free tools out there as well, but they may be less accurate) to see how strong your competitors are

·        Found hard-to-beat competitors? We suggest you to leave it and search for other keywords or fields of work. Have a very right strategy to beat them? Jump into the niche but never compete directly with the biggies because it takes forever to rank.

·        How old are your competitors in this business? Are they old enough to make it difficult for you as a newbie to compete with them? Alright. Get yourself some authority first, then you can think about trying out your skills to some popular competitors.

·        Be aware of the keywords you are looking for on the Internet, as in SEO they are so highlighted.

 

5. Is your niche profitable?

It is better to focus on ever niches than trends that come and go. Just enter your keyword or niche idea in the search bar at http://www.google.com/trends and check if it is a rising or at least a stable niche for you to enter.

 

Ø  The best niches are ones with both physical and digital products available on sale and lots of them. As an example, Internet marketing is one of the most profitable niches available, but it’s pretty much only digital products on sale.

Ø  If you are seeing lots of products with thousands of reviews, you need to know that it’s a good sign!

Ø  Seeing even 3 or 4 of products is enough to know there's some demand as people wouldn't create products if they couldn't sell them.

Ø  If you see a high gravity on a product, it means that the product is so popular. The Gravity number is an unique algorithm from Click bank that takes into account the number of unique affiliates who have sold at least 1 copy of that product in the past 7 days. If the niche you are looking for has a high gravity, it means that it’s profitable enough, and people are making money in such market.

 

6. How to reach audience?

When you focus on highly specialized content, you won’t have mass appeal, but you can make one audience really happy. That’s what niche marketing is all about.

Potential customers always welcome products that meet their needs, and this makes marketing much easier.

If you are developing content, create something to delight and satisfy, and the word will spread.

When trying to connect with a new-to-you audience, some risk-taking is necessary. But a point comes where you need to validate your efforts with results.

Here are some examples of the audience suitable to reach for niche marketing:

·        Those who love pets but are always on the go

·        Those who have recently bought a house and are interested in modernizing the space and interior design of the house.

·        Environmental activists focusing on combating groundwater pollution

·        Others

Audience targeting options boil down to three dynamic selections:

Core audience:

Reach individuals based on their location(s), behaviors, demographics, and interests

Lookalike audience:

Reach new individuals who meet criteria highly-similar to those most engaged with your advertisements

Custom audience:

Reach and reengage your existing audience (website visitors, email subscribers, and/or those engaging with your social channels)

If your site or campaign is relatively new, Core Audiences are an ideal starting place.

 

7. Write your own business plan

Create a plan in which you define exactly what you'll provide and the need it will meet, describe your ideal customer, and decide on a pricing model. Fine-tune your business idea to reflect what you've learned about your target audience.

·        Clearly, state who your target niche is.

·        Specifically name the problems people in your niche have that you will solve.

·        DON’T talk about your niche. Just Name it. Clearly and concisely.

·        DON’T try to be all things to all people and forget about fix-to-all solutions. The whole point of a niche is to include only certain people and leave others out.

 

Ø  Stated simply, the niche statement formula is as follows

Niche +problem + solution + promise = success

Then get your target niche’s attention, and get ahead of the competition.

 

What is the role of social media in finding the niche market?

Social media serves the purpose of making it easier for consumers to find out and distribute information about different brands, products and services. A significant percentage of customers that relies on the internet to search for products have discovered specific companies through social media.

In niche marketing, by managing social networks and targeted activities in it, you can:

·        Get to know your audience quickly.

·        Spend your marketing budget better.

·        You will find out what kind of marketing your target audience responds to positively.

 

Final advices

Once starting your business remember not to be obsessive at the beginning and do not spend a lot.

Although you can produce a lot of products, the best option is to focus on fewer but higher quality products. This will make the choice easier for the customer.

Keep in touch with customers and give them the information they are looking for in that particular market. Give them the feeling that they are valuable to you.

It is better to take SEO training so that you can meet your needs at least at the beginning.

Match yourself to your customers’ personality traits. For example, some customers respond better to emails while others have better video communication in other markets.

Do not underestimate your competitors and be superior to them by studying and practicing information one by one.

 

Keep in the Loop

Want to keep updated with our learning and insights?

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.