A Niche Market is a small or narrow area of marketing. Niches are not large groups, but rather they are smaller ones. The main market category might have submarkets within it, which are niches. For example, the broader market category “sporting goods” has submarkets such as hunting, fishing, bowling, and golf.
Each of those could be a niche market. For example, the golf market would be dominated by businesses such as Titleist, Nike, and Calloway.
What is a Niche Market?
The word niche is used in everyday speech to describe a small job or role within a larger organization. For example: “We need someone to handle the phone while we’re out on vacation. Do you know anyone who might like that?” “Sure! I can send my sister around tomorrow.” This is not what we mean when we talk about niches in business.
We don’t mean jobs within an organization; instead, we are talking about how businesses define their target markets and focus specifically on one area of interest at a time for each product or service they offer.
For instance, there are numerous companies offering roofing services such as installation and repair. However, some of them focus on residential roofs while others might focus on commercial roofs or even new construction.
Niche marketing is all about identifying small groups of people who share the same interests and selling your products or services to those individuals. By narrowing down your market you limit the competition while at the same time increasing the chance you will find your target audience more easily online.
A Niche Market is a smaller group within the bigger picture that shares common likes, dislikes, needs wants, etc… If these people can be found through keywords they are considered an “Active” niche because they are actively looking for something related to what you sell. This is not only true when it comes to websites but with social media channels too.
Active niches contain people who are actively searching for what you sell online. If your niche is “Tailgating”, the keywords that matter here will be words like “Grills”, “Grilling Accessories”, “Drinks”, etc… Because these terms get searched for over and over again, they’re considered active niches to marketers offering products related to tailgating.
The queries, where the audience is seeking a particular item to buy, are known as buyer intent keywords.
These types of Active niches are ideal because they offer businesses an opportunity to create long-term relationships with customers by offering them products or services that meet their needs in a unique way!
The idea behind this strategy is simple: when you find out exactly what your target audience needs and how they want it, give it to them, and you will see great results.
How To Identify Active Niches?
Start by brainstorming different ideas that might be related to what you sell. Some examples for a graphic designer could include logo design, stationary designs, web page design, business cards, and many more! Write down as many niches as possible and then research each one using a keyword tool like SEMrush. This tool will show you the number of searches those keywords receive on average per month.
Once you find an active niche with high search numbers write it down along with the competition your market is facing. Use this information when creating your campaign so it’s easy for people to find your product or service online. The more specific the better! By narrowing
The Benefits of a Niche Market
The most obvious reason to choose a niche market is that you have a knowledge of the needs and wants of that small part of the population.
Choosing a niche or submarket within a broader category is advantageous for several reasons:
The first is that a niche market often has less competition. When you target a broad subject, you are competing with a large number of websites. When you niche down, you are competing with fewer sites, which is easier.
The second reason is that you are better able to target your market – whether it’s in the form of advertising or product selection. You can focus on one specific part of a larger population.
For example, when writing an ebook about how to drive, you could simply say “drivers ” or “motorists”. This would put you in the category of writing for everyone who drives, which is too broad. Instead, if you narrow down to people who live in New York City, there are many more potential customers, since it’s a niche market.
It is much easier to target this small population than it is to try and create content that will appeal to all drivers everywhere.
The third reason why choosing a niche market is advantageous is because you can specialize. You can become an expert in that submarket because there are fewer people competing with you to gather information about it.
How to Find Your Niche Market
The most obvious way to find a niche market is to focus on your hobby or something you know a lot about. If you enjoy bowling, then that could be your niche market.
The second method is to look for problems that are common in certain populations or subpopulations. These can become great niche markets.
Say, for example, that you have a hunch there is a huge section of the population who has trouble keeping their house clean. You might decide to write about how they can do so successfully by using some simple strategies. You have now created a submarket within the general umbrella of house cleaning – something which would potentially be very profitable indeed!
Choosing an appropriate niche market is beneficial because it will allow you to find success more easily than if you were to go after something too broad or not specific enough. Not only that, but you will be able to develop your success even further by becoming an expert in that niche.
One example of this might be to start out as a website about dogs and their care. From that, you could narrow your market to Maltese dogs. From there, further narrowing by color (e.g., white) or sex (e.g., females) would help even more to target your audience successfully.
Profitable Niche Markets
There are many niches that can be profitable. Some of the most successful niches that entrepreneurs have found include:
- Wedding planning and related products
- Shoes and accessories for pregnant women
- Green living – organic foods, green homes, etc.
While there is some overlap between these niches, each of them has enough of a difference to make them potentially very profitable. You may want to even try creating a hybrid niche market by selling maternity wedding shoes – something nearly no one else would think about offering!
Types of Niche Markets
By choosing a broad category such as sports or pets you will get into an area where competition is fierce with other websites trying to capture traffic from that group. It’s better to build out from your hobbies to specific areas.
There are four basic types of niche markets:
Demographic – This kind of market is based on the characteristics of the people in your audience, such as age, sex, and location. For example, you could create a website for pet owners living in New York City. Keep in mind that some demographics will be more profitable than others depending on factors such as income and education level.
My Lifestyle blog for midlife women is an example of a demographic niche market.
Behavioral – A behavioral niche market is based on what actions your audience takes rather than who they are as individuals. For example: if you were writing about how to lose weight, then those interested in dieting would be part of your audience even though they come from many different demographic groups (age, gender, etc.).
My Keto website is an example of a behavioral niche market.
Technographics – Areas such as technology, broadband usage, and buying habits fall under this type of niche market. This is one that can be very profitable when approached correctly, but it’s also an area where there is a lot of competition from major corporations.
This website is an example of a technographic.
Geographic – This sort of niche market focuses on the people who live in a certain area. Although your audience will come from many demographic groups (age, gender, etc.), they all live in the same location which you choose to target.
My Las Vegas real estate website is a good example of serving a geographic niche market.
Examples of Niche Markets
The examples below highlight several different kinds of niche markets within larger categories to give you a better idea about what might work best for you:
Demographic Niche Market Ideas
- Families with school-aged children
- Senior citizens
Behavioral Niche Market Ideas
- Pet owners who have a specific breed of dog or cat or other pet.
- Parents with newborn babies and infants up to age 1 year old.
Technographics Niche Market Ideas
- Gamers who play certain types of games (e.g., role-playing, MMORPG, etc.) on particular platforms (i.e., Xbox 360 vs. PlayStation)
Geographic Niche Market Ideas
- People in specific cities or towns within a state or province.
- People living in certain regions of the world.
Niche Market Research
Finding a niche market may seem like a daunting task at first, but there are tools to help you get started. Some of the things you can do include:
- Look on Amazon for books on your topic area and see how the tables of contents are organized.
- Search Google for keywords related to what interests you and see who ranks number one – that’s a good indication of where your competition will be.
- Use free online services such as Survey Monkey, Poll Daddy, or Survey Gizmo to find out some information about your potential readers.
- Use SEMrush to analyze competitive websites and drill down for subtopics
Once you’ve found an idea for your niche market, it may be wise to brainstorm other areas within that same category so that there is room for expansion down the road. For example, if your target audience is gamers, you could expand to include people who are interested in other types of games or gaming systems.
Niche marketing helps you to cut through a crowded market and win a coveted spot on search engine result pages making it easier for your prospects to find you. By focusing on a specific group within a larger market, you can establish yourself as an authority and build trust with your audience so that they will come back again and again. The more targeted your message is, the better chance you have of success!
Lori Ballen is a real estate agent in Las Vegas. She’s a digital marketing specialist, speaker, and marketing coach and loves to share her “Ballen Method” to generate website traffic and leads online. Lori’s specialties are SEO content writing (ranking on the search engines), social media strategies, and affiliate marketing. Need a website? Contact Lori’s brothers Jeff and Paul Helvin at Ballen Brands.