A niche market is a small segment of the total population which is the targeted market of a particular product. Niche marketing aims at directing marketing efforts towards this specific niche, and becoming a specialist who caters to the needs of this market.
At times, the niche does not exist, it has to be created. This is done by creating needs for a particular product or service which a particular set of people may require.
Let's take an example of a website iimiitmatrimony.com. There are various matrimonial websites catering to a mass and providing filtering options on the basis of caste, income, region, religion, height, weight, etc. An IIM graduate, who is a member of this website, and is looking for a like-minded match for himself, has to choose his soulmate out of Lakhs of ladies, and 99% of them don't match his requirements. iimiitmatrimony.com is a website, which has identified this segment, it's specific requirements, and is focused on catering to iim and iit graduates only. The website has created a demand for itself and members of this segment want to get themselves registered because it caters to them only and no one else. And by registering here, they will get options, who are from a similar educational background, similar requirements and mindsets.
Niche market may not necessarily be the elite segment, or the rich people, it just refers to a small and specific community of people.
Businesses all over the world have recognised the importance of niche marketing. Even big companies are coming up with products that target a niche. Eg Tata is targeting a niche segment of green tea drinkers under the Tetley brand.
Like in any other business, Niche marketing is becoming popular in the financial advisory segment as well. There is a plethora of financial advisors selling similar products. In order to stand out of the crowd, the IFA has to decide if he wants to be a small fish in a big pond or a shark in a small pond?
Due to the ever increasing competition, it is important for the financial advisor to differentiate himself from others. Not only is niche marketing crucial for the success of an advisor, it makes the life of the advisor easy. The advisor has to concentrate on a particular set of people with similar demographics and life goals. He will be familiar with the common issues being faced by them, and thus he can use similar marketing strategies and offer them a specific set of specialised products and services. It will bring down the cost of the advisor, he'll be able to build his brand in the niche and he'll be viewed as a specialist in the niche.
Word of mouth is the advisor's biggest source of new clients. It is generally seen that when an advisor is able to satisfy a customer, he gets references from him and in turn is able to build a significant client base in his circle.
Lets say you have a number of clients working in MNCs in Pune. Since you have advised some people from this segment, you must be acquainted with some basic facts about them: that they are a set of people in the age group of 25-35 years; that they have a long list of goals to achieve; they have a regular and increasing flow of income but generally do not have a huge saving; and that they are generally extravagant in their lifestyle. This segment will not be able to invest a lump sum amount and would be more comfortable if you align one SIP for each goal. You will be able to get further references in this segment because of your existing clientele. If you bank upon your experience and knowledge and brush your skills further in this sector, you would become a specialist for this segment of people. You would become an expert advisor for the Pune MNC employees. Similarly, you can pick any niche which you feel, you are good at. You can be an expert for doctors, or teachers, or HNIs, or Army officers, or any other group which you have developed some experience in or are peculiarly interested in.
Catering to a niche is useful for the client as well. The client has to invest, he has a specific set of issues, goals and aspirations, and you are an advisor who caters to a segment, which he also belongs to. You are aware of this segment's whereabouts, it's issues and aspirations and people from this segment know you well and trust your services. So, you will be the client's obvious choice since you are a specialist in his segment. Niche marketing creates an equilibrium between the client's demands and advisor's supply solutions.
The key to success is to focus on a limited number of people and then to develop superb expertise with those people. How to find your niche is what you want to know. Though there is no fixed process of finding a niche, but we can generalize some steps which may be helpful to you in finding your niche:
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Find the target set of people: You must figure out whom you want to serve. Try to identify your target customer base on the basis of geography, educational background, social community, profession, etc. This will depend on the kind of people you can understand and relate to, for the simple reason that you practically can't please everybody.
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Define your USP: Since you are not trying to please the whole world, you have to define why you are trying to please the specific niche. Your USP lies in your experience, your passion, and the things that you are good at. Your virtues will define why you are the most suitable person for a particular segment of people. Your uniqueness will not let your client's go anywhere else.
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Customer's View: Get the customer's viewpoint; you should know exactly what does the client require. You shall interview or engage in casual conversations with your prospective customers and try to gain maximum knowledge on their custom needs, goals and problems faced.
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Incorporate: Incorporate the insights of these conversations and your USP to arrive at your specialised strategies and product offerings and you are good to go and enter the niche market.
Catering to a niche is not a one time task. Your style and strategies need to be evolving with the changing needs of the customers. You have to keep adding the finishing touches as and when required. Since people tend to lose grip whenever something new hits the market, try keeping the grip intact by keeping the novelty of your offerings and your charisma unbroken and always presenting something new to appeal to the eyes of the audience.
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