There’s lots of discourse surrounding whether you need to find your niche or not. There are good arguments on both sides, however, you’ll find that majority of businesses do operate within a niche. It’s great for building brand loyalty and ensuring you don’t lose customers to your competitors.
What is a niche market in business?
A niche is a subset of a larger market that has its own set of demands, interests, or identity that distinguishes it from the rest of the market. For example, in the snack industry there are several different types of sweets brands: vegan sweets, extreme sour sweets, bundled sweet hampers, American sweets. If you want a bundle of sweets to give to someone on their birthday, you would find a company that provides that service as opposed to a company who only sells single packet sour sweets.
How to find it?
Let’s go through the questions that’ll help you find your niche. The sweets example will be used throughout the list.
- Reflect on your passions and interests.
This one is great as it doesn’t require much research. Just sit down for 10 minutes and write everything that comes to mind. What sweets do you like? What experiences do you enjoy when shopping for sweets?
- Identify customers’ problems and needs.
Do some market research on what your ideal customers are missing out on. Is there a gap in the market? What pain points do your ideal customers face when buying sweets? There hundreds of businesses offering the same product, how can you differentiate and solve a problem for your ideal customer. For example, if your ideal customer loves sour sweets (attractive) but can’t find good quality sour sweet bundles for great value (pain point), how can your small business help?
- Research the competition.
Get on incognito mode and start searching! You probably already have a few ideas of who your competitors are. Look at what platforms they’re on and what they’re posting. If a competitor is offering a sour sweets bundle and it’s getting a lot of attention, how can you compete?
- Define your niche and its profitability.
Give your niche market a title like “DIY sweet hampers.” This will make sure you stand out in your industry and stops you from straying away from your business plan. You’ll have to look at multiple factors such as customer location, cost of products, quality of products and services. Take a look at Amazon for pricing inspiration, it will also show you customer reviews so you can better understand what attracts your ideal customers and their pain points.
- Test your product or service.
Of course test your products! A small launch to see how many people respond to your niche or not. If your audience does not react well, it doesn’t mean the niche isn’t effective. You might just have to iron out a few details in your campaigns.
While you’re here, why not take your marketing health check right now to see where your strengths are and discover new room for growth and opportunities.
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