In my 10 years experience of working with clients, one thing I've noticed is; there are some business owners that have defined their niche market and have a clear picture of which it is they are marketing to and there are others that tend to waiver or be unsure.
Often business owners view a niche market as narrowing their sales or cutting into a profit margin, so they fear it. The truth is a niche market could be defined as a component that gives your business POWER. A niche market allows you to define who you are marketing to.
When you know who you are marketing to it's easy to determine where your marketing energy and dollars should be spent. Take for example a car dealership. A car dealership calls me up and tells me they want me to help them develop an Internet Marketing strategy. My first question as always is "Who are you marketing to?" They answer by telling me they want to market to anyone interested in buying a car. Now let's keep in mind that this car dealership is located in New York.
I approach the process by working with the client and explaining to them that although they market to a person in Seattle, because that "person is interested in buying a car" the chances of that person coming from Seattle to New York to purchase that car is a very unlikely. Therefore they've wasted time and money and will more than likely see no return on either. By the time our conversation is finished I've helped them see why narrowing their niche market down to be "anyone interested in buying a car within a 50 mile radius". They now have POWER. They know where to spend time and money to market and their vision is clear. They are now 10 steps ahead of the other car dealership located 20 miles away who is marketing to "anyone interested in buying a car".
There is even a greater importance in having a well-defined niche market when planning your Internet Marketing strategy to achieve Internet Success. The most common misconception about online marketing is that if you build it they will come or having an online business will make you wealthy. Truth is you have to find your niche market to get them to come and you must offer a product or service that they are demanding to reach a level of financial success via the Internet.
Defining your niche market before you embark on your Internet marketing strategy is important for the following 5 reasons.
Contributed by: Mohinder Pal Singh
Date: March 15, 2010