What is a Market Niche?Ever hear the expression, jack of all trades, master of none? It basically implies that a generalist can do everything modestly, while a pro man does one thing incredibly well. Similar remains constant when you're selling on the web.
A niche market is simply a business-oriented towards a highly segmented market group. Sticking to your niche market and positioning your business for your targeted audience not only stands out from the rest of the competition but also gives more focused business.
Sculpturing your niche will help your potential customers to understand your business, products, and services more easily.
Most Common Ways to Define a NicheThere are numerous ways to describe a niche; here are some good examples to define a niche:
DemographicsDemographics tell the business owners about the characteristics of human beings to identify consumer markets.
You must consider these demographic categories to target the right audience:
• Marital Status
• Living Status
• Level of Education
Considering these demographic characteristics will help you to understand that who is your actual buyer? What is his/her status? And all and all.
PriceThis niche category will show the users’ buying capacity; how expensive things can he purchase? Is your product very expensive to your targeted audience? Can he/she afford your services? By figuring out these questions will help the business owners to make those products which are affordable for their potential customers.
GeographicGeographic means where your potential customers or actual clients are residing; this part tells the city, state, country, and the continent of your customers.
PyschographicsPsychographic segmentation helps the businesses to split the market based upon customer personality values, interests, traits, & lifestyles.
BehavioralWe can define our niche by behavioral segmentation. Demographic segmentation tells us who a user is, but behavioral segmentation tells us how your user acts. Spending and Purchasing habits and brand interactions are examples of behavioral market segmentation.
Some Other Points To Be FocusedBut there is something more important that you should know about niches. The fact is: a niche is a commercial idea.
Read it again and think about it.
When you focus on a niche, what you are really doing is focusing on:
1. The public or the target of the market that you want to attend.
2. The main mission and the unique sale proposal of your company.
3. The mission and vision of your company.
4. Market realities, which drive every aspect of how you structure your business, how you advertise and promote your business and how you run your business to achieve long-term growth.
Reality of MarketingTo find a niche and create a company based on that niche, you have to look at the reality of Marketing in the face. That is the difference between having a concise business plan and not having any plans. One maximizes your chances of success; instead, the other is the right path to failure.
So when reading this and start thinking about niches and companies - niche, keep this data in mind. Niches are not recently discovered magical entities.
They are simply markets within markets. Markets that are eager to buy.
Now ... there are many people who do not get the correct identification of their niche in the market.