Any marketer worth his or her salt knows the value of niche marketing. Yet many marketers are unclear or mistaken about the best way to identify them.
But here’s the rub: You don’t identify a niche market. You create one.
“Many people talk about ‘finding’ a niche as if it were something under a rock or at the end of the rainbow, ready-made. That’s nonsense,” contends Lynda Falkenstein, author of “Nichecraft: Using Your Specialness to Focus Your Business, Corner Your Market and Make Customers Seek You Out.” She proposes a seven-step process that will be sure to help give you the edge you need.
ZONING IN
Start by clarifying very specifically who you want to reach and what you want to sell. For example, if you are an upscale hotel in Miami, instead of targeting “wealthy visitors to Miami,” which is too broad, think about honing in on “singles making more than $100K who like art.” This will be more effective in attracting people who come to Miami for Art Basel.
KNOW YOUR CUSTOMERS
Understanding who your niche customer is, what they like and what their challenges are is key to success. For example, customers seeking a high-end hotel in Miami will be status-conscious. Effective marketing should focus on the hotel as being the “it place” to be and be seen.
RELY ON DATA NOT GUT
Marketers who rush an idea to market often make the mistake of not cleaning data of duplicates and outdated records. They then end up accidentally sending two different promotions to one person. The other mistake is not relying on data to create a niche market. Marketers who rely solely on their instincts are asking for trouble. Data will help you better target your customer’s needs.
TEST AND VERIFY
This step goes without saying, since we are all swimming in data. You must match your product against the customer’s needs and then test any promotion to determine its effectiveness. Analyze the results and adjust accordingly. Be flexible and willing to swim with the current.
Niche marketing is all about being a big fish in a little pond. Be sure to dig deep and know all your fish so you can maximize profits.
