Corporate Business

Tips to identifying and creating niche markets

Identifying, analyzing and creating the niche markets before entering the niche markets are vital to achieving success in any product segments. But when we refer to niche markets, it must be clear to us what exactly is a niche market. "Niche market is a specific market where there are defined users of product or focussed groups within larger target segments who share the common interests, occupation or lifestyles."

There are a number of products existing in the market suited to different groups of people and you should know which are the profitable to your business. And so, the groups who share common interests are most likely the potential prospects for your products and only thing remains to be done is identifying and motivating them to purchase and use your products.

Identification of the niche market is a mind-numbing exercise for sure, but the benefits accrued from it are enormous and rewarding. A demographic audience essentially requires to be broken down into smaller sub-segments and then they must be visualized in order to create viable niche markets. For example, if you are going to sell shoes, to what age-group will you sell them. If you want to target kids for shoes, in what age-group they are. If you are selling woman wear to mothers, is it for mothers-to-be or for the already existing mothers. Again, the target needs to be defined.

You need to then initiate the marketing campaign which should include conducting promotional offers to your targeted segment as well as aggressive advertising to be done in magazines meant for mothers/kids whichever is your niche segment.

What you should do identify or create the niche market?

If you have been into business from quite some time, you probably know, where you have failed and where you have been successful. So, you can divide the market into different sub-segments according to your product category. You should be able to clearly identify who can buy your products.

If this is for the first time, then in order to identify, you need to do some research before you actually sell products to specific audience. As a naïve marketer, you should undertake the following steps in order to capture the niche markets.

• Undertake a market survey: Study the demography. Assess the customer profiles and watch your competitors. Determine how you will compete with them.

· Create a unique product: Every product is manufactured and sold after an initial survey. Once you know what product appeals to an audience, you should make that product. The product also should have benefits different from your competitors so that your customer likes in the first use or glance. If you creating entirely a new and innovative product which is to be launched in the market for the first time, put your product on a test period. After some time , you will know which class of customers most like your product.

• Make your products tailor-made: After the product has undergone market tests, you know what your product lacks or how better a product can be. Make alterations in your product and it should be customized to suit specific needs. Doing so will further define your target audience. In essence, it will be limited to few selected users.

• Enable "product theme": You should create a theme for your product which means your product can be based on a theme of "low pricing" suitable and accessible only to price-conscious users. Or your product can be emphasized on it's quality. For example, health drinks emphasize on the benefits it provides, often to school-going children or old-aged. HP targets the premium class segment by selling high-priced all-in-one machines having monitors, printers, scanners etc.

• Be different form your competitors: It always happens that people follow successful and the rich. Do not follow your competitors style if you want to be ahead. Your competitors also might follow you when you are winning the market place. In such situation, be innovative and introduce new concepts for your products.

Having done all of the above, you constantly need to keep a tab on your niche groups as the tastes and preferences may change with new technology and new innovations taking place in the market.

Article Source: ArticlesBase.com - Market Survey, Demography, Identifying Niche Markets, Niche Markets, Customer Profile, Product Theme, Tailor-made Products