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Finding your niche is one of the most important things to take note of when it comes to almost anything. Before we get into how you can find your niche, let’s understand what the word ‘niche’ means.
What will be covered:
What is a Niche?
A niche is a very carefully selected market for a specific product or service. So when someone says they’re targeting a ‘niche market’, they mean that they’re focusing on a specific group of people. This group of people can be based on a few different categories.
- Geographic (Country, Place, Location, etc.)
- Demographic (Age, Gender, Race, etc.)
- Psychographics (Beliefs, attitudes, values, interests, etc.)
- Income Level (below average, average, above average, etc.)
- So many others…
There are so many different segments that the mass market can be categorized into. As you go along with this article, you will understand more.
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Niche Market vs Mass Market
The mass market is the entire population within your reach. If you’re from the US, your mass market could be the entire US or the entire world. This means that your products and services are needed and can be used by any person within the market.
A niche market is a specific group of people within the mass market. For example, if your business is about baby clothes and other necessities to take care of babies, your niche will be pregnant women and parents with babies.
Advantages Of Having A Niche
Before getting into how you can find your niche, let’s take a look at some of the benefits of targeting a niche market over targeting the entire population.
1. Less competition
Entering a niche market naturally means that you will be cutting down a majority of your competitors. Not all businesses in the market will focus on your niche. Therefore, it will be much easier to impress the target market.
2. Cost-effective
By having a niche, you’ll be focusing on a specific segment in the market. This means that your marketing costs, promotion costs, and many other expenses will be cut down by a large margin.
3. Expertise
Focusing on a specific niche allows you to show the target market that your business is probably the best place to go to get the solutions that they need for their concerns.
4. Higher profitability
When you have a niche, the target market will be aware that the products and services that you provide from your business are perfectly curated to suit their needs and preferences. Therefore, your customers will not mind paying a bit higher or a little extra for them.
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Steps To Finding Your Niche
Finding the niche for your product or service involves several steps.
1. Narrow down on your interest
Think about what your interests are and what sort of business you see yourself doing in the future. This will give you a rough understanding of the market that you are targeting and help you to narrow it down. Make sure that the interest is able to solve a problem for any specific segment of the mass market.
2. Explore potential opportunities
Do a bit of research online to find out if there’s a demand for the specific interest that you have. For example, if you’re interested in making pastel tableware, check online to see if there is a demand for these types of products right now. If there is, check if there are competitors who are currently supplying for this need. Thorough competitor analysis and research can help you to understand a lot more about the market that you’re trying to reach as well as the standard that you need to upkeep.
3. Check potential profitability
Once you’re done researching your interest and comparing it against the potential opportunities available in the market, the next step is to check the potential profitability of your business. If it costs you a lot just to manufacture your products but the market price of your product is really low, your profitability might not be as high as you think. So, you will need to check very carefully, the actual profitability against the target profit margin you have in mind.
4. Test your business idea
After completing your research, the final step is to test your idea. Create a website or a landing page where you explain your products and services thoroughly and observe the target audience’s response. This is where you truly understand if the target market thinks your product is good or not. One good method is to run pre-sales. This way, even before launch, you can check if there’s a good demand for your business and see if the product is good enough to be sold. Don’t be demotivated if it doesn’t sell. You can always make modifications and try again.
So this concludes my article on how to find your niche. Understanding all the points and following all the steps that I mentioned in this article should help you to find your niche and have a better understanding of the exact target market that you should be aiming for in your business. there are several other articles in my blog that might help you out with your business.
If you enjoyed this article, make sure you read the article on Sanuth’s website on how to select your target market. It will be incredibly helpful for you. If you wish to leave some feedback, please do so in the comments section. I would love to hear the thoughts and opinions of my readers! If you have any questions, please feel free to contact me personally via biz.smartiac@gmail.com or our social media channels – Smartiac and Smartiac Finance.
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Hey! I’m the co-founder of Smartiac – a pinterest management agency for the home furnishing industry. If you’re a furniture store owner or marketing manager looking for assistance with pinterest management, definitely get in touch with me!
