What is Niche Market, Really?
Let’s Unravel The Mysteries of Niche Marketing
In this video you’ll learn:
- What a niche is and how to identify one
- What marketers normally mean when they refer to a niche
- Why almost all Fortune 500 companies today started from a niche market.
Different Definitions of “Niche Market”
To get the definition of a niche market, the first resource I turned to was WikiPedia, and here’s the official definition on their site:
A niche market is the subset of the market on which a specific product is focused. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact. It is also a small market segment. For example, sports channels like STAR Sports, ESPN, STAR Cricket, and Fox Sports target a niche of sports enthusiasts.
Every product can be defined by its market niche. The niche market is highly specialized, and aiming to survive among the competition from numerous super companies. Even established companies create products for different niches, for example, Hewlett-Packard has all-in-one machines for printing, scanning and faxing targeted for the home office niche while at the same time having separate machines with one of these functions for big businesses.
This is a very dry and academic view of a niche market, and it’s the reason why most people don’t actually read WikiPedia. But the important facts are:
- A niche is the subset of a market
- A niche is a small market segment
- A niche has specific market needs
My definition, for the purpose of online marketing, is much simpler to understand:
A niche is a group of people who share similar interests, needs, wants and tastes.
When a group of people share similar interests or needs, they tend to display similar characteristics. They also tend to flock together and can easily be identified.
- Interests – Learn guitar, learn piano, DSLR photography, make money online.
- Needs – Stay-at-home jobs, same-day loans, online degrees, diabetic kits.
- Wants – Lose weight, get fit, cure acne, live longer,
- Tastes – Spicy food, rock music, One Direction, Game of Thrones.
A niche can also be demographic, geographical, cultural or language-driven.
- For example, the Hispanic or Chinese communities in America can be seen as a niche since they have unique characteristics that may not be shared by the rest of the population.
- Not everyone speaks English, so translating and modifying existing products to cater to their needs can be a money-making venture. It’s a global market anyway, and there are millions out there who do not have access to the things you have due to the language barrier.
- Baby boomers and new moms are a demographical subset of a population. They are in a unique stage of their lives where their needs and wants change dramatically in a short time.
What is The Best Niche?
At any given time, the average person belongs to many different niche markets.
- I love playing the guitar and constantly seek out new effects, software and accessories for my hobby. I subscribe to many guitar channels on YouTube and I used to be in a band hanging out with other musicians.
- I want to get fit and lose my belly, and to achieve that I have enrolled in different programs, bought smart watches that monitor my activities, and use different fitness apps. Since “being fit” is an unmeasurable goal, I keep buying more advanced stuff as I get fitter.
From my experience, wants are the most profitable angle for a niche marketer, since there’s no limit to a human being’s desire.
People want things they don’t have, and their desire to get those things compel them to read more, spend more and try multiple different solutions.
When you target a want as a niche, you generally have the opportunity to sell or promote tons of different products to the same person, since they will never really be satisfied with just one.
People who really want something tend to be impulsive buyers too, which is great if you’re on the end that receives their money! You’ll be able to see proof of this in real life when you observe how much money people spend to look younger, be more attractive, get recognition, etc.
A need can be powerful too, but generally speaking once the need is satisfied, you’ve lost a customer.
Interests and tastes tend to be temporary, and unpredictable.
Only Hobby Stores Target Niche Markets..
That’s not true at all.
Almost all businesses you can think of started with a niche. The major corporations today started in a small niche that grew so quickly until it became a market of its own, turning them into multi-billion companies instead of a hobby store.
It’s hard to tell when you view these companies as they are today, but go back in history and you will see that they found a niche, conquered it, and grew with it.
Take FaceBook for example.
When it started as “The FaceBook” it was “limited by the founders to Harvard students, but was expanded to other colleges in the Boston area, the Ivy League.”
By being specific about who they serve, it was easier to build a platform and see if it’s going to work.
It did work, and as it turned out, the rest of the world wanted it too!
Niche marketing is the idea that you can be successful with less effort , money and time by finding a specific niche, and serving that niche completely.
When an online marketer talks about niche marketing, it’s usually about building a website based on a niche discovered on Google, and promoting products or displaying ads targeted to that niche on their website.