Know Your Niche - The Key to Profitability - Internet Marketing Australia

You have the perfect product, you have your target audience in mind, and the marketing campaign is one of the best you've ever done, but your sales numbers are still too low. If any part of this sounds familiar, then the problem most likely comes from one thing; not knowing exactly who the people in your niche are.

Understanding your niche is vital to generating revenue. In fact, your degree of profitability is in direct proportion to how well you know your niche and the people in it. This may sound simplistic, but it's true: you will sell more of what people need when you know what they need.

The more specific and accurate your research into whom comprises your niche, the better. This is not the time for guess work. Yes, there may be some trial and error, and missteps along the way, but it's your business to have a firm grasp of type of people that make up your niche

Here's a "classic" example. Coca-Cola introduced a new formulation in the early 1980s. At that time Pepsi was becoming more of a threat, so they tried to broaden their appeal. That was a mistake. Why? They didn't fully understand their niche. The people who were choosing to drink Coca-Cola weren't looking for a new taste; they enjoyed what they were already drinking. Sales plummeted, and a short while later they brought back the old formula as Coca-Cola Classic.

 
Even the biggest corporations can make mistakes. Perhaps their research indicated changing the flavor to be more Pepsi-like would reduce the competition.