If you've read my previous article, you'll know I spoke with you about youth marketing. But now I want to speak with you about another type of marketing: niche marketing.
What is niche marketing, you ask? Well, just sit back and relax and I'll be happy to tell you!
Defining niche marketing
First, let's break down the two words separately. Niche means, according to Wordnik, “A situation or activity specially suited to a person's interests, abilities, or nature.” And marketing, of course, means “The strategic functions involved in identifying and appealing to particular groups of consumers, often including activities such as advertising, branding, pricing, and sales.”
So, combining the two words together, we get something like this: “Strategic functions used in identifying and appealing to a particular group of consumers specially suited to their interests.” I think that about sums it up!
I'll give you an example that's close to my heart. Just yesterday, I saw an ad on YouTube by Way Back Arcades that offers customers a chance to purchase a Game PowerConsole stocked with over 23,000 arcade games. (That's a lot of games, by the way!) The reason why this would be considered niche marketing is because the product at hand would most likely appeal to those who enjoy playing retro video games that otherwise would not be seen in stores of for sale online digitally. The product appeals to a customer with a special and particular interest. Niche marketing at its finest!
Some of the known factors of niche marketing are:
- Geographic location
- Demographic (ex.: age, race, gender, etc.)
- Psychographic data (ex.: interests, personalities, attitudes, etc.)
- Quality level (ex.: necessity or luxury)
- Spending habits (ex.: premium, discount, wholesale, etc.)
Targeting a niche market makes it a lot easier for yourself or your team, as you only have to focus on a smaller audience as opposed to a wider one. Using the example I gave above, marketing to customers who are aficionados of retro games is a far clearer path than simply marketing for video games, an industry that rakes in billions of dollars every year!
Here's one way of looking at it: You could be a small fish in a big pond, or a big fish in a small pond. Both certainly have their unique challenges, but being a big fish in a small pond would be much easier, don't you agree?
The intention of niche marketing
Niche marketing is about constructing a concentrated customer base that is ferociously loyal to your brand. This can be accomplished by delivering the customers' unique needs and speaking their “language” that can be established through brand identity, appeal, and tone.
Don't just sell to the market—celebrate and engage with it too!
And you know what that means, don't you? Of course you do! Higher engagement equals higher conversion rates! Look no further than the recent rise of “micro-influencer marketing”, where influencers and brands with social followings of 3k-100k are considered to be more genuine, relatable, and trustworthy than those with broader audiences, precisely because they aim to understand their customers on a personal level. You should go out and do the same. Why? Because the whole design of niche marketing is to create long-term relationships with the customers. And that is vital for the survival of any brand, niche and otherwise.
Advantages of niche marketing
Benefits abound when refining your offering and targeting to a more specialized audience, including:
- Corresponding with people who come across your business or land on your site, read your blog post, visit your workshop, etc.
- Coming up with your brand's messaging, content, and tone.
- Focusing your marketing budget on more explicit, rather than broad, channels and spaces.
- Entering the market and getting traction on day one.
- Seeing a higher ROI (return on investment).
- Positioning yourself as an expert in your niche area.
- Having less competition to worry about, especially if you find and cater to a group that is underserved or undervalued.
Examples of niche marketing brands
You'll find niche brands in every corner of every industry, all around the world. Here are some that you may, or may not, have heard of:
1. Bee's Wrap
Bee's Wrap was founded by Sarah Kaeck in order to cut down on plastic usage and store food in a more sustainable fashion. The product in question is a food wrap made of organic cotton, beeswax, plant oil, and tree resin. This alternative to storing food is environmentally friendly and cost effective because it's long-lasting material can be used over and over again.
2. Square
Square is a startup company from western California. It was established “to give every business owner an easier way to take credit cards”. They have grown since then, and now they offer a variety of business tools and loans that “give every eligible business with a dream access to funding. From side gigs to sports stadiums, we're helping power businesses to succeed on their own terms.” They offer a wide set of tools that serve you, giving you the space you need to run your business the way you want it to.
3. Nomatic
Nomatic is a brand that creates minimalist luggage products like travel bags, backpacks, camera bags, notebooks and even wallets. It is perfect for nomads everywhere who rank functionality first, and who don't mind spending the extra change for it. (I personally like their backpacks. They are very sleek and stylish!)
4. Lune Croissanterie
Kate Reid founded Lune Croissanterie in 2012. They call themselves not a shop, nor a factory, but instead, “a celebration of the creation, complexity and ultimate enjoyment of a croissant.” (The layout of their website is quite exquisite if I do say so myself!). They have five locations scattered throughout Australia, and you even have the option to pre-order croissants online.
5. Glorious Gaming
Glorious is a gaming hardware company based in Dallas, Texas specializing in personal computer accessories such as mouses and keyboards, but they also sell desk toys, water bottles, and gift cards. The company was founded in 2014 and they are dedicated to creating high-quality items for reasonable prices, both to hardcore gamers and the more casual ones.
Niche marketing tips
Before beginning your marketing campaign, you'll have to obtain a complete understanding of the larger market that contains it. In other words, do your research, and lots of it! Talk to potential customers, attend conferences and other related events, analyze social media data; do that and more to get the information and insights you need.
Once you have that down pat, you'll have to get a crystal-clear understanding of the distinctions of your niche within the market.
Start by thinning out your target market. Use the factors we talked about earlier to help you. For example, if your business sells cat food, does it sell cat food to city dwellers? Does it sell cat food to young people living in the city? Does it sell cat food to young people who live in apartments in the city? I think you get the idea now. Just don't make it too specific, like selling cat food to city dwellers in apartments who like the color purple and like to go out to the park Thursday evenings. That's just taking things too far!
Once you've defined precisely your niche audience, offer them your brand's message. Try to do it in a single sentence to make it easy to remember, and easy to digest. Here are some examples:
- “Connecting those with beards to those who want to stroke beards.” (Bristlr)
- “A vegan lifestyle guide.” (Chickpea Magazine)
- “For rockstars, families & anyone who heart being treated like a VIP.” (Luxico)
- “I will teach you how to design knitting patterns.” (Sister Mountain)
Explain, in a simple and understandable manner, what you're here to do. Speak and/or write in a tone that will instantly connect with your target audience. Afterward, figure out where to spread your message. Send a newsletter or email if your audience occupies their inbox frequently. Create some flyers if your audience attends markets or other outside venues. Upload Instagram Stories if that is where your core audience resides. Conjure up some video material if they spend most of their time on Twitter or YouTube. Adapt to whatever medium you have to in order to begin engaging your future, potential customers.
The wonder of niche marketing is that it corresponds with those who are already set to love what you're doing. With the right messaging and the right media outlets, all you need to do is reach out to them with a product they will love and you'll soon be leading the pack!
