Niche marketing can be best described as a strategy that targets a specific segment of the overall market and communicates messages that will resonate with that specific set of audiences.
A niche market can be set by looking at demographics (age, gender, marital status), people’s hobbies, jobs, income, life stage (college student, parent of a young child, retiree), geography, and much more. Niche marketing has the tendency to be highly personalized and very effective.
There are numerous ways to implement niche marketing, including word-of-mouth, e-mail, social communication, and special targeted events. Before we dive into ways to succeed at this kind of business, let’s have a look at two examples of niche marketing.
Most people do not consider Whole Foods as a niche business, but one must note that this business targets affluent, conscious consumers who value health and wellness. This market targets that set of customers who don’t mind paying extra for good quality and healthy food. The majority of consumers spend a small chunk of their salaries on groceries, making Whole Foods’s customers a niche market. Whole Foods focused on organic foods before people could find organics everywhere. The buzz around this brand continues today, as the stores host various events to introduce new products and consistently maintain the business’s image as a luxury shopping experience. Shoppers trust the brand to deliver quality.
Not many people know this, but this brand came into being when the founder, a former football player, wanted a shirt that wouldn’t be soaked with sweat after a few minutes of playing football. He developed a compression shirt that was made of a material that stayed dry and invested some money to produce a bunch of these shirts.
He then gave these shirts to former teammates to test, and they loved them. Word spread, people wanted more, and the company was born. Since then, Under Armour has expanded into many kinds of activewear and footwear but still targets a niche market: those who don’t want sweaty clothes when they play or train.
How To Optimize Your Strategy To Succeed in Niche Markets
A successful business requires marketing. And though there is no “right” way to market in today’s rapidly changing scenarios, there are various ways that could be optimal for your business. The trick is figuring out what works best for your business.
Strategies that work for another industry may not necessarily work for yours. Even attempting to stand apart within your industry means you need to define and redefine your specific niche. The key is to place yourself in the shoes of the consumer, trying to understand their needs and wishes. It is crucial to understand that standing out from the competition means using marketing tactics that work for your customers, not against them.
Whether you are re-examining your marketing plan or just starting your business, here are a few ways to optimize marketing tactics to ensure the success of your business.
Get To Know Your Customer
A company that doesn’t understand its target customer is setting itself up for failure. Knowing your customer extends beyond knowing how often they visit your site or make a purchase from it. It also means knowing what their life looks like on an everyday level: their habits, personality traits, and consumption choices.
Knowing your customer allows you to choose the marketing tactics that resonate most with them. Understand what tools they use and learn everything you can about them to relate better. Having events—virtual or physical—conducting surveys, analyzing social metrics, and evaluating customer reviews are some strategies businesses can employ to better know their customers.
Stick With Your Brand’s Main Goal
Broadening your portfolio or expanding your product lines is one thing, but adding a totally different product to your existing niche is another. For instance, if a business is into publishing magazines, it does not make sense for them to start an ice cream line simply because their customers enjoy dessert. Businesses must remain in their area of expertise and focus on optimizing and innovating the existing product or portfolio.
Another tactic that can highlight your goal is promoting exclusivity. The trick is to convey why your service or products are better than the rest, communicating their features and benefits.
Understand Your Competition
It’s also essential to survey your competition. Businesses need to look at other businesses that offer similar services or products to theirs. Do a simple online search to consider whether you need to re-evaluate or further optimize your content strategy. You can judge this by seeing if your business is at or near the top of the search results. That said, one needn’t dwell too much on the competition; you are a niche market after all.
Make the most of marketing tactics that are best suited to your brand. For example, products or services that are primarily purchased by certain age groups, whether older or younger, may not perform well with social-media influencers.
As is the case in many other industries, influencers are a key to success in niche marketing too. Influencer marketing is considered to be very effective and, once brands have chosen a specific niche, it is easier to find relevant people worth working with.
Collaborating with individual influencers requires a very personalized approach. A business must not simply send out a simple e-mail; tailor your approach to the individual you are targeting.
Introducing niche and industry-centric content through your website and online campaigns is likely to draw in more attention, giving you further potential to increase referrals. A business shouldn’t overlook or underestimate the power of customer recommendations. These could come in the form of testimonials, references, or even case studies.
Build Relevant Backlinks
Now that you have figured out your niche, you can begin working to reap the benefits. Building links is similar to building relationships, as you can quickly and easily position yourself as an expert in your field with the right niche keyword selection.
As you pick a very niche keyword, you will come to find that only those who are truly interested in your area of business search for this term. In turn, businesses can build better connections and attract more targeted users.
Improve your Skills
As your business becomes more experienced and you build up case studies in your niche, your skillset develops. While every business is different, you can get a feel for the methods that work best for your niche, making each campaign better than the last. The more your efficiency improves, the more your profitability will follow suit; the same applies to the tools and software you use to automate elements of your campaigns.
The Power of Niche Marketing
Niche marketing strategies can be used any time, including when a company is launching or when it’s being looked at again. While the marketing options are endless—in person, online, mail, word of mouth—personal engagement and word of mouth have proven to be most effective and likely to return greater results.
Seasoned agencies like FVG can help organizations of all sizes manage multiple projects and move the needle toward success. Our experienced marketers make it simple to create and implement detailed niche marketing campaigns without losing sight of your brand’s aim and overall goals. Reach out to us, and we will help you visualize the success of your niche business.