What is niche marketing? The marketer’s dictionary provides an exhaustive answer: niche marketing — marketing in a market economy; marketing in a narrow segment of the market in which a company works with profit, without competing with other market participants. Thus, good marketing is not to be better, but to be first. What are the criteria for an ideal marketing niche?
To answer the question of how chosen a niche seems to be ideal is to answer in the affirmative a fairly small number of questions. If you answer yes in the affirmative, then you have the perfect marketing niche.
Do you all understand?
The question directly concerns your level of competence, understanding of the laws, rules of the chosen market niche, about your experience, your knowledge. For example, if you have been fond of motorcycles, computers, marketing or parachuting all your conscious life, then it is clear that your competence in this field is significant, in other words, you are "in the subject." If you are "not in the subject", then the analysis of the market, its prospects, the inventing of USP and so on - all this "from the evil one." While you are inventing something for a niche, real niche specialists are already taking a niche for themselves.
Is there a demand?
Do people need your product? This is not the most important question for understanding your ideal niche. The main question is how stable and close to the rush demand in a niche? It’s very difficult to sell what people don’t know yet. It is incredibly difficult and costly to generate demand. It is worth trying to create a market for something new, only already having a fair amount of business experience and considerable investments.
In the statistics of Yandex (I constantly use this service) there are answers not only about the presence of demand, but also the structure of demand, the semantic core of demand (for example, painting the house or painting the house). If the demand for a product chosen by you as a locomotive product is not sustainable, then it is better not to make such a product a basis for niche marketing.
What is the average check?
You can sell 1000 bags of seeds for 30 rubles and earn your pennies from it, or you can sell one mining truck for a year and earn money on it. At the same time, the labor and energy-time costs and the effort expended will be approximately the same, but the income will be fundamentally different. If there is a possibility to choose from several areas, it is better to choose the one in which the margin from one purchase will be higher.
Will there be repeat sales?
If you sell a home or computer, then most likely, all your efforts will be reduced to a one-time, successful transaction. If you sell bread, then we can expect repeat sales? Tell me, in the context of the above, what is better: a service for tailoring trousers or washing men's shirts? The amount of effort spent on finding a new customer is always much greater than the effort required to make a re-sale. That is why the niche where purchases are made regularly (services, consumer goods) seems to be the best from a marketing point of view. And the most successful, in terms of marketing a niche of the so-called "subscription fee" - the regular payment for a permanently rendered service. If there is such an opportunity, then the marketer should strive to find exactly this kind of niche - think up and make the client pay for your product regularly.
How short is the transaction cycle?
I gave the above example of marketing for finding buyers for mining dump trucks. The profitability of the transaction is important, but it is worth noting that this transaction can last long enough. For perfect marketing, you should choose a niche with a short cycle of the transaction in which you will receive a profit in a time less than or equal to a month. Otherwise, you risk becoming dependent on the client, on his decision, on whether he has money.
Is a large niche?
How to make money in a small town? The question for many marketers is extremely important. I would reformulate this question in a different way, so that the answer to it would be a slightly open marketing perspective: tell me what prevents you from selling throughout the country? Is it possible to go with the goods beyond the geographical, industry niche? A good niche marketing operates with a product that is convenient and profitable to sell extraterritorially, say, on the Internet.
Is financial logistics sustainable?
It is difficult to sell air conditioners in winter, sledges in summer are just not possible. Selling Easter egg painting kits is a wonderful business, but you need to be well aware that you’ll have to work all year round, but you will only make money on these products in a narrow period of time when this product is in demand by buyers or when professional dealers are willing to pay for it. The rest of the time, at your own expense, you will be forced to clog your warehouses or second-hand dealers with your goods. Accordingly, the best niche is one with no seasonal recessions.
Is commodity logistics convenient?
A product that does not deteriorate during storage or transportation, does not take up much space or a service that does not become obsolete overnight is ideal for a niche brand.ting. If you have to “carry air” (for example, when transporting toilet paper, for example) or large transport losses are assumed, then even if such a product is highly marginal, avoid it when you become “big” and powerful and business will not concentrated and dependent on a niche - it is worth analyzing the marketing of these products, but for now ...