At first glance niche marketing might not seem very smart. After all, don’t we want the largest possible target market for out products and services? Wouldn’t we have a better chance of making sales if we had a broad demographic? The answer to both of these questions, especially if your business is a small one, is “Probably not.”
There are plenty of big companies that do very well by catering to a large target market. They offer a little bit of everything, and they promote it to people from all walks of life. But these huge corporations have probably been in the game for a long time, and they have seemingly boundless marketing budgets. For those who are just getting in to the game, it is usually better to find a good niche.
It’s a lot easier to make an impact in a small niche than a broadly defined market. Narrowing your focus instantly makes you look more knowledgeable in your field, and it affords you the opportunity to actually be more knowledgeable. Instead of trying to be all things to all people, you can really learn a lot about your specific market. You won’t win over those who are not looking for exactly what you have to offer, but you will become a very attractive option for those who are.
When you are doing your marketing online, having a niche is especially important. When people look for information online, they usually use specific search terms instead of vague ones. If you have a website that is about precisely what they’re looking for, you stand a good chance of getting their traffic. And if your website does its job, that traffic will translate into sales.
Both online and off, niche businesses lend themselves to customer loyalty. When your customers find what they need from you and have a good experience in the process, they will be very likely to come back in the future. They may also recommend you to other they know who might be interested in your products or services.
So while focusing on a niche does reduce the size of your target market, that’s not a bad thing. It makes it easier for you to speak directly to your market through your marketing efforts, and it increases the chance that they will respond. Instead of getting a chance at a small percentage of market share in a large market, you can have a good probability of getting a large chunk of a smaller market.