A successful method of making money from the web is niche marketing. Niche marketing involves finding the bare bones of the market and focusing in on specifics or niches. Once this process has taken place, solutions can then be made to figure out those specifics.
One institution that uses niche markets are banks. Most people think that banks only deal with the financial side of the market but they deal with a variety of niches that cover a wide base.
A regular bank includes products/services like:
- Investment products
- Home loans
- Vehicle financing
- Individual loans
- Financial planning
Each area focuses on a certain groups of people or, also know as niche markets: investment dealing for those involved in investing, vehicle financing for those interested in purchasing a vehicle, home loans for real estate gurus, financial planning for those who need guidance and loans for those needing financial help.
Is it possible to believe that a bank that encompasses all of these areas can contend with every other bank? Obviously, it is incredibly hard for a bank to take over all the niches but they can make a stand in a specific niche!
For example, the four main banks in South Africa, ABSA, Nedbank, First National Bank and Standard Bank, each of them have their own specialties. ABSA is most often visit for home loans, Nedbank is often highest on the list for business bank, First National Bank is popular for their innovation, and Standard Bank specializes in stock trading.
No matter what the business, whomever is in the lead usually, has increased overall revenue. If this business takes the time to also put effort into other niche groups but doesn’t particularly control them, it provides them with a way to enhance their main income. This can also be applied to online businesses.
Even in electronic commerce is niche marketing important. For example, VirtualBank specializes in Internet financial services. As we all know, Google is the leader in the search engine niche and News24 delights in knowing they are the first news source in South Africa.
Alas, it isn’t as easy as just picking a niche market and selling your service or product. It will take a lot more work to dominate a market.
When you decide to commit, just remember not to put too much on your plate.
Of course, you aren’t going to try to compete against Amazon in general book sales but maybe you can beat them in a specific book group.
Try to find a niche that is right for you and provides the lowest risk possible to advance your business from the start. Here are a few reasons for this:
1. If you are seeking to lead a market, then look for a niche market. They are not as competitive as general markets.
2. You can use niche marketing to help keep your costs down. Don’t market your niche product or service in a larger, unspecified market. Stick with smaller advertising campaigns focused on your niche.
3. You can use a niche market to take transform your hobby into an actually income.
If the area you search comes up with a lot of hits in Google’s Keyword Tool then it should probably create a successful niche market for you.
Using a niche market to set up your business is smart but making niche marketing a winner relies on three rules:
1. Figure out how you can best serve your clients. You must make your product meet your niche’s specific need. It wouldn’t be helpful to create a business about mattress when your entire market just wants the covers.
2. Figure out how to speak with the clients. Try to induce their emotions so you can really learn what they want.
Why do your clients want a mattress cover? Why is it important to them? If they don’t like a specific thing you need to figure this out and address it.
3. Learn about your competitors. How can you make your business different from all the rest in your market? Do your own research about what others offer and try to discuss the areas that they are missing. Make your product/service better.
If you for some reason aren’t able to find any other businesses in your niche then it probably is a warning sign. It either means there isn’t interest in that market for what you are offering or you need to become an entrepreneur and un-tap it yourself.
Just remember, it is important to discuss with your clients what they really want in a product or service. Try out what they say and see if it works for you. This concept is incredibly important to niche marketing.