To get a lot of profit from the business, a marketer has a variety of ways that can be applied, one way is to determine a niche market.
Basically, this strategy is carried out by marketers because currently there are a lot of industries or businesses that have opened their own businesses.
As a result, the competition is getting tighter so that the niche market is an important option to do. So, what is the meaning of this marketing strategy? Don't worry, here Glints will explain it to you.
What is a Niche Market?
Before going any further, let's first discuss the meaning. Reporting from The Balance SMB, a niche market is part of an industry with a more specific target market and consumers.
From the target market, a businessman or marketer sells the products or services offered. This method is very important to consider when you want to build a business in today's era, where competition is getting tougher and wider.
Determining a more specific target market can help you achieve greater profits than having to plunge into a broad target market. Because, in the end, a marketer cannot sell his product or service to everyone.
A simple example of a niche market is in the clothing industry. In that industry, you find clothes for children as well as clothes for adults. From there, it was clear that there were targets for clothes for children and for adults.
The two markets have different specifications, ranging from price, gender, age, and others.
Niche Market Benefits
1. Business competition is not too tight
When you have determined a niche market, it is certain that competition will also decrease. Because, not many choose the target market as you have determined.
However, you must quickly realize that this will not last long. Over time, there will always be businessmen or marketers who will also jump into the target market that you have set.
2. Focus more on business
- Another benefit of determining a niche market is that you can focus more on your business.
- The reason is, the target market and consumers that you will face are clear.
- That way, all you have to do is redevelop your products and meet consumer needs to the fullest.
3. Easily recognized by people
Businesses that are engaged in a certain niche market will be more easily recognized by many people.
Why is that? Because the number of your competitors is very small. It is different if the number of competitors is a lot.
Under these circumstances, there is a possibility that people will recognize your product easily and they will tell the people around them.
Indirectly, your business name will spread widely through recommendations made sincerely by your customers.
How to Determine a Niche Market
Now, after knowing the meaning and benefits, now is the time for us to move on to the next discussion, namely how to determine a niche market.
1. Find out your interests
Reporting from Entrepreneur, a businessman will not be enthusiastic about running his business if he does something he doesn't like. Maybe, there are some of you who already know your interest in turning it into a business field.
For example, you are interested in the field of fashion. So, it never hurts to try the clothing business and find the right niche market.
2. Identify customer needs
After knowing your interest in business, the next step to determine a niche market is to know the needs and problems of customers.
How to do it? You can do market research first, then identify any problems experienced by customers. From there, you can turn your product or service into a solution that can answer the concerns of customers.
3. Competition research
You may already know the right product and target market. However, don't forget to research the competition you'll be facing.
The method is quite simple. You just need to search for keywords from your product or service through several tools, such as Google Trends, Google Keyword
Find roughly how big the opportunity to get into it. Are there other competitors in the same target market as you? If so, find out its features as well as weaknesses. From there, you can develop your product well.
4. Market test
Finally, don't forget to do a market test related to the niche market that you have specified. Will it develop or not at all?
If not, don't just give up. There are still business ideas that you can apply with the right niche market.
Niche Market Example
With a variety of hobbies, habits, preferences, and things that people like, the niche market is a promising area.
For example, if you are someone who likes animals, then targeting pet owners as your niche market can be a good idea. Some of the products that you can offer to pet owners, as reported by Shopify, are as follows.
- pet camera to view and interact with pets when not at home
- GPS equipped pet collar
- organic pet food and treats
- cute accessories or clothes for pets
Another example, if you like playing video games and target gamers as your niche market, you can offer the following products.
- Ergonomic products that help gamers to play for a long time (chairs, joysticks, anti blue light glasses)
- clothes designed with video game references
- accessories for gamers who play on smartphones
Difference between Niche Market and Mass Market
Well, the opposite of the niche market itself is the mass market. By definition, the mass market is a market with a very broad target.
Thus, a company will try to meet the needs and wants of consumers who are more general. Then, in addition to definitions, here are some of them, quoted from Geeks for Geeks.
Niche market
- specific target market, so it requires marketers to consider the background of consumers
- consumers who are homogeneous and have the intention to buy the product in the long term
- do intensive marketing through the internet and magazines
- using relatively cheaper mediums such as websites, content marketing, and email to advertise products
- not too much product variety
- low competition because there are not too many competitors
Mass market
- a very broad target market, so looking at the background of consumers is not too important
- heterogeneous and constantly changing consumers
- doing extensive marketing through mass media such as television
- using relatively more expensive mediums such as advertisements on television and media
- wide variety of products
- high competition because of the many competitors in society
Thus a brief explanation of the niche market and how to determine it. In essence, a niche market is a specific target market that is useful in running a business.
Interested in creating a target market from now on? You can take marketing classes from Glints ExpertClass right now. There, you can take online classes under the direct guidance of an expert.
Through Glints ExpertClass, you can immediately ask questions related to your problems related to marketing.
