Targeting Niche Markets

Many companies are now focusing on niche markets, which can help them to avoid competition and potentially gain a monopoly.

One example of a company with a successful niche market is Sennheiser. They developed their "Sennheiser HD1" headphones specifically for DJs, and these headphones have become the industry standard in this area because of their superior sound quality. Another example is Pottery Barn Kids, an upscale furniture retailer that has been able to successfully sell many more products than most stores by exclusively catering to the child market by producing high-quality children's furniture and bedding at affordable prices.

However, executing a successful niche strategy requires careful consideration before you choose your target market. If you do not choose your market carefully, you may risk your company's reputation and overall well-being. Start by identifying a primary niche to focus on, then consider adding secondary niches.

While secondary niches can help broaden the scope of your business and potentially increase sales numbers, they can also take focus away from the primary niche, which will hurt your efforts in the long run. Also, if you choose secondary targets that are too broad, such as "children" or "teens," you will be competing with other companies who are also selling to these age groups, reducing the uniqueness of your products and potentially affecting sales. Get more information about niche markets to ensure the success of your business.

Here are some questions you need to ask yourself when deciding on a niche market:

1. How many competitors are focusing on the same market that I am targeting?

2. Is there a market of consumers who have been overlooked by competitors or have needs that are not being met?

3. What products/services do I have that will be appealing to this target audience?

4. What products/services do my competitors offer that I do not?

5. Is this market large enough to sustain my business?

6. What are the needs of consumers within this market segment?

7. Do I have the resources to compete in this niche market?

Like other areas of business, conducting research about your niche will help you learn about the potential problems and benefits of entering a particular market. To find information about potential markets, you can use online searches, talk with people who have used your products or similar products in the past, talk with your suppliers regarding any trends they may be noticing and consider asking employees to bring new product ideas to you based on their experiences with consumers.

After you have researched your niche, think about the overall impact of the product or service on your target audience. You want to deliver a product that will be attractive to consumers within this market. For example, Pottery Barn Kids caters to parents who are concerned about providing a safe environment for their child's bedroom. They have created high quality, colorful children's furniture that complements other items in the parent's house and makes their child's room into a fun and inviting place to play.

After you choose your target market and develop basic strategies for entering the niche market, it is important to find ways to reach out directly to customers. This can include traditional marketing tactics, such as advertising and promotions, or it can include newer Internet-based methods.

A great example of a successful niche market is the DVD movie company "Blockbuster Video." The company is considered a market leader in its niche by providing individual stores that are ideal locations for teens to rent videos. This strategy has created a loyal customer base that Blockbuster has been able to continue to grow by providing additional products and services through its stores.

To learn more about niche markets and how you can enter them successfully, check out the sources below:

1. "How to Enter a Niche Market," eHow.com, http://www.ehow.com/how_6139016_enter-niche-market.html . (accessed on February 2, 2010).

2. "Niche Marketing," BusinessDictionary.com, http://www.businessdictionary.com/definition/niche-marketing . (accessed on February 2, 2010).

3. "Niche Marketing Strategy," Juggle Technology News, http://lifehackerhackr.com/2008/11/122406-niche-marketing-strategy . (accessed on February 2, 2010).

4. "Niche Market," Infoplease.com, http://www.infoplease.com/ipa/A0902279.html . (accessed on February 2, 2010).

5. "Niche Marketing: Entering a Niche Market," About.com, http://ehelp-center.about.com/cs/nichemarketing/a/niche_marketing_whats_it_wor .htm . (accessed on February 2, 2010).

6. "Picking a Niche: If You Build It, Will They Come?," Zen of Small Business, http://www.thezensmallbusiness.com/zenmarketing_nichesegmentation.html . (accessed on February 2, 2010).

7. "The Secret to Successful Niche Marketing," Entrepreneur, http://www.entrepreneur.com/article/198749 . (accessed on February 2, 2010).

8. "What Is a Niche Market?," Definition Investopedia, http://www.investopedia.com/terms/n/niche-market-definition.asp . (accessed on February 4, 2010).

9. "What is Niche Marketing?," Business.About.com, http://business.about.com/od/marketingstrategy/a/nichemarketing .htm . (accessed on February 2, 2010).

To learn more about business planning and strategizing, check out the links on the next page!

Chapter 23: Business Plan Templates

"It's not hard to make decisions when you know what your values are."- Oprah Winfrey

Business Plan Templates

In order to create a successful plan, you will need to choose a format that is suitable for your business needs and goals. If you go to a business plan template website and look at their choices, you will have a very difficult time figuring out what format is best for your situation. However, there are many good options available to you with the following business plans templates.

These documents are an excellent choice for many small businesses that do not require any fancy formatting or other features that can make it more difficult to complete. These templates usually contain the basics necessary to start or expand your business venture, including a market analysis and a financial plan. You can choose to customize these documents with extra information, such as sections that explain your product development process or your marketing strategies.

Conclusion

When creating a business plan, it is important to remember that one size does not fit all. If you do not have extensive experience in the industry you are planning on working in, it may be better to stick with a basic template so that the document will be easy to read and understand.

However, if you have unique ideas or strategic objectives for your business, you might want to go with a more complicated or interactive format. This will make sure that your audience understands exactly what is happening at every stage of your business.

Chapter 24: Business Plan Review Templates

"If there is only one thing I've learned from success, it's this: You can never go back and change what you have failed at.

Targeting Niche Markets

Targeting Niche Markets

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