Are you out of work and have you heard about digital business? Making money online is possible, if you are thinking of setting up your own online business it is of vital importance that you learn to target your business to the right niche. This is the only way you will be able to target the right audience, that is, the audience that is really interested in your products or services. This way you won’t waste your time and money on people who are not interested in you.
Get ready! because if you don’t know what a niche market is, we are going to tell you about it in this post. In addition, we are going to give you some examples so that you have it very, very clear.
What is a market niche
A market niche is a small portion of a market segment in which people and/or companies that comprise it have in common a series of characteristics, needs, desires and problems.
Ideally, your product or service should meet the needs of a specific target audience for which it is intended. By targeting a more specific audience, you can save resources. To help you know who is the audience that makes up your niche market, it is best to define your “buyer persona”, i.e. your ideal customer. This is not a real person, but an idea of who you want to target. You will have to define their age, their tastes, their problems, their needs and even their economic situation.
Finding a niche market has a number of benefits or advantages:
Effective marketing plan:
By knowing your target audience you will be able to make a highly effective marketing plan with which you will gain their trust and they will believe in you.
More economic income
By targeting a less exploited market area you will be able to raise your selling prices. This way you can earn more money with fewer sales.
More strategic alliances
You will be able to easily recognize who can be a good business partner and benefit both of you.
By targeting a smaller audience you will have fewer competitors to fight with.
Niche market characteristics
For your business to work, your niche market must meet the following characteristics:
- It has to be well defined, i.e. it has to fill a specific need that the user is willing to pay for.
- It does not have to include too wide an audience.
- It must allow a fluid communication with the audience, for this you must know perfectly what you are selling.
- It does not have to be exploited, and if it is, it should be little exploited. Don’t do what everyone else is doing, be different.
- Don’t be based on temporary fads.
What is a market segment
A market segment is a group of consumers who have similar needs and situations. It differs from a niche market in that it is a broader concept of consumers while the niche is more sectorized. An example of a market segment would be one comprised of all individuals who eat bread, and a niche would be one comprised of individuals who eat only whole wheat bread.
Market segment types
Segmentation can be done in different ways:
This is based on the location of the consumer market. This takes into account the continent, nation, state, city, municipality and street without ignoring the competition. This type of segmentation is impractical for digital businesses because they have no physical boundaries.
Takes into account variables such as age, gender, nationality, profession, purchasing power, education, offspring and family members. This form of segmentation is the most widely used for advertising.
This is related to consumer behavior. The factors it takes as a reference are tastes, desires, needs, preferences, amount and timing of purchases. It is widely used in nightlife venues, cinemas, beauty salons, etc.
It takes into account all the personal characteristics of the consumer, such as his way of life, his qualities, his aptitudes, his virtues, his philosophy of life, his political status, his affinities and what satisfies him. Examples of this type of segmentation can be gluten-free products or dehydrated foods.
How to make a niche market attractive
Choose a niche market that appeals to you. Niche markets are attractive to businesses if they follow the following criteria:
They have to encompass a narrow set of individuals or organizations.
Must contain the necessary or sufficient number of consumers
It must be considered an unavoidable financial suitability
With little or no competition
Must meet the specific need of the consumers included in it
Must have performance capability
Not based on fads
Niche market examples
Here are 10 examples of niche markets are:
- Sale of solar-powered rechargeable tools, such as screwdrivers, drills, etc.
- Sale of school supplies for children from 4 to 7 years old.
- Production and sale of sweets for vegetarians.
- Financial advice for small entrepreneurs
- Medical centers for people with special needs
- Sale of personal care products made with natural ingredients
- Distribution of drinking water vending machines for large companies
- High class dog and cat daycare
- Sale of organic and biodegradable cleaning products
- Personalized care for seniors over 65 years of age
A niche market is a small group of individuals or companies that have similar characteristics but whose needs are not covered by the market. It should not be confused with groups created by market segmentation, which are larger and more difficult to identify. Targeting a business to a niche market is essential for successful sales because it allows for a more effective marketing plan, fewer competitors, greater ability to make logistical links from which to obtain greater profitability and higher sales prices.
For a market niche to be attractive, it must cover the specific need that is demanded, it must be not very broad, it must be little exploited or untapped and it must not be based on passing fads. You already know that before starting your online business you need to identify a niche market to get the results you want. If you do not target a small group of consumers, you will waste your time and money in making your products or services known to consumers who will not show the slightest interest in you.