Niche marketing is an easy concept to understand – it just takes a bit of thinking about. To break it down into two parts, a niche is a small slice of the market at which products or services are aimed at. For example mobility scooters are aimed at older people – this is an example of a niche product, and older people are an example of a niche market. Niches don’t have to be classified by age though, they can be determined on sex, sexual orientation, geography, religion or profession. We all know what marketing is – it’s the advertising and promoting products to make people want to buy them.
So now we’re familiar with the term niche marketing we can see that it’s a process where businesses try to reach out to a specific niche to let them know they have a product or service available, which may interest them – obviously in the hope that anyone who sees this product will go out and buy it. Because niche marketing isn’t the same as mass marketing (marketing for products or services nearly everyone uses), it can be a little harder to narrow down the habits of a niche, and to effectively reach them – but it can be done.
Before a business can start advertising their goods, they need a good idea of who will buy them. There’s no point in businesses spending thousands on advertising if it’s being put in the wrong place. An example of this would be a website that sells computer games advertising in a magazine for elderly people. Clearly there’s no relation there between the product and the audience – very few elderly people are likely to own a games console, let alone want to buy games for one. Advertising in such a manner is a waste of an advertising budget, so companies make an effort to establish the habits of the niche they’re targeting their products at.
A new online retailer selling electronic goods such as headphones may want to spend their advertising budget on social media campaigns. They would be tapping straight into the demographic their product is aimed at; younger people with access to mobile devices and/or computers/laptops who want to listen to their music. An advertising budget spent on a social media campaign would likely drum up far more business than a campaign of small ads published in the local newspaper. How many young people read the local paper? Even if they do, advertising via local press isn’t the best option for online businesses as it immediately restricts the geographical area their ad campaign is seen by.
The best example of niche marketing is found in your local newsagents. Open a specialist publication and you’ll find many pages of adverts for related businesses. Fishing magazines contain a lot of ads from fishing shops – just like computer magazines will contain many adverts for computer firms.
Niche marketing is all about knowing your market and knowing their habits. You could have all the money in the world but if your niche marketing strategy is wrong your campaign could still fail completely.