Know What it Takes to Create a Solid Niche Marketing Strategy

by Ranny Watson Blogger

As of the first quarter of the year 2020, more than 80,000 businesses in the United States were less than two years old. Now simply combine this with those 31.7 million small businesses contending for customers, and the industry competition seems even more savage. So how can one possibly create a niche marketing strategy that stands out? Diving into a specific demographic is the only way to distinguish your business in this competitive market.

Basically, a local marketing strategy for your business niche is created to attract a pool of customers on a smaller scale. It will focus on the small groups instead of the whole market helping you stand out, attracting potential customers, and boosting profitability.

With so many brands in various industries and sectors creating a perfect inbound marketing strategy, now is the time to shape one for your business. Below we have shared a quick rundown that explains how to do it well. Take a look.

Step 1: Know Your Unique Selling Theory

Well, this always begins with developing a marketing strategy. Yes, things may seem quite impossible if you don't know anything about the scope. Well, this is important because it is mandatory to understand your unique sales theory, which simply means what you do differently that will make customers choose you over others. For instance, it can be that you may have developed a tool that makes sending emails easier or ceramic dishware that can't be found anywhere else or even software that has made accounting and bookkeeping easier than ever. Whatever that unique selling proposition is, you need to locate it first and then plot things accordingly.

Step 2: Understand Your Niche Market

Even many popular entrepreneurs like Brian Chesky, founder of Airbnb, said, "Build something that 100 people are going to love, not something 1 million people like." Putting this in simple words, it is wiser to reach a small group of people who appreciate your company instead of having a large community that considers things are okay.

This aspect will definitely take some thought and time, but it is worth the effort. By putting an edge on the right niche market, you will get more loyal customers who will gladly favour you more than the competitors.

A popular example of this could be Thirdlove, an underwear apparel brand that emphasizes body diversity and sizing options; they have successfully built a happy community of 327,000 followers on Instagram.

Step 3: Invest Time in Research

If your customer pool spends most of its time scrolling through Instagram or Facebook, it won't make any sense to develop a demographic marketing strategy around email campaigns. Instead, you need to conduct market research, which will help you know more about your target audience and what influences their purchase decisions in the end. Once you have the answers to all these aspects, you will get the best returns for your marketing dollars.

Step 4: Hear out Your Customers' Needs

Every individual customer will have their preferences and problems that need to be solved from time to time. However, if you listen to what they say regarding any of your services/products, you can actively find opportunities to bridge the gaps.

For instance, David Barnett, Founder and CEO of Popsockets engineered a perfect solution for continually tangled headphones. What began as two buttons glued to the other side of the phone case turned into the brand, Popsockets.

As a result, the operations were carried at full tilt and brought in revenue of more than $160 million in a couple of years after its establishment in the industry.

Step 5: Establish a Unique Brand Identity

Once you are done outlining your buyers, reaching your customers, understanding their needs, and knowing your unique selling point, you are just left with one major thing. That is none other than building a brand identity. Bear in mind that a well-defined brand will always allow you to develop a niche marketing strategy that is authentic to you and your customers. Yes, we actually meant to create something emotional, practical, independent, and encouraging enough.

A very successful example could be Etsy's independent artists’ marketplace, which attracted more than 138 million buyers. Even in one of their TV commercials, which was just full of emotional marketing tactics, the brand showed support to thousands of small businesses to trade through their platform. Sounds amazing, right?

Ultimately, building a strategy for marketing that encourages growth is much more than just having those weekly promotional newsletters and social media ads. So, make sure to find enough time to learn more about your audience and let your brand stand out. Why not have a strategy for your business that targets the right pool of buyers and hits your annual growth goals?