Niche market is a term that must be understood if someone wants to wrestle into the business world. Why? Because the niche market can help the business win the competition between competitors in an industry.
Well, if you plan to enter this field in the near future, but don’t really understand what a niche market is, don’t worry. Because the following article will discuss thoroughly about the definition of a niche market, benefits, examples and also how to determine it. Don’t miss it!
What is a Niche Market?
Many business people put aside the niche market aspect in supporting their business because they think they can sell well in the market and prioritize selling broadly without looking specifically at their target market.
In fact, however, it is not like that. On the other hand, determining a niche market is a must if you want to increase product sales.
In short, the niche market is the process of targeting the market specifically to get the right potential customers, so that the percentage of buying and selling transactions that occur is likely to continue and grow.
This is because business people who take advantage of the niche market will become the center of consumers in meeting a need.
For example, when you become a businessman engaged in cooking equipment, such as selling knives, pans, fryers to ovens. Of course, your target market is people who have a need or interest in cooking, right? Like housewives and cooks.
By using a niche market, of course, potential customers who know your business will think “If I need a pan or knife, I can buy it at person A’s place”. This is of course very profitable because you can get consumers who really need the products you offer.
Maybe many business people think that using a niche market will limit their opportunities to get more customers. Actually it doesn’t matter, but the risk of getting potential customers will certainly be more difficult because not everyone needs or is interested in the products or services offered.
Niche Market Benefits
When you set a niche market for a business, there are actually a lot of advantages and benefits that you can get and gain greater profits than just selling without knowing the specific target market.
Then, what are the benefits of implementing a niche market? Well, the benefits of a niche market are:
1. Business Presence Easier to Recognize
Before a business can become big and gain abundant success, of course one of the important factors is if the existence of the business has been identified first. Yup, one of the benefits of a niche market is that it will be easier for people to recognize the business you offer.
Niche market is a strategy that also makes your business look professional because it only targets certain consumers. Surely you’ve come across some shops in e-commerce which sells a variety of goods but does not highlight the main product offered.
For example, a shop selling products skincare, baby equipment, and ornamental plants. Of course, the shop owner thinks that selling a variety of items like this will attract buyers to shop at his shop. In fact, as a potential customer when you find a store like this, you are also confused as to what the main product is actually being sold in the store.
2. Focused Marketing Target
Furthermore, the benefit of applying a niche market is to focus on target marketing. Especially if you have budget limited, it must maximize the marketing process and definite market targeting so that these products are successfully sold on target.
If, for example, as a businessman, you target young people between the ages of 19-23 years, of course, it will be easier for you to find aspects that are able to attract potential buyers. Such as determining the image design, color, and shape of the product if it is indeed being trend and much loved by young people.
3. Reducing Business Competitors
Finally, the benefit of a niche market is to reduce business competition. Running a business would not be complete without competitors. This is because the type of business you choose is also run by other people, so you must know very well how to highlight the business well.
The more you “narrow” your niche market, the less your competitors will be. Establishing specific things that you apply to your business, of course, provides benefits because not all business people have the standardization that you have.
How to Determine a Niche Market
Actually, how to determine a niche market is enough tricky because you have to understand what kind of business you want to run and who the competitors are. Of course, this takes time and cannot be done in a hurry.
However, take it easy! There are some easy tips that you can apply in determining this niche market. How to determine a niche market is:
1. Understanding What You Are Interested in
First, how to determine a niche market is to understand what you like. Developing a business based on trends, especially for beginners, is actually possible. However, if you run a business that you really like and are interested in, of course it will be easier and more fun to do.
For example, let’s say you enjoy making products like scented candles or Homemade skincare, then it never hurts to develop it into a business. If done consistently, of course you will not be bored to run the business in the long term.
2. Highlight the Uniqueness of the Business
There is no truly original business, but rather modifications of existing businesses. Therefore, take advantage of your creativity by highlighting the uniqueness of your business.
A simple example is like you are selling a product hair mask and in the product section there are barcodes which can bescan by buyers to listen to various kinds of songs in one playlists. Of course while using hair maskusers also feel comfortable listening to these songs, right?
3. Ensuring Profit Opportunities
Highlighting the uniqueness of a business is indeed very good, but you also have to be realistic, does the business idea that you want to realize today has the potential to increase profits or not? Well, the next way to determine a niche market is to ensure profit opportunities.
This is where you can do your research. Look for competitors who have a business similar to your idea, then you understand, is the product in demand and interesting to sell? If so, then you can start this business.
4. Trial and Error
It may cost time and money in the process. However, a business will not be separated from ups and downs because adjustments are needed until the business is finally standing perfectly and able to survive in the long term. So, don’t be bored toupgrade the business that you are currently running, yes!
Niche Market Example
One example of a niche market in Indonesia is providing food for pets, such as dogs and cats. Many pet owners need food stocks, such as dry food and wet food from various brands.
Of course, you can make a business selling pet food as a pet food business niche your market because the target market is people who have dogs and cats only, not owners of pet birds or fish.
How? By now you must have understood how important the niche market is for business? Yup, the niche market is a more focused target market. By implementing the following strategy, of course, your business marketing activities can be carried out precisely to a more specific audience.
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