What Is Niche Marketing? [Detailed Guide]

So, you're looking to make money online and are wondering what is niche marketing? Working in a niche market can be very rewarding if you are offering the right product or service to the right audience. However, many people often get confused by the word ‘niche’, and it seems like technical jargon to them. Well, that is because niche marketing is a technical subject and one needs to know the correct niche market meaning and also understand what is a niche marketing strategy before they go ahead and start looking for a niche market.

Luckily, this guide is all about niche marketing where you will find out the true niche market meaning, learn what a niche marketing strategy is, see some niche marketing examples, and understand the niche marketing advantages and disadvantages and more. So with that said, let’s dive into the wealth of knowledge below:

Understanding Niche Market Meaning and Niche Marketing

When it comes to an understanding of what niche marketing is, you need to first know niche market meaning to be able to properly grasp the idea of niche marketing. So with that said, let’s see what the proper niche market meaning is:

What is a Niche Market?

The meaning of the word ‘niche’ is a small portion of something, and the meaning of ‘market’ is a place where commercial dealings are conducted. So with the translations of both words in mind, a proper niche market meaning is ‘a small portion or a subset of a market where typically a specific type of products is focused.

For instance, in the market of electronic products if someone is only focusing on ‘solar-powered electronics’, then it is the niche market of that big market of electronic items.

What is Niche Marketing?

Now picking up from the meaning of niche market, the concept of niche marketing is to advertise and promote that ‘specific’ niche market product to a ‘specific’ group of people instead of targeting everyone. This means that the niche marketing strategy focuses on targeting exclusively one group of people who would get the most benefit out of that product and will be super interested in purchasing it.

For instance, taking the same example of solar-powered products, virtually everyone loves electronic, and that means everyone can get benefit from these products. But, because we are doing niche marketing, we will target a specific group who would be super interested in the product like people who are concerned about the environment and want to get energy through a source that’s not harmful to it.

Why Niche Marketing?

Now that you know the niche market meaning and what niche marketing strategy is, you must be wondering why businesses do it. Well, that is because it allows brands to distinguish themselves and appear as a distinctive authority in a unique set of customers and deeply resonate with them.

In simple words, instead of blending in with many other similar brands that offer the same or similar products, brands can leverage niche marketing strategy to stand out from the crowd. There are various factors that can help a business stand apart through the use of niche marketing strategy and some of them are:

  • Geographic region: Targeting people of a specific geographic region only like selling solar panels in a region where there are frequent power outages.
  • Lifestyle: Targeting people of a specific lifestyle like selling solar powered power banks to backpackers.
  • Occasion: Targeting environmentalists to get solar-powered products to save the environment on Environment Day on 5th June.
  • Profession: People who perform technical jobs in dark areas like in mines can be targeted to purchase solar powered headlamps.
  • Feature Addition: Adding an innovative feature in the product to differentiate it from the competitors and also target a specific group of people who would find that feature useful.

These are a few factors that come under a niche marketing strategy and can help businesses appear more valuable, reach their maximum growth potential and build strong and long-lasting relationships with their ideal customer base.

3 Popular Niche Marketing Examples

Lefty’s in San Francisco:

Located in San Francisco, Lefty’s is a retail store that sells kitchen goods, gardening tools, and school supplies. It seems pretty common and generic, right? Wrong! They are different because they tapped into the niche market of left-handed people.

As the name suggests, all of their products are for left-handed people making it easier for them to perform day to day tasks. According to Fact Retriever; only 10% of the population is left-handed, but for a single business to target that small niche market, it is A LOT!

They heavily invested in PPC advertising and as a result, whenever someone searches for a tool for left-handed people like ‘left-handed scissors,’ Lefty’s advertisement comes up, and that’s how by just targeting a small niche market, they are able to not only solve a big problem but they are also making good money.

Bonobos:

There is a common problem faced by men, and that is not being able to get the right pants from stores where they usually don’t find the right size. Therefore, Bonobos targeted this niche market of men who have this problem and launched pants with special waists that conform to the body of the wearer.

And just because of that, they earned a whopping $1 million in the revenue in just six months since their launch. (Source: Referral Candy) Bonobos use a combination of social media and blogging to interact with its customers and drive more sales.

Whole Foods:

Now owned by the e-commerce behemoth, Amazon, Whole Foods also targeted a niche market, and as a result, it was bought by Amazon for a staggering $13 billion on 28th August 2017 (Source: Biz Journals). The niche marketing strategy of Whole Foods was initially based on targeting people who preferred healthy organic food.

Besides providing all-organic food, Whole Foods also educates people through their blog with mouthwatering recipes of cooking healthy food and different cooking techniques.

Niche Marketing Advantages and Disadvantages

Advantages of Niche Marketing:

  • Lower Investment: Due to the fact that niche markets consist of a small customer base, businesses implementing a niche marketing strategy have to spend less on the production of goods.
  • Lower Risk: Because the audience is very small, marketing is highly targeted, and the customers are usually super interested in getting what you are selling if you are targeting the right audience which mitigates the risk of failing.
  • Profits Are Higher: Since you are targeting a specific group of people, you can do deep research on their background, what they want and how you can solve their problem. This means you have the exact idea of which product or service to come up with that will solve their problem. And for that, you can obviously charge higher.
  • Brand Loyalty: You are solving a problem of people that either nobody else is solving or it is not properly being solved by existing brands. So that way, your customers will not only be thankful to you but they will also prefer to stick with you and may even recommend your brand to their friends and family.
  • Goodwill Creation: Remember, exclusivity creates value and that builds up goodwill. Take Rolex and Rolls Royce for example, their audience is very small but because not many people can get access to their products, their goodwill is touching the sky.
  • Less Competition: Niche markets are based on a very small audience, and niche marketing is done on a very specific segment of the market where there are little to no competitors.

Drawbacks of Niche Marketing:

  • Less Growth: Because you are just targeting a small problem of a small audience, you may not see much growth if you only rely on a niche marketing strategy. However, if you enter in similar niches as well like Bonobos where they started providing shoes, shirts, and suits as well, you can see massive growth.
  • Getting Big Competitors: Once your niche market becomes public, other bigger brands may also enter this niche, and that can make it difficult for you to compete. But you can always go public, seek investment and compete with more prominent brands if you are providing massive value to your customers.
  • Uncertainty: The niche market you are trying to enter may not have any statistical data from other businesses to help you understand the profit and growth potential of that market.

Blogging And Niche Marketing

From a perspective of blogging, niche marketing is the process of selecting a very small market segment with a small audience and then offer value to those people. This means that instead of going for a big niche like heart-problems, you can target people with blood pressure issues and just create content offering tips and solutions to such people for maintaining healthy blood pressure.

Granted, your audience will be small as a whole but due to low competition, all or most of the people in that niche will be following your blog, and you will have a significant number of visitors coming to your website on a daily basis. You can then leverage that audience to earn a handsome amount of money.

You can engage in affiliate marketing and sell products related to solving blood pressure related problems and earn a decent commission, and you can also put advertisements on your website.

Furthermore, you can also launch your own fully licensed, approved and certified product (if certification is necessary) to benefit your audience and bank a massive amount of money.

Conclusion:

Now that you know niche market meaning and what is a niche marketing strategy, you will be able to find a perfect niche for your blog pretty quickly. We also have a guide on finding your niche market so make sure to check it out as well.

Lastly, if you don’t know how to start a blog, you can refer to our guide on starting a blog for beginners. And if you want any kind of help with blogging, you can join Wealthy Affiliate to get direct answers to your questions from industry-leading bloggers.

Are you starting a blog and have heard about niche marketing? Don't know what niche marketing is? Check out our comprehensive guide today! #affiliatemarketing #business #blogger #success

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