Fundamentals of Niche Markets

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Albert F A Matthews
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Fundamentals of Niche Markets

Post by Albert F A Matthews » Sun Nov 03, 2013 4:26 pm

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Introduction To Niche Markets Through Social Networking


Everyone is familiar with the concept of a market, where a variety of goods, products and services are traded. A niche market is simply a subset of the market with a specific product focus aimed at meeting the demands of a particular target group, such as the price range, product quality and the demographics.

In fact, basically any product that is sold can be put into a specific niche market. However, because some products are aimed at a general target group because of the focus of the market subset (e.g. price), these are what is commonly known as the mainstream niche or high demand markets.

Not surprisingly, due to globalization and a world view of modern business, niche markets have found a very important advantage in the advent of the Internet.

Internet-based niche segments of larger markets can be tapped into by savvy entrepreneurs by the use of technologies to build websites, create blogs and other social network based marketing strategies. This allows the niche marketer to rapidly gain access and exposure, thereby better targeting their customer base to build loyalty and in turn a steady and passive income stream. The reproducibility of niche marketing allows the technique to be repeated across several other niche websites depending on the target income level one would like to generate.

As many niches become saturated with marketers, and the market share is divided amongst increasingly more competitors, it is important to find smaller and new undiscovered niches. Therefore, unlike traditional business, niche marketers also need to constantly evolve and adapt their business to the supply and demands of the current market.

With the advent of social networking sites like Facebook and Twitter researching niche markets that will practically buy everything you can throw at them has never been easier.

This guide will provide useful information for those who are interested in learning more about this cutting edge market and beginning a potentially lucrative career in niche marketing.

Throughout this book, you will learn about many of the benefits of niche marketing and how you can successfully start your own niche marketing business. Understanding the pros and cons of niche marketing can make going into to it much easier and less stressful because you know what to expect before you even get started for the most part.

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Why Niche Markets are Important

It is only recently that niche marketing has started to make a serious comeback with the advent of social networking websites where you can study openly what thousands of consumers tell each other about that things that interest them and what they want. Before the Internet and the growing popularity of social networking, a niche populated by a total of one thousand people scattered all over the Earth would have been impossible to reach. Put those 1000 people on the Internet, and they all search Google for a keyword phrase associated with their own interest which lands them at the one site that caters to that interest. Presto! A new niche market is born.

The problem in the past has been discovering what niche markets would be most profitable, and what the customers in those niche markets want. Now with everybody tweeting all of their wants and desires all day long, or messaging each other back and forth on Facebook niche marketing research has never been easier.

The ground-breaking book, "The Long Tail" by Chris Anderson, is one recent work from a few years ago that analyzed the niche market strategy. The name "the Long Tail" comes from what a graph looks like if we record the market sectors of any category of product ranked by popularity. Here's the proverbial picture worth a thousand words:



You can find this shape in the statistical distributions of many markets. Typically, there will be one or two hugely popular brands or varieties and as many as hundreds of less popular brands or varieties.

In this graph, you could say that the chart is the beverage market and the green area is milk and soda, while the yellow area is fruit juices, vegetable juices, alcoholic beverages, flavored waters, energy drinks, yogurt shakes, etc. Or you could call the graph computer systems, and the big green area is Microsoft, while the yellow area is Apple, Linux, BSD, Solaris, OS/2 Warp, ReactOS, Plan Nine from Bell Labs, and so on. Now, if this were your market, which part would you go for? If you go for the green area, you'll be competing with thousands of others who have the same idea. If you go for the yellow area, you'll usually have a bigger patch all to yourself - and the undying loyalty of a customer base!

You see many examples of "long tail" marketing all over the Internet, but the full realization of the power of this marketing method is just beginning to be understood. In the rest of this book, we're going to thoroughly explore the niche marketing strategy. Our studies will range from dry and scholarly to freakishly quirky, but always will be covering some very exciting territory!

The Importance of Choosing a Niche in Internet Marketing

Internet marketing has become one of the most profitable types of marketing available for any type of product that you may sell. The Internet has the capability of reaching a wide audience and those who take advantage of this widespread reach find themselves in a position where they can benefit greatly from potential clients from all over the world.

There are many people who are attempting to profit from selling products on the Internet but those who are truly successful realize the importance of focusing their efforts on a specific niche. This means the investor focuses his marketing effort on a specific area of interest. This enables the investor to have a more focused strategy for reaching potential customers.

Is Niche Marketing For You?

Why Cater to smaller groups?
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Even though marketing logic suggests that selling products to a large group of people will yield more profits than selling to a smaller group, niche marketing has been the driving force of many large corporations. You are a small business trying to compete with not only these large corporations, but other small businesses as well. Since large corporations for the most part do not view niche markets as profitable in the long run, you have the opportunity of catering to these groups without having to worry about the competition.

Another benefit to finding niche markets and selling directly to them is that you will already be familiar to their needs. This makes creating a product, whether it is an ebook, report, ecourse, or step-by-step guides, and selling it much easier because you do not have to convince niche markets that they need your business – they already know this because of the lack of information they have been able to find so far online in their interest group.

If you are the type of person who is easily bored by day to day tasks, being able to sell new products every few weeks or months to a different group will never become boring or old. Because of the research you will need to conduct, not only will you learn more about topics you might not have known existed, each day will bring different and exciting new challenges. You should be disciplined however, in order to thoroughly research niche groups, create email lists, correspond with customers, and create informative materials that they will want to purchase.

One final benefit is the ability to manage your own time. Working from home or a small office where you are your own boss gives you more free time to enjoy hobbies, meet with friends, and set your own hours so you can work when you want. There is no greater joy than being able to run your own business, help fulfill the needs of those who are being ignored online, and being able to decide which niche markets to follow and which ones not to.

Below is a short list of pros and cons that can help you as you begin your first niche marketing project.

Advantages

• Small start-up costs
• Research is easy to conduct using Google, Facebook, and Twitter
• You can fit research into your schedule
• No 'hard selling' required because you find a niche first before creating a product
• Informational products can be sold and sent online to customers
• Easy to market
• You can have several products out there at one time
• Endless niche possibilities
• Can easily be a part-time or full-time job

Disadvantages

• A little overwhelming at first
• Research can be time consuming until you create a routine for yourself
• Internet can be a daunting place filled with a lot of information overload
• You probably don't know anyone who is in this line of work, so you may feel isolated at first
• Profits will differ from project to project
• Some niche markets will become unpopular faster than others

As you can see, the pros definitely outweigh the cons. Because it may take some time for you to get used to finding niches and creating products that satisfy a need, try to remain patient throughout the process. Once you have used some of the tools mentioned later in this book and others you discover on your own, you will find that niche marketing isn't that difficult at all.

Next = BENEFITS OF NICHE MARKETING BUSINESSES
Thanks For Reading,

Albert F A Matthews
Weedo Group Network™

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