Understanding and Using Niche Marketing - Internet Marketing Australia

We hear buzz words like "niche marketing" thrown around all the time, but we rarely know exactly what they mean. Well, according to our friend Daniel Webster, this is what niche marketing means: A niche is a special area of demand for a product or service, and marketing is the opportunity to buy or sell. Combine the two and you wind up with: the chance to buy or sell a specialized product or service that is in demand.

That's not saying much, especially in the marketing industry. All it means is that a business is selling their wares to a group of people who are interested in what they are selling.

Big corporations really appreciate niche marketing because it is cost effective. Why waste money advertising a product to a market that doesn't want it?

Niche marketing is popular with big business because it stretches their advertising budget. It's much more cost effective for a company to advertise in a specialized market because their return on investment will be higher than if they had put all of their money in advertising to a broader, more generalized market.

When a business sells a very particular service or product, it makes sense for them to customize their advertising to focus on the customers that have the greatest need for whatever they are selling.

For example, say you wrote an e-book called "Learning How to Drive in California." It would make no sense to advertise this book outside of the State of California. The people who would want to buy this book live in California, so they are your niche market. That is the smartest place to spend your advertising dollars.

The use of niche marketing to reach consumers that have the most need and desire for your products and services is a no-brainer. Buzz words aside, just call it the common sense way to sell.