Have you heard the words ‘niche market’ before?
Chances are if you have entered the world of online Internet Marketing, you have probably heard this term.
And if you are a beginner it may mean absolutely nothing to you no matter how many times you hear it.
You definitely want to find out what it is and why it’s important.
If you’re coming online to market your products and you’re blogging to monetize your blog, then you will consistently hear that we should define our target niche market and blog to provide content to meet their needs.
Great idea, right? Right….So What’s a Niche and how do you find your niche market?
Wikipedia states that a niche market is the subset of the market on which a specific product is focusing.
In layman’s terms ‘a niche market is a specific audience targeted by a particular entrepreneur for a special product or service.’
That’s a simple enough answer right?
Why Have A Niche Market? Why is it important?
This answer is really, really simple.
So you know who to focus on and so you know what to focus on. If you know who your niche market is, you know who to build relationships with and who to provide valuable information to.
As the relationships are built, so may your sales in whatever business you’re in.
As an entrepreneur, not only do you have to determine who your niche market is, but what your product is. For instance:
- A writer’s niche market may be bloggers or authors. The product/service is their ‘writing.’
- A person who builds websites niche market is ‘people who need a website created.’ Their product is ‘building websites.’
Your product may not be some type of product but may be a service. You can even break it down more:
- A health and wellness entrepreneur’s niche market could be very specific, for instance, people who want to lose weight, or people who have diabetes, or people who have high blood pressure.
- An affiliate marketer for hosting will focus on people who need their website hosted.
The idea is to specify a targeted group of people that you can provide your service or product.
When I first started blogging, everyone told me focus and write to my niche audience/market. I knew exactly who they were. At least I thought I knew. I was into health and wellness, but as always in the beginning of my journey, I only received partial information.
You see, my products were health and wellness products. The problem was, and I think this is a problem new entrepreneurs face all the time, is that the ‘target’ audience or ‘niche’ market was sooooo huge.
I knew health and wellness but didn’t know I should narrow my target audience down to something reasonable. That would have been my ‘real’ niche market.
Health and wellness was too vast a ‘market,’ encompassing many products and many companies and how was I supposed to find my target niche.
What’s Wrong With This Picture?
Well, I was told ‘go to Twitter’ and follow anyone with ‘health and wellness.’ Or go onto Facebook and join groups related to ‘health and wellness.’ Write articles on your blog about ‘health and wellness.’
Well the only problem was that all of these people on Twitter, Facebook and other social media were all trying to do the same thing. Attract ‘customers’.
But these other business entrepreneurs, although in my ‘overall niche were not going to be interested in my products.
In reality, these ‘entrepreneur contacts’ were not in my niche market. They were my competition, not my ‘specific, targeted audience.’ Hmmmm, tricky uh?
Below are some suggestions from an article called Target the Right Niche in Entrepreneur.com with some very important specifics to identifying and narrowing down your niche.
1. Its members have similar needs unique to the market segment. You should be able to pinpoint common-denominator needs that differ from the needs of the rest of the market. Of course, these needs must also relate to your offering and industry. For example, attorneys may have unique needs when it comes to document copying, so if you provide copying services, it makes sense to target attorneys specifically. Geography also plays a role. Market segments can vary dramatically among local, national and global markets, even within the same industry.
2. Your product or service meets these needs better than competing products. Your offering must be more attractive to your niche customers than other products in your industry. Offer compelling reasons to buy your brand that speak directly to special needs. These reasons don’t need to be intrinsic to your product’s features, they can also extend to aspects of your business like customer service.
3. You can market to these prospects economically. To attain a decent ROI on a modest budget, it must be relatively easy to identify and reach your niche audience. Direct mail is a common method of advertising, but your mailing list can make or break you. Find ways to first narrow your list to qualified prospects, then write your message directly to them.
4. The group is large enough to generate the amount of revenue you need to remain profitable. Remember, your niche must provide you enough customers to stay in the black. If it doesn’t make sense fiscally, it doesn’t make sense period.
5. Members aren’t currently being targeted, or they aren’t being targeted as well as you can target them. The best niche is one in which the competition is ineffectual or nonexistent. Find the overlooked niche, not the obvious one.
How Do You Find Your Niche Market?
So here’s what you can do to identify and find your niche market.
- Take a good look at your ‘product ‘ or ‘service’. What do you do and what are you offering people? What people? Think clearly what group you want to talk to.
- Define clearly what your niche market is? For instance for health and wellness, narrow it down to healthy coffee or weight loss or Entrepreneur Coach, Life Coach, Website Building, etc.
- Identify the specific audience you want to hit. For instance, people who want to lose weight but are diabetic. Not just people who want weight loss.
- Identify the target products you want to market within your niche. My company has many great products, but I had to narrow it down and focus on one or two specifics.
- Look at #5 above! That’s my favorite – find what’s overlooked and work with it!
So what has been your experience in finding your niche? Please share how you identified your niche. Was it easy or hard? What tips do you have to narrow down your niche? I’m always interested in hearing other’s experiences.