A market niche is a slice of the segment you serve. Going a little deeper, a market niche is a business opportunity within a specific market segment. The biggest benefit of a niche and sub-niche in a market segment is the level of assertiveness achieved between your brand and your target audience.
In this article we will cover the main concepts on the subject. These are:
- What is a Market Niche?
- Types of Market Niche
- How to Identify a Market Niche?
- How to Do Niche Market Research?
1 – What is a Market Niche?
Market niches are groups of people with needs, desires and problems within another group of people with similar interests.
Treat a niche market as a smaller market within a larger one , where both are social proof and laziness to think to the same market segment.
Let’s imagine that you sell supplements to people who go to the gym. This is your entire segment. Let’s imagine that you want to narrow it down a bit and you’re going to sell your product only to people who do CrossFit.
So you sell supplements to CrossFit people in gyms. You’ve just reduced the market share you serve, i.e. you’ve just niched your target audience.
Now you want to go further and you want to sell supplements only to those who go to college to practice CrossFit for competitions. You have narrowed your target audience even further.
You have niched your audience into 3 levels, making your product specific only to those who go to the gym to do CrossFit to compete.
What we have just illustrated is the definition of the concept of a niche market. This is when we want to be specific about the audience or people we want to sell something to.
What is niche marketing?
Niche marketing is a type of marketing campaign that focuses solely on a specific group of people. In this type of marketing campaign, the how to choose a good cash register system for your store is on reaching people who have very specific needs.
For example, in the case of the health segment and weight loss niche, we can consider a niche marketing action for women who seek to lose weight with healthy diets 6 months after giving birth.
Niche marketing will have all communication and distribution directed only to this target audience. This will make delivery smaller but with higher conversion rates.
What is the difference between a market segment and a market niche?
The segment is a large audience with similar needs, while the niche is just a slice of that segment.
Let’s take another example, the b2b reviews is civil construction, the market niche is the construction of 2-bedroom properties that fall under the Minha Casa Minha Vida program in downtown Curitiba.
The target audience with a purchasing profile for this type of property is just a fraction of the construction segment.
The Benefits of Niche Markets
When you define your niche market, it becomes easier for you to impact the right people. After all, there are fewer people. The more niche your audience, the fewer people you reach. It’s that simple.
In addition to being easier to impact the right people, you also need to understand your customer’s pain points. Knowing what their difficulties, problems and what they really need will consequently make your offer much more assertive and your sales conversion will be much higher.
The third major benefit is the reduction in media investment costs. When you know your audience, you know where they are. The focus on the right communication channels will be clearer and engagement with your audience will be easier.