So you’ve got a great idea to start an online business. You are ready to start selling online with ShopFactory all-in-one e-Commerce solution.
There is one more step that you will need to take: defining your niche market. The reason this is important is because you will need to know who you will be selling your services or products to in order to appropriately and successfully market it.
Take a look at any successful business, whether B2B or B2C, and you’ll see that they have clearly defined their marketing niche.
Many prospective online shop owners may start out thinking they 'can be all things to all people' when they first start out. Many will find within the first few months that this is a recipe for a disaster.
Business models taking this 'do-everything attitude' will risk burnout, exhaustion, confusion, and failure. By creating a specific niche both you and your buyers will know exactly what to expect.
Rather than 'finding' your marketing niche, which suggests that it is something that is ready-made or pre-packaged, you can actually ‘create’ one to give your online store the greatest chance of success.
Define your marketing niche by following these 6 simple steps:
The best business is going to come from a stirring up your own passion. Take a look at what you have succeeded at in your past and take a look at the skills implicit in each of your successes. Identify patterns and take inventory of your skills. This will reveal your priorities and business focus. Another way to do this is to look at your failures, and find important lessons from which you can learn. By taking this intrinsic approach, you will be able to better narrow down your niche market based upon your past experiences. Everyone feels good when they perform well in the area of their natural talents. This is where you have a competitive advantage to perform better than anyone else.
Narrowing down what specifically you want to sell to your buyers will help you to define your marketing niche. A retail Cosmetics and Beauty store is not a niche, but a field in which you will work in. An example of a niche within this field would be “At-Home Teeth Whitening”. Narrow your field down to be more specific.
There are several ways to find out trends in the industry of which you’d like to sell in.
One way to get started is to...
Google it! If you want to start selling in the “At-Home Teeth Whitening” industry, try Googling “Teeth Whitening trends.” You’ll be surprised how this quick and easy action can teach you a lot about the industry. Look for trends on social media. Social media is where your audience lives, and it gives you insight into what they want and love. Be aware that trending topics are not necessarily trends. They are simply just a topic that everyone is talking about at a certain time.
Rather than choosing a broad category, narrow your target buyer down with the following specifications: gender, ethnicity, age, geographical location, hobbies, familial status, political affiliations, occupation, income, etc. If you are appealing to another business, focus on its geographic location, revenue, size, or other industry-related information. By narrowing down your ideal Buyer you’ll have a better idea on how you can market specifically to future Buyers.
Successful brands have differentiating factors that set them apart from their competitors. Take a look at what really makes your product different from other products out there on the market. Does it solve a problem that no other product solves? Is there a need in your ideal Buyers’ life that is not being fulfilled? Present unique attributes that set you apart from your competitors.
By this point, you should be getting a pretty good idea of what you will be selling and to whom you will be selling. This is the stage where you should start to shape your product, your passions, and your buyers’ needs to create something new and different. Essentially, you will be defining your niche. Take a circular process to steps 1 through 5 by refining your niche until you have a good sense of to whom you want to sell, what you want to sell, and how you want to sell it.
While it is important to be specific when defining your niche, you will not want to box yourself into a corner with your brand definition. Remember that going through the cycle is an important process and that your brand definition can be refined as you learn new things about your niche.
It is also worth noting - new business who define and start out with niche marketing do better as start-up businesses. Once you have succeeded at the first step - you can then build on top of that success more quickly when expanding and adding to your business.