One of the first steps in defining a marketing strategy is to identify a target audience. Who is the main group who will be buying your product or using your services? Defining your niche market and establishing a clear picture of whom it is they are marketing to is critical in the overall health of your business. Defining your niche does not narrow your sales or cut into profit margins, rather, it helps define your client base. Let’s examine the importance of identifying your niche in business and how this can be done successfully.
What is a niche?
According to Entrepreneur, a niche is defining “with whom you want to do business.” Be as specific as you can: Identify the geographical range and the types of businesses or customers you want your business to target. If you don’t know whom you want to do business with, you can’t make contact. These days, the trend is toward smaller niches. Also a niche is NOT a field of business. For example, retail clothing business is not a niche but a field. A more specific niche may be “maternity clothes for executive women.” Unlike conglomerates that target the masses, niche businesses cater to highly defined markets that are often over-looked, undeserved or disenfranchised by larger competitors.
How do you find your niche? Here are some tips to help focus in on a niche audience.
- Be Clear about What you Have to Offer – what do you sell or what service do you provide? Who can benefit from your product/service?
- Don’t Become a Jack of All Trades – Decide what you specialize in and do it well. In fact do it so well that you become an authority on your service/product.
- Find an underrepresented market – Many markets become over saturated with small businesses or start ups eager to get in on the action. But for a business niche to really stand out, it should be underserved or even neglected.
- Look for Growth potential – Is the market you’re targeting likely to grow? Capacity for development and growth means your niche is more likely to support the development and growth of your business.