Have you ever wondered how there can be so many beauty salons, web design companies, lawyers or Mexican restaurants in the same geographical area? Especially in small populated areas? Perhaps the demand is high. Or, perhaps some of these companies have distinguished themselves by targeting a niche market.
A niche is a special area of demand for a product or service. Not all hair salons, for example, are equal in price, customer service, convenient location and hours, scheduling, stylist experience, etc. The same is literally true for all businesses; web design, marketing consultants, hardware stores, lawyers. The list goes on.
Niche building and marketing to both your general market and your niche is a smart marketing and business strategy. You can’t expect to start a business with millions of competitors worldwide (through the Internet), millions or thousands of regional competitors, and a dozen or more local competitors, and instantly, or easily, gain fair market share without creating a market niche.
Every business has a niche. The key is to identify what that niche is. An online retailer like Amazon.com has a different niche than competitors Barnes & Noble or Borders, which rely more on developing a local presence and foot traffic. A few years ago, DHL featured a brilliant commercial taking on the leading overnight delivery service. DHL did not claim to be number one or have a lower price. Instead, they capitalized on a niche market, being number two and a reliable backup service when you, the consumer, need it most. It was a brilliant campaign.
Identifying or creating a niche means delving into what differentiates your company, product or service from the competition. The typical marketing question is “Why would I buy from you instead of Company X?” Your answer is likely just scratching the surface and matches what many competitors might claim. This is where you go deep. Look at their location, hours of operation, years of experience, price, friendly staff, response time to customer inquiries or order processing, the quality of their product or service delivery, the personalized attention, etc.
For example, marketing easy access to your business from a major highway or highway is a niche that should drive traffic and make sales soar. If you’re the only video store in your area, play it. If your video store has a great selection of hard-to-find VHS movies and stays open until midnight, those are two more niche markets. Being a new wholesale supplier in a regional area is great news for your local city and region, creating multiple niches for your business overnight. Claims to be the first, the only, or the original are unique niche selling points that no one else can (legitimately) claim.
Don’t wait for your industry or market to become saturated to identify and market your niche. Start now. Work on both your general market and your niche to develop a strong foundation for success so you can survive when competition intensifies. As your business grows or your industry changes, so will your niche opportunities.