What is your niche market

The entrepreneur's handbook

Briefly in advance: what is a niche market?

A niche market is a part of a larger market with its special needs or preferences that can differ significantly from the original sales market.

For example, there are many different niches and segments in the women's shoe market. Shoes for vegan women would be a niche market, as would shoes for oversized feet or special shoes for nurses. These would all be niche markets in the larger women's shoe market.

What is a niche?

Almost every market can be further refined or subdivided according to the special needs and preferences of its target group. Some of the most common methods of defining a niche are based on:

  • the price (high, moderate, discount)
  • the demographic base (gender, age, income level, level of education)
  • the quality level (premium, high, medium, low, cheap)
  • the psychography (values, interests, attitudes)
  • the geography (the exact location of the buyer)

How do you market a niche?

Marketing a niche is much easier than targeting a broad market, as a niche can be much more clearly defined in terms of needs, wants, or preferences.

For example, the sale of handbags is a huge market where there are many niches with different uses for the product. For example, your target group could be young mothers who want a handbag that they can also use as a diaper bag. You may also target students who need a sturdy bag to hold all of their books. For example, mothers might need a large beach bag for their family's equipment when they are on vacation.

The list of examples is far from over. Each individual market niche can be further refined and subdivided.

Once you know the different needs of your niche, you can use your marketing to address them directly. This gives you a much better chance of attracting a buyer's attention and doing business. After all, with the personalized marketing of your niche, you make it clear that your product is specifically intended for this or that target group.

The challenges of marketing a niche

Aligning to a niche as a focus makes it infinitely easier to find the right target customers and convince them of your offer. But first you need to make sure that there are enough buyers in this niche.

A pet store that caters to a wide variety of pet owners will have a much larger potential customer base than a branch that caters to ferret owners or poodle lovers. These niches may be too small for the local population.

Veterinarians who specialize in treating cats or horses, for example, stand out from other veterinarians and position themselves as experts in this niche.

This is the advantage of focusing on a niche market because people prefer dealing with specialists. And that's exactly what you become when you claim a certain niche market as your focus: an expert.

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from entrepreneur manual

This specialist magazine is aimed at small and medium-sized companies, the self-employed and start-ups who do not have a specialist department for every topic. There are practical tips on corporate management that can be implemented independently.