You’ve got a microbiz and all you want to do is sell as much as you can to anyone and everyone who wants to buy. What’s wrong with that and why do all the marketing gurus say it is a recipe for failure? The basic flaw is that no business, large or small can be all things to all people. Even Costco doesn’t appeal to everyone.
Niche marketing – A Definition
A niche market is a small segment of a larger market which has a need that is not being met, espcially by larger businesses in that market. Niche marketing means defining your target narrowly to fill that unmet need. Think of it as a shotgun versus a rifle, or as throwing stuff against the wall and hoping some sticks versus nailing one thing well.
Why It Matters
You can’t be all things to all people. No microbiz can do that. They just don’t have the resources to go after everyone in a broad target market, so the trick is to focus the resourses they do have narrowly to get the most bang for the buck. Microbusinesses will find it easier to become the go-to resource for a niche, to become seen by members of the niche market as the best option for meeting their need. Because niche markets are small, you can reach them, customize your message for them and customize what you offer to meet their need.
Members of niche markets tend to socialize and interact with one another. Word of mouth goes a long way. Instead of spreading your marketing and sales all over the place you can focus on a narrow slice. Of course the key is to figure out who is in the niche.
Who’s in the Niche?
A niche is however you want to define it. There aren’t any hard set rules or secret handshakes to tell who is part of a niche. One thing you can do is figure out who you want as customers, who you want to do business with, and where or how you want to do business. Find customers that have things in common, part of some common network helps.
If you are selling yourself, figure out what you are and look for a niche among like minded people. Look for places where you have credibility or expertise. Look for people who share your world and life view. Find people who are like you or whom you know and start with them. Your niche doesn’t have to be local or limited by geography. It can be anywhere as long as the members share the same attributes. Online communities can be spread all over but can be very specific niche markets you can target.
It All Sounds So Simple
It does sound simple and it is theory, but simple does not mean easy in application. First, people don’t like to be put into niches and the niches they do go into might not be obvious.Geriatric headbangers? Nude bikeriders?
You’ve identified an area with needs that are not being met by other businesses. Great! Now ask yourself this question, “Why?” Why is this niche overlooked? Maybe you are smart or lucky and found it before anyone else did. Maybe you are a member of a group with an unmet need. Or maybe the niche is not a real one, maybe no one wants the need you’ve identified. That means you’ve got to do some basic market research, ask questions, gather data.You know the drill.
You’ve also got to consider the competition. Will the big boys come after the niche you’ve found or is it not worth their while? Are there other niche players going after the same market you’ve found. Look at what people in your niche are doing now. Whatever that is, consider it your competition. Now you can focus on how to beat it. By price, by service, by something special you offer, by being the recognized leader. Niches are small and cannot tolerate much competition so act quickly and decisively to stake our your spot.
Check Back
Once you’ve found your niche, do some testing. Talk to people. Don’t just throw up a store or hang your shingle and hope you’ve struck oil with one drill hole.
Come back regularly and re-evaluate the decision you’ve made. See who your customers really are; check if they actually part of the target niche you identified. You may find that you’ve misidentified a niche, or that somehow you are drawing customers from another niche. Okay, make some changes. Adjust your message, or throw out those niches. Check if you are missing business because it is not in your niche. Look to build on new opportunities. If you’ve found multiple niches, prioritize them. Go after the best ones first.
This is an ongoing task, but it is vital to do. Focusing on your niches truly does prove for marketing that less is more for your microbusiness.
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