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Niche Marketing: Why is it Effective?

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Niche marketing is a form of marketing that is geared towards a particular niche, or need, of a specified audience. Businesses who utilize niche marketing as their marketing strategy are usually looking for a boost in revenue, or are young companies who are looking to get a good, effective marketing strategy with as little overhead as possible.

Needless to say, promoting a business is never an inexpensive venture, but it is one of those necessary investments that must eventually be made if a company is ever to be successful. No truly effective marketing strategy is going to come for free, but a good marketing strategy is linearly related to good revenue. If you want to sell something, how will the world know that it is available for purchase if you do not tell them? How will your prospective customers determine the difference between your offering (whether a product or service) and the offerings of all of your competition, some of whom will probably be selling at a lower price than you can afford to offer? There is no way for the public to know anything about your company and all of the many reasons why it tops the rest if you do not tell them about it. Marketing is a way of telling the world about your product or service and convincing them that it is something they want to buy.

Niche marketing is an effective way of marketing because it does not waste time and money marketing to an audience that simply does not care about what you have to offer. Valuable money that could be put to better use is wasted this way everyday and niche marketing is an attempt at eliminating that problem.

Successful niche marketing involves extensive research, for example the study of a particular type of person, the type of people they associate with, their interests, their needs and where they usually go to satisfy those needs. Having determined the buying process that your target audience uses via niche marketing research, you then carefully target your marketing resources to make sure that your potential customers are exposed to your product or service at appropriate times and venues. These venues may be physical locations (real estate) or websites (virtual real estate).

With niche marketing, if the offering of a company you are marketing for addresses a particular need that people go to the phone book to find, it would be a good idea to have the company sponsored in the phone book. If the company is Internet based, it would be a good idea to do some keyword research and go about investigating the particular way in which Internet users satisfy their need using the online resources available to them.

Keyword research can even reveal the particular phrases that are used when people type in search queries on popular Internet search engines, such as Google, Yahoo! and Bing (formerly MSN Live Search). Many times, this is the only strategy that Internet companies use to advertise their wares, as it is the most cost effective and influential way of connecting with the intended customer base.

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