Identify Your Ideal Market Niche

2 March 2017 - 4 minutes read

Our last article focuses on how and why you may want to consider ‘niche’ marketing.

Niche marketing is a concentrated form of marketing that involves targeting a very specific, well defined segment of the market. Examples of organisations offering niche market services include Community Transport – provide local transport for older people and Meals on Wheels – provide meals to individuals who are unable to shop for, or prepare their own meals.

The main benefits of niche marketing are that it allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and generate business.

However, in order to create a niche you have to understand what your organisation brings to the table for your target audience. Your services need to mean something and be significant to your niche market.

Process for Determining Your Niche Market

 

Know Your Services

Write a list of your services and beside each one list the features, benefits and value of each. Then consider who has the greatest need for each service.

Know Your Organisation

What are your strengths and weaknesses as an organisation? What is your competitive advantage – what are you great at or what do you offer that others don’t?  What are your limitations in your offer and how can you overcome these to remain relevant to your customer base?

Analyse Your Competition

Who are your competitors targeting? Who are their current customers? What do you do or have to offer that your competitors don’t? How can you improve on what they are currently doing? By considering this, you may find a niche market that they are overlooking.

Understand Your Current Customers

Who are your current customers and why do they buy from you? Which ones bring in the most business? Can other people like them also benefit from your service?

Identify Your Potential Customers

Work out who has a need for your services and who is most likely to buy them, then make a detailed list of potential new customers, considering their age, gender, culture, social status, interests, hobbies, etc. Determine how your services will fit into their lifestyle and how and when will they use your services. By finding out these details you’ll know how to win them over and ensure that they become loyal clients.

Know How Your Customers Source Information & Make Decisions

Where do your future customers turn to for information? By knowing this, you can customise your messages.

Evaluate Your Decision

Once you’ve decided on a niche market, be sure to consider these questions:

  • Are there enough people who fit my criteria?
  • Will my target customers really benefit from my services? Will they see a need?
  • Do I understand what drives my target customers to make decisions?
  • Can they afford my services? Are they willing to pay a premium for a specialist service?
  • Can I reach them with my message? Are they easily accessible?

Remember, you can have more than one niche market and that your marketing message and strategy may need to be different for each one.

Rosanna Commisso: Home Support & Partnership Coordinator – T 1300 134 332 E  rosannac@yournorthside.org.au

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