What Is A Niche?
February 10, 2017 Niche Marketing
A niche is a focused, targetable part of the market. You are a specialist providing a product or service that focuses on specific client group’s needs, which cannot or are not addressed in such detail by mainstream providers.
However, it is important to understand that there is a difference between your niche and your target market:
Your target market is the specific group of people you work for e.g. women in the City, dog owners, creative female freelancers, ceramic collectors, brides to be, outdoor galleries.
Your niche is the service you specialise in offering to your target market. For example various design businesses can have creative freelancers as their client group: a design company can offer them web design and app development, another company can offer them branding advice or photography. It is the combination of target market and specific service that creates a niche market.
Why is it important to have a niche?
1. Don’t spread yourself too thin
Instead of the risk of spreading yourself too thin, and say that ‘everybody’ is your potential client niche marketing will help you to focus on a specific group of people, and what their specific needs and wants are.
Especially as a sole trader you won’t be able to serve everybody, so it is important to focus on what you do best and for a group of people who will buy what you create.
You will soon find out what is important to them, what magazines or blogs they read, how they talk and dress, who the main people in that network are. You can develop products or services specifically for this group, based on your increasingly thorough knowledge and understanding of what they are interested in.
2. Easier to identify and target potential clients and partners to work with
As the pool of people you are looking at is smaller, it will be easier to identify potential clients and partners to work with as you can be more targeted with your marketing efforts.
3. Easier to become an expert and well known in your niche
It will be easier for others to understand ‘what you do’ and ‘for whom’, which will make you an expert in a certain field. As this group is more targeted and smaller you will be quicker well known within this group of people. Your visibility and profile will increase within this group, and it turns out we live in ‘a small world’!
4. More and better referrals
As it is easier for other to understand what you do and for whom it becomes easier to refer more and better clients to you, as you have build up trust and got more visibility and credibility, and it is clear what you specialise in.
5. More unique = Less competition
There will be less competition, as you provide specific services or create specific products for specific people, in a specific way. The BIG advantage of that is that it can’t be easily replicated!
6. Marketing become easier
Niche marketing will really help with your marketing, positioning and branding as you will attract the ‘right people’ easier. People with similar interests behave and are attracted to similar things. And also a lot of your clients will do the hard work for you as they will refer you, and your profile and credibility is easier known within your tribe.
7. Easier to identify specific clients
You can also identify specific potential clients easier, especially if your clients are other businesses, such as galleries, retailers, or freelancers. You can identify them by name (unlike most consumers) which will make the communication from the start more personal and unique, instead of mass marketing or advertising.
8. More repeat business
As you can provide an increasingly better service or product, based on your client’s needs, the chance is that you will get more repeat business – people will come back for more, and often will start spending more with you as the relationship grows.