Niche Markets

Narrow markets are often referred to as Niche Markets – A narrowly defined group of potential customers/clients. A niche market usually evolves based on market demand for a product or services. Niche markets can arise based on changes in society, technology or general environment.

Product and service development to a niche market is the process of finding and serving pockets of customers in a profitable way by designing custom made products and services for the specified market.

Niche Markets can be very profitable, even though they may be small.

Many people believe only large, generic markets will be profitable. This is not always the case. A small, very targeted market can actually be more profitable if you are viewed as an expert within this market and you go deep into the market with your offerings.

Many entrepreneurs often ignore niches due to their perception. Again, smaller markets can have great profit potential.

Here are two very good examples:

Health expert for all adults

Health expert for those 100 pounds or more overweight

Dog trainer for any breed

Dog trainer for guard dogs

Market Segmentation

As you develop your marketing strategy keep in mind the various segments of the market. Due to segmentation you must market in different ways to different groups. You cannot be all things to all people. Instead of marketing a product in one way to everyone, you must recognize that some segments are not only different, but also better than others for your product.

Regardless of your product or service, take your total market and divide it up according to what is important to each.

Characteristics of customers based on ideology, values, beliefs and attitudes.

A person’s predisposition has to do with culture, upbringing, or aspects that would influence their buying decisions.

This deals with any social influences such as education, religion, political influences or peer pressure. What are the roles of social forces that determine your customers, buying habits?

What is it about your customers' lifestyle that needs to be taken into consideration? Are they liberal or conservative? Young or old? Active or sedentary?

The examples above will hopefully spark ideas on how you can narrow the way you define your expertise and offerings.

Author's Bio: 

Discover success insights from experts around the globe who are out there making a difference and making a great living in the process. Kathleen Gage interviews the best of the best with Power Up for Profits Podcast.