It's not uncommon for a small business to have a scattergun approach to their marketing, hoping that if you fire the marketing gun rapidly and broadly enough you stand a higher chance of hitting something. It also satisfy your desire to feel as if you’re ‘doing whatever you can to make this thing fly’.
Before we go on let’s define what we mean by a market niche. - A niche is a tightly defined portion of a subcategory.
For example think of the health and beauty category. This is a very wide category. A beauty salon can offer a wide variety of services including tanning, waxing, facials, massage, cellulite treatment and much more. If, for example, we take one of these subcategories—let’s say cellulite treatment, this could be our niche. However, we could tighten it up even further by focusing on cellulite treatment for women who’ve just had a baby. This is a tightly defined niche. Now you may be thinking why on earth would we want to limit our market so much? Here’s why:
- You have a limited amount of money. If you focus too broadly, your marketing message will become diluted and weak.
- The other critical factor is relevance. The goal of your ad is for your prospects to say, “Hey that’s for me.”
Targeting a tight niche allows you to become a big fish in a small pond. It allows you to dominate a category or geography in a way that is impossible by being general.
The type of niches that you want to go after are “an inch wide and a mile deep.” An inch wide meaning it is a very highly targeted subsection of a category. A mile deep meaning there’s a lot of people looking for a solution to that specific problem.
Once you dominate one niche, you can expand your business by finding another profitable and highly targeted niche, then dominate that one also.