Here at ecomdash, we service many types of eCommerce businesses but we specialize in providing inventory management software to small and medium sized eCommerce business. We understand that when it comes to smaller businesses, being able to serve all types of people in different markets is a nearly impossible task. But if marketing to everyone is not the way to sell products/services, then how is your business supposed to make a huge profit? The answer is by concentrating your marketing efforts towards one specific group of people who would be more likely to buy from your business. This method of marketing is known as niche marketing and it is an effective method to making more money in the long run. So what can your business do to utilize niche marketing? In this blog, we will provide you with a few tips on how to master niche marketing for your business.
Tip #1: Find your target market
Finding your target market is something that needs to be completed before you begin developing your niche marketing tactics. A target market is defined as specific group of consumers you would want to attract to your product or services. Here are some things to consider when determining your target market:
A. Who is your current customer base?
Before searching for a new target market it is recommended that you look internally at your current set of customers and try to find similarities in their reasons for purchasing your products. Which customer type brings in the most business?
B. What needs does your product/service fulfill?
Having a deep understanding of the products or services you are offering can help you know what aspects of your business can be beneficial to a customer base different from the one you are currently selling to.
C. What are the demographics of the target customer base?
While being able to sell your businesses product or service to a diverse number a people may be a goal of many businesses owners, it is not entirely feasible to achieve. Businesses need to zero in on the group that is more likely to purchase from their establishment and they need to know what type of person they are. This is where the concept of demographics comes into play. Demographics is defined as the statistical characteristics of human populations used to identify certain markets. These characteristics would include age, gender, location, income level, education level, occupation, marital status, and the ethnic background of a particular group. Narrowing down your customer base can let you know how to design your advertisements and promotions in a way to engage your audience.
D. What are the psychographics of your target market?
Finding the psychographics of your target market is very similar to finding the demographics of your group. Psychographics is different in the sense that it dives more into discovering your target demographic personal characteristics. These personal characteristics include your target market’s lifestyle, attitude, values, interests/hobbies, behavior and personality. With this information you will know what your product/service would mean to your target demographic.
E. What are your competitors doing?
Studying your competition’s current customer base and the customer base they are targeting can give you more insight into what markets may have been overlooked.
Tip #2: Market through the right outlets
By understanding your target market, you can know what method of communication would be most effective in reaching your audience. Would it be direct mail? Television? Magazine? Or through social media? While you may want to utilize every outlet possible, financially it can be difficult to complete and some outlets may be not as effective as others and it could be a waste of money. For example, If your choice customer base enjoys doing recipes and other DIY projects, then utilizing a social media platform such a Pinterest can help encourage sales for your business (we have an article about how to utilize Pinterest here). Studying the most effective outlets for your niche market can be the difference between mediocre sales and turning a huge profit.
Tip #3: Invest in PPC advertising
We already have a blog on “Everything You Need to Know about PPC Advertising” and that articles emphasizes the importance of a company utilizing pay-per-click advertising such as Google AdWords and Bing Ads as a way to increase traffic and sales onto their website. This form of advertising helps businesses who are trying to sell to a niche market because a business can create paid advertising that can reach their selected market. With paid advertising, you can choose certain keywords that your target market may use when searching for a product similar to yours.
With these tips, you can begin your journey into finding your niche customer and knowing what steps you can take to properly market to them. Niche marketing can be incredibly profitable for a business and is more cost effective than trying to market to everyone. Finding your niche can be a long process but can yield positive results.