Niche marketing is a marketing tactic deployed to target a specific market segment which is unique. Niche market is often created by identifying what a customer wants and this can be done if the company knows what the customer needs and then tries to deliver a better solution to a problem which was not presented by other firms. A niche market does not mean a small market, but it involves specific target audience with a specialized offering. By doing so, the company becomes a market leader and it becomes impossible for other firms to enter that particular segment.
Identify the Niche for your B2B business
Company growth vision - Business plan to be made for short term and long term aligning with Marketing Plan for future growth. Marketing Plan includes all details where we want our company to be placed in the market and should be prepared during initial days of company and updated regularly in line with market updates.
Target Top or bottom line - Niche marketing can helps in increasing Top or bottom line based on our selection criteria. You may target a high profitable or high volume segment based on growth path you want to move
Product Prioritisation - You need to do segmentation of the products and services you offer currently and also consider the diversification which is in your pipeline.
Customer Prioritisation - Understanding customers holds the key for success in any business. Serving all customers/ industries may create chaos leading to dissatisfaction everywhere, serve the right match of customers to your business to reach your goals
Evaluate the Niche identified
After identifying the Niche for your business you need to evaluate it through help of SWOT (Strength|Weakness|Opportunities|Threats) analysis and ask below questions,
Do I have the capability to serve this market?
Why is my business suited to serve this market?
Will I need to learn a new area?
Do I need resources to serve this market & how much will I need to invest?
How many people make up this niche market?
What are they willing to pay for product like mine?
Is customer price-sensitive?
What advantages do competitor have?
Continuous evolution is foundation stone to next step
As you have moved to creating unique space, it doesn’t mean you can’t think about expansion or ways to improve what you’re offering. It’s crucial that you do what you do well, but don’t discount the possibilities of opening up your product line or serving new target markets.
However, while it’s a good idea to consider expansion, it’s just as important to think about whether doing so is viable? Can you afford to take a chance on a new product line? What about test marketing an existing product or service to a new demographic? Experimentation can lead to valuable new opportunities, but only do so if you can afford to conduct a thorough evaluation of your new ideas without compromising the quality of your existing products and the standard of your service.