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  Understanding the Effects of Niche Marketing  
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  To Niche Market or not to Niche Market  
Did you know that 20 per cent of buyers consume 80 per cent of product volume?
So, to a business owner, what does this mean?

Basically it means that a small group of consumers (20 per cent) are buying most of the product (80 per cent). So, if you focus on just this 20 per cent, then you’ll sell much more product with much less effort, right?

Exactly! And this is what niche marketing is all about.

Mainstream marketing targets a large group of people with no particular focus in mind. It tends to use generic advertisements that may, or may not, affect everyone. In most cases, these advertisements pass by people like cars on a highway, no one giving much thought to the message or the product being advertised.

Niche marketing however, focuses on a certain group of people and directs their product and message towards them. Although the target audience is smaller than in mainstream marketing, the message actually gets through to many more customers.

So why niche marketing? What’s so great about targeting a certain group?

First off, niche marketing is cost efficient. Because you are focusing your niche marketing strategy on your ‘heavy users’, those you use your product the most, you are eliminating the extra costs involved in advertising to a large segment.

Instead of spending high costs on advertising during primetime television when you receive the largest market segment or using expensive billboards in the heart of the city, you can narrow your niche marketing strategies to smaller (and cheaper) areas where your target market will most likely see it.

For example, you can advertise online if your target audience are Internet-savvy, or at the local gym if your clients are fitness fiends.

Secondly, niche marketing is more personal. Customers grow to respect your product and the service you provide because it is uniquely catered to their needs. It is specific and individual and this is something all consumers want. This develops into customer loyalty, which means your business will continue to grow.

Wouldn’t you rather purchase a product that you know is good quality rather than picking up the generic cost-effective brand? Saving money isn’t everything and consumers are well aware of that.

And finally, niche marketing is an effective way to expand your clientele and your business. Because you are targeting, communicating with, selling and obtaining feedback from the heaviest users of your product, you will be able to change and develop based on their needs.

Niche marketing connects with the customers. And, in the end, isn’t that what your business is all about?

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