Aaron Ross , author of the book Hypergrowth, goes further. For him, the path to success is “conquering a market niche”. But what does that mean?
Basically, your goal is to connect with a consumer who has a specific desire, for which your business offers a plausible solution.
In other words, it means focusing on solving only the problems of your target consumers, instead of working with a broader market, such as American stores, Ponto Frio or Uber.
By implementing the first option, you, as an entrepreneur, begin a cause and effect connection, which can lead your company to progress.
Would you like to bring these benefits to your company?
Read this article until the end and find market niches with little competition.
What is a niche market?
In short, niche market means segmentation strategy, that is, a specific segment in which your business can focus and obtain an above-average level of knowledge, becoming a reference in the sector.
This way, a highly competitive market is avoided, taking advantage of all the benefits of market segmentation.
By discovering a market niche to become an expert in the subject, your company begins to operate in a more personalized manner.
In other words, marketing strategies speak to a india business fax list more specific audience, not the population in general.
In this context, qualified leads arrive for the sales team.
Furthermore, the customer service team , experienced in terms of consumer needs, becomes more capable of solving problems more quickly.
The product team, in turn, works to create tools that address the pain points of this same audience.
To better illustrate what a niche market would be, see our example below.
Here, the company does not focus on all types of women, but rather on those who want to rejuvenate their skin , that is, those who have more mature skin.
Source: Brazilian Academy of Professionals and E-commerce Agency (Apage)
Additionally, we have put together a video that explains the difference between a market segment and a market niche. Click play and watch:
Why is it important to do market segmentation?
Ready to learn the benefits of finding your niche market?
Here are the main ones:
1- Less Competition
Let's start by inviting you to make a proposal: imagine a syrup for children , one that treats little ones' coughs.
Could you tell me how many brands make a syrup that you know? I bet you could easily think of at least 2 brands, couldn't you?
Now, if we think about a syrup , which is a cough fluidifier and bronchodilator, made from the dry extract of Hedera helix L. leaves.
Would the brands you first thought of meet this consumer’s needs?
Possibly not!
Therefore, I would research other brands and would be willing to spend more with companies that personalize their service and products, according to the CX TRENDS 2022 report by Zendesk.
On the other hand, brands that serve a larger audience, those that sell simple syrups, could compete for the same consumer with large companies, including those that are not specialists in a particular product.
2- More audience engagement
When your brand focuses on a specific niche, these consumers won't depend on many reasons to follow your work.
This results in a more interested audience, whether in ads, social media posts or blogs. But why does this happen? Simple!
Your business will be showing that it knows and understands the needs of these consumers, like no other brand has ever understood.
Soon, these customers will follow, like, interact and share this content, generating engagement.
Which brings more social proof, that is: the more involvement, the more it will show that you are a reference in your market niche.
3- Customer qualification
Not only because of the low competition, but precisely because your business works with a more specific audience. With a restricted audience, you can segment your service and give more attention.
This makes your potential customer more qualified to accept your offer, since you understand their pain points.
An example of this is the case of the Nespresso coffee machine. It chose not to sell its capsules in supermarkets and instead provides personalized service to coffee lovers.
Furthermore, the brand sells different cups and other accessories to keep its consumers in the sales cycle.
4- Strengthening the brand
Ultimately, when your business meets a specific need, your brand will naturally be remembered for that.
You must remember the example of the syrup made from the dry extract of Hedera helix L leaves, right?
So, the probability of a manufacturing company's brand name being mentioned in a group of parents is huge.
As a result, it ends up becoming a reference for that niche and naturally begins to be recommended by those who understand the subject.
In this way, the popular word-of-mouth marketing is put into practice .
In fact, we have selected a video from Sebrae SP that teaches you how to do word-of-mouth marketing in the digital environment. Press play and watch:
What are the types of market niches?
Once we understand what market niches are and their benefits, we will present the types of segmentation that exist in the market. They are:
Geographic segmentation: focuses on the company's location, country, state and municipality. Here, it is necessary to study the competitors that operate in the region to build a competitive edge;
Demographic segmentation: focuses on the age, gender, religion, income or educational background of the audience in order to create habits and purchasing power of the individual. For example, sanitary pad brands;
Psychographic segmentation: analyzes the lifestyle, personal and personalized goals of the audience. Brands focused on the fitness world fit into this class;
Behavioral segmentation: the audience's consumption habits and responses to products are evaluated. An example of this is a brand targeting a vegan audience.
