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 businesses 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 to concentrate your marketing efforts towards one specific group of people who are more likely to buy your products.
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 with niche marketing? Below, we provide a few tips on how to master niche marketing for your business.
Tip #1: Find your niche market
Finding your target market needs to be completed before you begin developing your niche marketing strategies. A target market is defined as a specific group of consumers you want to attract. 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, we recommended that you look at your current set of customers and try to find similarities. Which customer type brings in the most business? Why do they return to buy more? What types of products do they purchase?
B. What needs does your product/service fulfill?
Having a deep understanding of the products or services you are offering can help you know which aspects of your business is 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 for many businesses owners, it’s 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 those customers look like.
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 can include age, gender, location, income level, education level, occupation, marital status, and the ethnic background of a particular group.
Narrowing down your customer base will help you successfully design advertisements and promotions to engage your audience.
D. What are the psychographics of your target market?
Finding the psychographics of your target market is a very similar process to searching for the demographics of your group.
Psychographics is different in the sense that it dives more into discovering your target demographic personal interests. These personal characteristics include your target market’s lifestyle, attitude, values, interests/hobbies, behavior, and personality.
This information will help you build a personal connection with your target audience.
E. What are your competitors doing?
Studying your competition’s current customer base can give you more insight into what markets you may be overlooking.
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 compete. 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 huge profits.
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 and target a selected group of people. 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 the journey to finding your niche customer and knowing how 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 will yield positive results.