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Niche Marketing - The Key to Success

Niche marketing is a term that has been around for about a decade or more in the marketing world.  Some may ask, though, “What is niche (nitch) marketing?”  According to www.dictionary.com, it is “marketing to a special area of demand for a product or service.”  In other words, it more defines what you are marketing to whom.

Niche marketing gives your business power as it more defines your market, product, and business strategy.  Before deciding on one particular niche, though, you need to ask yourself the following questions:

  1. Do I have a target audience with similar wants and/or needs?
  2. Is this market large enough to support me financially?
  3. Can I tailor my business to meet the needs of this target audience?
  4. Is this target audience currently under served?
  5. Can I reach my target audience cost effectively?
  6. Is your product life cycle long term?
To decide on a certain niche, your answer should be YES for all six questions.  If the answer is no to any of these questions, you will want to select a different niche to market and try the questions again.

Once you have found a niche that allows you to answer yes to all of the above questions, you still will want to prove your thesis before investing a lot of time, effort, and money into it.  You can do that by performing the following steps:

  1. Talk to your potential customers individually – Find out if your customers are interested in your more narrow market.  
  2. Conduct market research to verify your findings in step one - Go out into the community to see if others that currently do not buy from you would if you narrowed your focus.
If what you find out in your research and polling is positive, you should think seriously about going after your niche. After all, it is known that 80% of your revenue comes from 20% of your product.  Why not focus on that 20% to optimize your profits?

About Harvest Scents and Traders
Harvest Scents and Traders is based in the Fishers, Indiana suburb located on the northeast side of Indianapolis. Harvest Scents and Traders specializes in helping retailers become more profitable by providing uniquely designed wholesale home décor and giftware. Harvest Scents and Traders' customer base is made up of gift shops, chain stores, crafters, online retailers and general retailers.
Learn more about Harvest Scents and Traders.



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