In order to find the best place to start up a home business and become successful, you must know what the term, “Niche Marketing” is all about. It is not a store that you go to while shopping for a niche. So what is a niche marketing? The place to start is to first define what a “niche” is, then what it has to do with marketing.
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What it is not – “Many people talk about ‘finding’ a niche as if it were something under a rock or at the end of the rainbow, ready-made. That’s nonsense,” says Lynda Falkenstein, author of Nichecraft: “Using Your Specialness to Focus Your Business, Corner Your Market and Make Customers Seek You Out.” Good niches don’t just fall into your lap; they must be carefully crafted.
So what is a niche? The wikipedia describes a “niche” as: A niche market is the subset of the market on which a specific product is focused. You can also compare it to a specific group of people all following the same subject, or thing.
Niche marketing is highly specialized and every product on the market can be divided into specific niches. In Lynda Falkenstein book she has a 7-step method of perfecting niche marketing in making your business successful.
1. Make Your wish list.
Know who you want to do business with. “Be as specific as you can”, Falkenstein says. There are two markets you can cater to: Retail or business. Concentrating on business, for example, would be considered B2B, or business to business.
Retail, would be the consumer market, which is the largest of the two markets, but also more competitive.
You must understand your target market and what they want. “You must know whom you desire to do business with”, Falkenstein says, or else you stand the risk of exhausting yourself and confusing your customers.
Remembering who your customer is must be a priority because (a)”You can’t be all things to all people and b) smaller is bigger.” A niche isn’t the same as the field in which you work. Retail clothing business is a field, not a niche. A business specializing in “maternity clothing” is a niche within the retail clothing field.
Falkenstein suggest to consider these keys to help you focus:
- What do you do best that makes your selling point unique from everyone else
- What are your accomplishments
- Identify the most important aspects of your life
- Look for patterns that reveal your unique characteristics in solving problems
- Your niche should come naturally from all these key elements of focus that you can build on to become successful in your chosen niche.
3. Describe the customer’s viewpoint.
Falkenstein describes a successful business using what she calls the “Platinum Rule”. “Do unto others as they would do unto themselves.” When you are able to view the world from your customers perspective you can identify with their wants and needs. The best way to achieve this is by talking to them personally to get their viewpoints.
Now your niche should be taking shape as you have all the necessary information to hone in on your potential business. A good niche should have these five qualities:
- This niche conforms to your long term goals and agendas.
- There is a demand for it – mainly customers.
- Your business plan has been carefully planned.
- It is “unique”, the only one in town.
- It develops and is able to expand as your market changes, ensuring long-term growth and success.
5. Understanding Your Business
By using the formula created in Step 4, you can evaluate your niche for products or services that your business will provide. If you find that there are more business travel than previously considered, for example, perhaps you have identified a weak link in your niche. So scrap it and move on to the next idea.
6. Test Your product and Market.
Once you have found a match between business and product, it is time to test it. Provide an opportunity for customers to actually purchase your product. You can learn a great deal of information in a short period of time on whether your product is appropriate for your test market. If you must spend a lot of money for this test, then you may have found a flaw with your business, or product.
7. Your ready to Market!
Now that you have accomplished all your research, now you are ready for implementation. This is the easiest of the seven steps and if all your research has been true, then success is only the next horizon.