The Golden Rules of Niche Marketing
Companies trying to increase revenues could do to learn the rules of niche marketing, since this holds the key to getting and retaining customers as well as the ability to charge higher prices. What makes niche marketing even more attractive to companies is that it is extremely cost effective, since the marketing effort can be directed towards a very narrow segment instead of to the entire population, most of who may not be interested in the product.
The first rule of niche marketing is to find a niche that you believe will be profitable. A good marketing niche is one that has customers who are easy to access, and which is growing reliably fast. It is also important that the marketing niche you are exploring should not be already owned or serviced by an established vendor. You have to keep your eyes and ears open in order to find a niche that is ready to be entered. Different demographics or lifestyles form the perfect opportunities for a company or person to discover a marketing niche.
The next rule is to tailor-make your product to meet the unique needs of that particular niche. Your product or service might need slight modifications that will make it exclusively qualified to meet that specific need. Put in the effort to make this modification, and you are well set on your way to capturing this niche.
Communication is a very important aspect of niche marketing, because if you do not reach out to your target markets with the correct message that you have a solution to their unique problems your product will not move. You will have to pay a lot of attention to how you get through to your customer because the same message will have a different meaning to different segments of the entire market.
The last and final rule of successful niche marketing is to test-market your product or service before you finally launch it. The risk of marketing to a niche could be that the market is not developed enough to support any particular niche product, and you have to investigate whether other companies have tried to do what you are doing and have given up after making no headway in that niche .
Niche marketing is particularly effective in internet marketing. This enables internet marketers to devise high impact promotions in order to drive higher revenues, while keeping ad spend reasonably low. The market that is targeted tend to be very loyal, thereby giving the marketer a steady income stream. It is possible to earn substantial revenues by serving more than one niche market at the same time.