Mindsets

How To Identify Your Niche Market And Own It

Posted on Monday, October 10th, 2016 at 2:44 pm

Gone are the days when mass marketing, or simply touting a product’s merits, sufficed. What works now is relationship marketing. Customers need to know that a business understands them and that it can meet their needs. They want products that are tailored specifically to them.


A business can market either to individuals or to other businesses. Here are some questions to keep in mind when determining the ideal market niche.

  • Who has easy access to your products and services?
  • Who is not inundated with products or services that are similar to yours.
  • Who is willing to pay for your products or services?

Assembling a customer profile is the crucial next step. You can conduct a survey of your customers, look up ready made surveys on the internet and libraries, etc. The following basic information must be included:

  • Age
  • Gender
  • Profession
  • Educational level
  • Household income level
  • Marital status
  • Geographic location.


If you are targeting corporations, you can also ask the questions about:

  • Company size
  • Location of headquarters
  • Types of products and services provided
  • Annual revenue
  • Year founded

You might assemble a psycho graphic checklist to find out if the typical customer is one or more of the following:

  • Conservative
  • Liberal
  • Conformist
  • Environmental friendly
  • Socially conscious
  • Power wielding
  • Fun loving
  • Cutting edge
  • Trend follower
  • Fashion forward
  • Family oriented

You can also build the typical customer profile by asking the following questions:

  • How many family members are typically present in customers’ households?
  • What hobbies and sports do they usually enjoy?
  • What types of entertainment do they like?
  • What publications do they subscribe to?

If they are corporate customers, what characteristics fit them best?

  • Market Leader
  • Innovative or Cutting Edge
  • Liberal
  • Conservative
  • Environment friendly
  • Employee/family friendly
  • Fast growing/adopting new ideas
  • Stable/set in their ways

If you are dealing with a company, the following questions can also be asked:

  • What is the growth stage of the company? (start-up, growth, stable or in decline)
  • What is the type of workforce they employ?
  • What is the company’s culture?
  • What is their management style?
  • What trade associations do they belong to?
  • What publications do they subscribe to?

The conclusion of this exercise is to build a typical customer profile that will allow you to target your marketing efforts towards a single demographic. There may be different customer profiles and these will have to be kept in mind when devising a marketing plan. An example of a customer profile looks like this:

Company X, an upscale women’s clothing company, targets American women executives between the ages of 35 and 50, with an average household income of greater than $100,000 and who purchase work clothes at least twice per year. With this profile, you can target your marketing efforts in the places where this demographic is likely to be present and in the ways which they will find most appealing.

 

 

 

N. Boutamine | The Edge Blog

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