A lack of understanding the importance of niche marketing is the most common mistake of new small and web business owners. This may be due to the fact that many do not know what a niche is.

A niche is essentially a subgroup; in terms of marketing it is a consumer segment in which to target. In other words, niche marketing is target marketing.

However, even those who completely understand niche marketing do not always stick to it. One of the reasons may be how limiting most people think it is.

Cut out other groups when you pick a subgroup to build your business around. It’s inevitable. Choosing to serve upper class middle age females means you are cutting out young blue collar men.

The problem with this is people have not been made to understand how beneficial this is to one’s business. Because as much as specialization is recommended, it has become synonymous with limiting one’s skills, interests, and income cap.

Limiting one’s income is the major issue. Business owners automatically assume they can not make huge profits unless they serve the general public. Therefore they spend countless amounts of resources looking for that niche that will cater to just about everyone.

The problem may have started when people got the wrong of impression of niche marketing. They chose niches that were too small to generate great sales. Or they chose niches that were based on fads and passing trends. They overcomplicated niche marketing for themselves and others.

Too much time was spent on finding the perfect niche rather than finding the perfect way to target that niche. This is what niche marketing should focus on, how to get the attention of your market. And to do this effectively you need to do the one thing that niche marketing does so well is cut out other groups.

Services are not niches, neither are products. Because the fact is most of us use the same services and products. But we all use them differently; have different expectation of them, and different needs that drive us to use them. And this is why niche marketing is so effective and important.

Apples for example, are a general product many of us use. But someone on a diet will view apples differently than someone who is a gourmet chef.

Therefore, creating a niche marketing campaign for the dieter will vary dramatically than for the gourmet chef. As a marketer I would use different keywords, highlight different benefits, offer the apples at a different price point, and choose the layout of the campaign according to the niche.

I’m selling the same product but they way I sell it changes. Because it is easier to sell something when you know the target, one would focus on one niche category to study, understand, and create campaigns for.

It is too much stress and pressure to incorporate eliminates that cater to everyone into one campaign or website. To make marketing easier, we eliminate certain subgroups that we feel won’t benefit from the product or service, are not ready for it or can’t afford it.

High end retailers are one of the best examples of niche marketing. They create their campaigns to suit the need and pique the interest of a certain income class.

They don not try to target anyone below that price point. They know it would be a waste of advertising dollars. Even though they are cutting out a significant portion of the public they continue to increase profits, because they cater well to those who can afford their merchandise.

Take a look at your niche marketing business as a whole as see who your target is. Don not be afraid to cut out certain groups. This is what niche marketing is about and this is why those who do it well build successful businesses.

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