Tips to identifying and creating niche markets

 

Identifying, analyzing and creating the niche markets before entering the niche markets are vital to achieving success in any product segments. But when we refer to niche markets, it must be clear to us what exactly is a niche market. “Niche market is a specific market where there are defined users of product or focussed groups within larger target segments who share the common interests, occupation or lifestyles.”

There are a number of products existing in the market suited to different groups of people and you should know which are the profitable to your business. And so, the groups who share common interests are most likely the potential prospects for your products and only thing remains to be done is identifying and motivating them to purchase and use your products.

 

Identification of the niche market is a mind-numbing exercise for sure, but the benefits accrued from it are enormous and rewarding. A demographic audience essentially requires to be broken down into smaller sub-segments and then they must be visualized in order to create viable niche markets. For example, if you are going to sell shoes, to what age-group will you sell them. If you want to target kids for shoes, in what age-group they are. If you are selling woman wear to mothers, is it for mothers-to-be or for the already existing mothers. Again, the target needs to be defined.

 

You need to then initiate the marketing campaign which should include conducting promotional offers to your targeted segment as well as aggressive advertising to be done in magazines meant for mothers/kids whichever is your niche segment.

 

 

What you should do identify or create the niche market?

If you have been into business from quite some time, you probably know, where you have failed and where you have been successful. So, you can divide the market into different sub-segments according to your product category. You should be able to clearly identify who can buy your products.

If this is for the first time, then in order to identify, you need to do some research before you actually sell products to specific audience. As a naïve marketer, you should undertake the following steps in order to capture the niche markets.

 

 

· Create a unique product: Every product is manufactured and sold after an initial survey. Once you know what product appeals to an audience, you should make that product. The product also should have benefits different from your competitors so that your customer likes in the first use or glance. If you creating entirely a new and innovative product which is to be launched in the market for the first time, put your product on a test period. After some time , you will know which class of customers most like your product.

 

 

Having done all of the above, you constantly need to keep a tab on your niche groups as the tastes and preferences may change with new technology and new innovations taking place in the market.

 

 

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