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What is a Niche Market and how to Find a profitable niche market in 2021?

A niche market is a segment of a larger market with its own preferences. Learn about how what a niche market is,...

Avatar Written by Isaac ss · 3 min read >

Standing out from other businesses in your niche nowadays can seem impossible, especially when your industry is saturated with other developed brands and competitors with big budgets.

The good news is, it’s not impossible!

You can build authority for your business through niche marketing and get differentiated by focusing on an untouched low, competitive niche market with a medium brand.

This article will cover what a niche market is, niche market examples, how to find your niche market, and the benefits of a niche market for your business.

Niche Marketing Definition

By now, you might be asking, “What a niche market is?

A niche market is a marketing strategy that focuses on a specific target market. Rather than creating a marketing strategy that focuses on a big audience in an industry, niche marketing focuses mainly on a specific audience where a business concentrates all its marketing efforts.

A niche market is usually based on 6 groups, namely:

  • Demographics
  • Geographics
  • Behavior
  • Occasion
  • Need
  • Price

Niche market Examples

One of the best niche marketing examples is the best eCommerce company, amazon. When Jeff Bezos, the Amazon CEO, started amazon 25 years ago, it was an online bookstore. 

Bezos identified an unserved market in the industry to sell everything online, which has been one of the most successful companies updates. Selling from tangible products or web services for startups.

Other niche market examples include:

  1. Gamers
  2. Travelers
  3. Pet owners
  4. Football fans
  5. Local customers

How do you find a niche market for your business that is profitable?

Now that you know what a niche market is and have seen some niche marketing examples let’s look at how to find a niche market for your business

1. Know your interests and passions

Start by knowing your passions and interests.

Are you passionate about gaming, fashion, fitness, or travel? Each of these passions has potential products you can sell in any industry.

Your passion narrows down your choice to industry, giving you an idea of a specific product in that industry. Here are some ideas of top trending products you might find inspiration from.

Once you have come up with an industry and product, you need to know a specific product that solves a problem.

It’s crucial to choose a niche you’re passionate about because this will motivate you to spend more time and energy working to grow your business.

2. Do market research

Once you have decided on your niche market and a product, it’s time to conduct market research to know if there is any interest in that particular product to support a business.

market research | niche market

Conducting market research can be through several ways for free:

  • Social media
  • Forums
  • Google
  • Surveys

If you still think your product is a good fit after doing some search for it.

3. Identify a problem your product needs to solve

For a business to make a profit, it needs to have customers. But customers are usually people with a pressing problem that needs solutions that convenient to make their lives easier.

To launch a profitable business in your niche, you need to find these problems that your ideal customers are having and determine if your product can help solve them.

Here are a few tips to help you identify problems in your niche market:

  • Appeal to forums: Join forum discussions on platforms like Quora to see questions that people ask relating to your niche market.
  • Take an online survey: Create an online survey on social media channels like Facebook to ask people to give you their opinion about your product. Make sure to listen to everyone, whether they give you negative or positive feedback.
  • Do keyword research: Use free keyword research tools like uber suggest, Google keyword planner to learn search terms related to your niche market.

4. Identify your ideal customer

Your business success mainly depends on your ability to define and determine an audience with customers most likely to purchase your niche products or services.

Identify your ideal customer | niche marketing

Source: audience Ops

Yet most small business owners fail to identify their business prospects, customers, and marketing to everyone, which wastes much time and money.

Tips to help you identify your customer and focus all your marketing efforts on them effectively.

  • Location: Determine where your ideal customer is likely to buy your product or service. Is your ideal customer buying your product from home or at work? Are they on holiday or traveling?
  • What benefits your ideal customer is seeking from buying your product: what pressing need does your product solve to satisfy your ideal customer so that they buy from you over and over again.
  • View your product or service from a customer perspective: Know what your product solves and how it improves your life.
  • Create a customer personal: Gather all the data you get about your ideal customer to help you get a good description of whom to target in marketing, such as age, income, education, and work.
  • What is your ideal customer seeking to buy? This is a combination of all the benefits that a product or service offers to solve a pressing need and satisfy a customer.

5. Determine revenue potential

Today it is easier to launch a business than ever before as technology has evolved so fast over the years. But this has brought immense competition. 

Let’s use this competition to your advantage to help determine how much money your niche product can generate. Start the search at a great marketplace like share a sale, ClickBank, or commission junction.

Browser all products in your niche and see how much other businesses are selling their products. Then use this data to set your product or service prices.

Calculate the production cost and compare it with the prices of businesses in your niche to determine your profit margin.

Benefits of Niche marketing

  1. Low competition niches: Since your niche is narrowed down to target a particular audience, the competition on that level is usually hello.
  2. Limited resources: Since your audience is usually targeted and small, it’s cheaper to manage your marketing resources and get a high return on your investment.
  3. Business loyalty: Niche marketing is all about catering to the best interest of your customers, it’s easier to build a base of hardcore customers.
  4. Better customer relations.
  5. More visibility.

Conclusion

Now that you know what a niche market is and how to find a profitable niche, use the knowledge to build a niche market business and make money from your niche die-hard customers.

Suggested:

How to Become a Respected Expert in Your Niche?

How to Find Content Inspiration for Niche Industry Writing?

Written by Isaac ss
Isaac writes about how to start an online business at isaacmarketinghelp.com where he believes every business has the potential to succeed with online marketing
     
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