The concept of niche marketing is not hard to understand, but the implementation of it can hit some roadblocks. Just because the idea is a simple one doesn’t mean that you can go at it willy-nilly and have it work for you. Keep a few things in mind when that idea of a lifetime pops into your head.
Take the time to do your homework
An idea is not ready to be road tested until you have the data to back up that the idea is sound. Your homework assignment is to determine your target market. You may have a great notion to sell small cup-sized blenders but who will buy them? Ask some questions; set up focus groups; post surveys on your website. A housewife with three kids will need something bigger than your blender. Travelers could benefit but you won’t know for sure until you do a bit of research.
Conduct some test marketing
If you already have a website and products that you sell, offer this new product in limited release and see who buys it. Ask for feedback from the customer concerning what they liked and didn’t like about the item. This is acceptable as a way to further draw out that niche market.
Look for niche markets within existing markets
Actually this is a great place to start. You won’t have to reinvent the wheel, so to speak. If a bigger company is catering to mountain climbers of all types, there might be a market in your area for the recreational climber or young adults just getting into the climbing sport. Larger markets can mask opportunities for specialization into smaller areas of a business.
Use your own experiences as a guide for developing niche market ideas
You are your best resource for new markets. Are you a single mom, married, divorced, working two jobs, have small children, teenage children? Anything that you see a need for due to a measurable trait can be used to target the sales of a product or service.
Create a website
You will need a place to conduct your research and sell your products. Most websites can be set up to track several important data points to help you see if you are on the right track with your niche idea. The Internet is a great tool within itself. The cost of setting up a website is minimal so your overhead is not as high as someone who sets up a brick and mortar business to showcase their niche market.
Resist putting the cart before the horse
Completely understand your target market before investing time or money into a product. Your idea could be a good one but not right for your area. Your idea must stand up against the changes in the market, fads and trends, and people’s changing demographics. The need of the product is based on certain traits but must be adaptable to survive unexpected changes.
If you sit on your idea for too long, someone else will be reaping the rewards
Some ideas are timely. You get that feeling and are meant to move on it quickly. Putting it off could mean someone else who decided to be the early bird will exploit the niche and make tremendous profits. You want to get there first not second. New markets are emerging every day.
Don’t limit yourself to the cyber marketplace
Some niches have international appeal as well as being useful locally. You can sell good ad copy to small businesses in your town as well as globally on the Internet. A niche is based on certain traits that lead to spending habits you can profit from. To that end, advertising on and offline can increase your sales.