Niche Marketing That Works
It’s a data-driven world, and Internet pros are just living in it. Those truly thriving in this new era are using big data to refine audience targets to reach the most responsive segments. This is why marketing smaller and smarter, is so appealing today to brands of all sizes.
How Niche Marketing Works
Niche marketing represents a shift in marketing tactics from the general to the specific. An effective niche-marketing plan will be hyper-focused on satisfying a particular need of the prospective consumer base. A niche market could be a creative new product that fills a market void, or it could just be a fresh spin on a classic product. For example, say a wheat farm has been in a family for generations and sells its bread products to national grocery store chains. A farm employee discovers that its Buckwheat grain can be part of a gluten-free diet. With the current prevalence of Celiac disease (gluten intolerance), the farm begins producing gluten-free, Buckwheat bread and markets it to people with this very specific need. This niche marketing highlights the farm’s innovation and tangible worth. This can not only make the brand more competitive, but its marketing messages should also foster a wordof- mouth environment (as minimal gluten-free breads are available), which can lower marketing costs.
Implementing an Effective “Niche” Strategy
A successful niche marketing strategy will also serve as an
authoritative voice in the market. As a company develops
a product, it must be aware of the interests and desires of
the niche market in order to connect with them.
Utilizing data is the surest way to develop an understanding
of a niche market. Let’s go back to the farm. By
gathering data on those with Celiac disease (e.g. age group
and gender most likely to have it) and who purchases
gluten-free products (e.g. moms for their children, Californians,
etc.), the farm can market to an even smaller audience.
In turn, it can optimize the display ads they deliver,
the social media posts they share and/or the terminology
they use in email campaigns to address these specifics.
Identifying groups to target is the primary motivation
for studying data. Different types of targeting are
more effective for various markets, so concentrating on
the appropriate targeting style will generate a higher
rate of response. For instance, a company might engage
in whole human targeting, which means that it takes
into consideration occupation, demographic, personality,
social affiliations and interests. Alternatively,
the marketers might find that literal targeting
is more productive for them, meaning
that they market their product to obvious clients
(e.g. gluten-free bread to those with Celiac disease).
For a traditional marketing specialist, the transition
to relying heavily on data can be a challenge. Many are
prone to following their instincts. In many cases, this approach
is fruitful, but without data to back it up, the marketing
strategy developed in this fashion is likely to lose
potential clients it never even knew it had. To create the
most profitable niche marketing campaigns, it is essential
for professionals to increase their use of data analysis.
A recent survey by Infogroup Targeting Solutions and
Yesmail Interactive shows that only 11 percent of marketers
are focusing on data. At this rate, robotic algorithms
will overtake marketers in just a few short years.
However, data cannot run word-of-mouth promotions
on its own, which is an essential element for niche markets.
Marketers must create messages that foster environments
where word-of-mouth can occur.
One example of productive word-of-mouth marketing
is AHI Travel. The niche travel agency is listed with alumni
associations and provides an alternative take on traveling
that is highly focused on immersion with people and culture,
instead of just tourist attractions. The founder’s innovative
idea to target alumni expanded his consumer base
and initiated a word-of-mouth marketing strategy that continues
to grow.
What marketers should learn from this example is that
the most effective niche marketing campaign will include
unusual tactics that connect with its consumer base on a
personal level (e.g. the school they graduated from), as well
as the insight gleaned from data analysis (e.g. the median
salary of particular school’s alumni or travel destinations
that are popular with certain groups). In order to avoid becoming
obsolete, marketers must bring to the table a winning
combination of data evaluation and usage, as well as
demand-driven products that inspire word-of-mouth sharing.
Together, these tools will be able to produce highly
profitable niche marketing campaigns that will continue
to grow as the niche market expands.
About the Author: Amie Marse is the founder of Content Equals Money


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