If you want to get the best results for your small business on the Web, you really should focus on niche marketing and become an expert in that niche. It’s very difficult to succeed with Internet marketing if you go broad and wide.
Defining niche markets for your small business is imperative to your long-term success and will help you get the results you are looking for from your Internet Marketing efforts.
How Big Is Your Pond
While it may seem counter-intuitive to shrink down the size of the market that you focus on, it’s actually gives you the possibility of becoming the big fish that everyone goes to in your small pond.
Here are some benefits of focusing in on a target market for your small business:
Defined Niche Marketing Budget
If you decide to go broad and target a large demographic you’ll soon find out that it just won’t work. The reality is, there’s no way you have enough money in your Internet Marketing budget to compete against the big boys who, have millions of dollars to spend on marketing and advertising. You will get outgunned and outspent at every turn, every single time!
The problem occurs when you spend your marketing budget on a broad group of people who really aren’t interested in your products or services. You may generate some traffic to your website but, they probably won’t convert to customers. Or, they’ll waste your time enquiring about things you really don’t have the capacity or interest to deal with. By spreading your budget too thin, your marketing efforts just won’t get you the return on investment (ROI) that you need.
Now, let’s say you decide to narrow the focus of the market that you are targeting. In this case, your niche marketing dollars are going to be directed towards potential customers who have an interest in what it is you sell. Can you see why this would have a greater impact on your results?
Becoming An Expert in A Niche
It’s easier to become an expert in a market when you narrow your focus. Choosing a specific area, or niche, gives you this opportunity. Niche markets are not just product or service related. They can be associated with a particular group of target customers who use your product or service in a special way. Or, they may exist within a certain segment of a larger industry. This is often referred to as a vertical market. Same product or service, different application.
A Multitude of Options in Niche Marketing
The niche markets that you choose can be based any number of things. You can also narrow your target market down in these ways:
- Particular interests, ages, male, female or ethnicity
Your price point
- Luxury, Higher price and higher quality, affordable and convenient, budget and economy
How you sell
- Direct sale, eCommerce, Subscription based, membership or one-time offer
Area of operation
- Locally, regionally, nationwide or worldwide
Narrowing Down Your Focus
As an example, let’s say your niche marketing focus is selling women’s clothes. It would be very difficult to compete against large retail chains that sell dresses, sweaters, pants and shoes. However, by narrowing down your focus to a smaller category like women’s sweaters, you’ve targeted a market. You could even get more specific with your targeting and sell only sweaters made from a certain type of fabric. The choice is up to you.
While “women’s sweaters” may receive less searches than “women’s clothing,” you know that the group who is searching for women’s sweaters knows exactly what they want. This will actually help increase your sales since searchers are also narrowing down their interest. They are also more likely to make a purchase.
Working With Interested Customers
When you think about it, you really don’t want to be marketing to a more general group of people who may have little or no interest in what you’re selling. The amount of effort required to figure out what they want and get them to a point where they might make a purchase can be very costly. It’s much easier to work with a customer who is already interested and willing to spend their money. This is your ideal client or customer, and what niche marketing is all about.
Defining your target markets increases the opportunity for you to discover the types of customers who are ideal for your business. By doing so, it will increase your sales and get you a better ROI.
Customers Spreading The Word
Often, ideal customers will tell others, like themselves, about your company. It will be much easier to work with these customers, and your target market will appreciate you more for it. Your business will be the one that is offering the precise products or services that this niche market desires.
Quicker Growth and Scaling Ability
If you choose a large market for your business that already has strong competitors, it will take a considerable amount of time and money for you to build a strong marketing foothold. Many other competitors have already spent years honing their marketing abilities and building their marketing and advertising war chests. A narrower focus will allow you to:
- it’s likely that you will have a smaller number of products or services that you sell. With fewer products or services, targeted at a select group of potential customers, it will take you less time to modify information on your website related to those products or services.
Make better choices
- With fewer products or services, comes less complexity. This makes answering business questions easier too. You’ll be able to decide if your product line is appropriate for your customers or if increasing your inventory is furthering your goals
Move at your own pace
- The market won’t dictate how you make business decisions as much as your staffing, sales or other aspects associated with the scalability of your business.
Increase sales and profits over the short and long run
- When you target a smaller group of potential customers, it’s much easier to serve the wants and needs of your customer base.
As you can see, being a big fish in a small pond, niche marketing, has some real advantages for the growth and success of your business. It’s easier on your budget, allows you to become the expert who everyone goes to, and it will produce more sales from the ‘right’ customers.