A niche market is an act of differentiating your brand/market from the larger market by its own unique needs, preferences, or identity which makes it stand out from the larger market.
Why Should You Choose A Niche Market?
Once you can identify the market niche, you will have a broader scope of what you want for your business, thereby giving you an edge over your competitors. Launching your store be it online or offline in a crowded product category or market, makes you have a hard time with the already established competition. But if you choose a niche, you will be able to double down on a particular part of the market, then you would in an already crowded environment.
Deficiencies of Marketing to a Niche Market
Even though there are many benefits linked to a niche market, it also has some flaws that you need to understand before you decide on one.
A niche market can limit the number of buyers/customers you have for your product since it is targeted at a particular set of people. Some of these niches may be too small for the local population, thus you need to carry out adequate research to find out if there are enough buyers in that niche to make it viable.
What Makes a Niche Market?
A niche market can be classified by the particular needs and preferences of its constituents in the following ways:
- Demographic base – This includes gender, age, income level, and education level.
- Geographic – This the buyer’s precise location.
- Price – The price can be high, moderate, or come at a discount.
- Psychographics – includes attitudes, values, and interests.
- Level of quality –This includes premium, high, moderate, low, cheap.
How to Discover Your Niche Market in 2020
Are you an established ecommerce entrepreneur who is searching for a niche market and product to sell?. Then the first step you need to take is to establish an overview of the larger market and take it up from there. It is best to make your niche a subset of the market you are looking for, to help you define everything. Start by analyzing the following;
- The marketing strategy you would be using.
- Your product quality.
- The product features you are looking at for your market’s needs
- The price range for your products
Although there is no one-size-fits-all when it comes to the method of choosing a niche, there are still some proven methods you can use to build a list of possible niches and find product ideas.
Gone are the days when you had to live without the internet. Now the internet (Google) has made things easy for business owners who are hoping to get their business out there to the world.
With Google searches, you can brainstorm niche ideas to understand what other online retailers are offering in a product category or to a certain audience. Here, you can explore different angles and trends, until you find an underserved audience or demand loophole in the market that you can leverage on.
Use a Mind Map
There are free online tools likeText2MindMap that you can use to create a simple and effective mind map. It offers a great way to discover niches for your chosen product. The mind maps mimic the way our brains think, and they are an intuitive way of organizing your thoughts and expanding ideas. Thus, building one for your product idea can generate ideas quickly and also encourage you to explore different niche paths.
Search for Passionate Communities Online
On the internet, you will find communities based on shared interests, passions, and hobbies, which are known as niches. You can use this to your advantage by considering specific communities that you belong to or hunt for ones that you can benefit from by
- Going through the most visited Wikipedia pages under “hobbies”.
- Looking for the most active subreddits in search of passionate audiences as well as listening in on their conversations.
- Listening to community-oriented tags on Instagram and Twitter.
Use Google Suggestions
Google suggestions are the most searched for related queries, which can be very beneficial to any business owner.
Since Google only shows you a few suggestions, you can also use tools like Keyword Tool or Answer the Public to gather and organize all of Google’s suggested searches.
Niche market helps you better focus on your target audience and give your product the proper awareness it needs to get to the next level.