Is a niche market a good alternative to increasing competition? How to reach customers with a niche product and how to promote it effectively?
- 1 What is a niche product?
- 2 How do you find a niche?
- 3 Before you start a promotion, research the market
- 4 Expert knowledge and experience
- 5 Influencer outreach
- 6 Local market opportunities
- 7 Exclusivity and airtightness
What is a niche product?
Niche products or services tend to be perceived as "specialized," "rare," "limited availability." In fact, we are talking about products intended for a narrow, precisely defined audience. A niche is a place in the market that has not yet been developed, but has some potential.
How do you find a niche?
A sensible approach to creating - and later promoting - niche products/services is to have a strong sensitivity to the changing needs of customers. The ideal "ground" for a niche product may be some unsolved problem or challenge in the context of a well-defined industry. Niches are created where a new, as yet unconscious or "undeveloped" customer need arises.
A decade ago, such a slowly expanding niche was, for example. Vegan food - today it can be said that this is a market that is even saturated with products and service providers.
Before you start a promotion, research the market
Customer needs are important in every industry, for niche industries they are key.
Niche marketing, in order to be effective, must emphasize maximum customization of message, content, style and communication channels. Marketing of "popular" industries builds this match through regular segmentation, testing and analytics. In the niche industry, segmentation is the main starting point for preparing promotion and sales strategies. The correct characterization of a prospect can determine the success or failure of a brand more than in the case of "generally available" products.
Competition in the market is inevitable, but instead of seeing it solely as a threat, it is worth looking at it as a source of valuable information. Analyzing what competitors are offering can provide key insights into potential gaps in the market.
1. study of competitors' offerings:
Browsing websites, product or service catalogs of competitors gives you an idea of what products or services are currently available on the market. Are there any areas that seem to be overlooked?
2. analysis of competitor customer reviews:
Reading reviews and customer feedback from competitors can provide insight into what customers like and what frustrates them. This can identify areas where competitors are failing to meet customer expectations.
3. identify technology gaps:
Are competitors using the latest technology? Are there cutting-edge solutions that could improve the quality of your product or service, but are not yet used by your competitors?
4. pricing strategy analysis:
Competitor price comparisons can help identify if there is an opportunity to offer products or services at a lower price while maintaining quality, or if there is demand for premium products at a higher price.
5 Study of distribution channels:
Are competitors using all available distribution channels? Maybe there are untapped channels to reach new customer segments.
Expert knowledge and experience
Building an expert image is one of the most effective methods of promoting a product/service in niche industries. Promotional activities you can undertake include:
- Providing expert materials - recordings, training, content,
- Building a community around a topic or around a brand - a fanpage, a social media topic group, a discussion forum, a blog, a YouTube channel, etc..,
- Paid or free counseling,
- providing bonus materials,
- Participation in industry conferences, trade shows, events,
- Cooperation with industry specialists - presentations, webinars, training.
Thanks to the immense popularity of social media, you really have a wide range of opportunities to promote an "unusual" service or product. It is worth remembering that the position of an expert is built long, consistently and very laboriously.
Launching an industry "novelty" requires really creative methods of promotion.
Note that in this case you don't know the customer's needs, but you anticipate that your product will interest them. In order to be successful, you need to "build a need" and introduce a product to be promoted by, for example, an expert/influencer of a particular industry. Such a method of promotion is usually chosen when launching a new cosmetic or fashion novelty. Promotion by the "influencer marketing" method gives you the confidence that the product will reach a precise group of customers who trust their favorite "expert" and make a purchase by imitating his choices.
Promoting a niche product with the help of an influencer can include:
- Sponsored post on a specialized blog - review, test, ranking,
- A paid presentation or test of the product on social media,
- Video marketing (YouTube, TikTok, Instagram) - a video with product placement,
- Sponsoring prizes in the competition.
Local market opportunities
An excellent niche product can also apply to a well-defined local service market (agricultural, construction, technology). Promotion of certain niche products will require, among other things. Participation in industry local fairs and conferences.
Sometimes it will be necessary to build a consistent image as a local "activist" or "expert" in a particular field. "Developed" niche in the local market will also require precise selection of phrases for positioning - if the product/service is advertised online.
Niche marketing in the local market may include, but is not limited to:
- Sponsored articles in the local press,
- Sponsorship of local events - industry events, training courses, conferences, expert conventions,
- Participation in industry trade shows,
- Actively building a local community centered around a theme (beekeeping, tourism, photography), service (yoga, wellness) or product (dietary supplements, cosmetics).
Exclusivity and airtightness
Real or apparent restriction of access - present among others. in marketing premium services - can also work well in niche markets.
The determinant of exclusivity is not necessarily the price, but, for example, an advertising message that creates a product "for connoisseurs." Building an airtight, loyal community can start with a blog or a closed social media group.
- Among other things, it is effectively promoted in this way. specialized training. First, a social media group is formed, centered around a topic (freelancing, photography, virtual assistance). Then an "expert" begins to act among the group, gradually building up his authority.
- When the community grows, the expert carves out a segment of potential customers by creating a closed group, intended, for example, for those interested in buying a course. A sense of exclusivity is built by limited access time, face-to-face consultation opportunities and "members-only" bonuses.
Regardless of the type of niche product, it is worth remembering that the focus of the promotion is not the product, but the customer's needs and expectations.