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On the surface, niche marketing is identifying a narrow market, and selling a product to that market. For example, in the wider market of “Health and Beauty”, you could target a niche, or sub market, such as “Nail Care”. In the “Nail Care” niche you can sell all manner of nail care products, and provide free advice on the subject, etc. Sounds easy, doesn’t it? Actually, it is pretty easy, if you do it right. There are two basic approaches that you can take: 1) the “Me Too!” approach, and 2) the “Solve a Problem” approach.

The “Me Too” approach has you look at other marketers in the niche, and emulating (copying) their work. When I say copying, I don’t mean thieving their content and whatnot, I mean following their business and marketing model. You will be competing with them, head to head. In a small niche, against an established force, this could be challenging. The pro’s of this model are that you don’t have to re-invent the wheel. Others have gone before you, tried everything, and found out what works. All you have to do is follow in their footsteps. On the downside, they also got there before you, and have (probably) established themselves as an authority in the field. You are attempting to invade their territory.

The “Solve a Problem” approach comes at the niche from a different angle. You research the niche, and watch what people are asking, and what problems and difficulties they are having. If you see the same complaint or question repeated over and over again, you have identified an opportunity. If you can definitively solve the problem, you have a niche product that people will buy. What do I mean by definitively? There’s a good chance that if you are seeing the same question over and over again, the odds are that the provided solution(s) are not sufficient for the niche’s needs. This is especially true if you see discussion continuing long after the “solution” has been delivered. A definitive solution or product is one that removes the need for further discussion.

The pro’s of “Solve a Problem” are pretty straight forward: you have, create, or invent a product that has a proven need. Your market breaks down your door in a mad rush, because you have the solution to their problem. You dominate the market. On the con side of things, you have to acquire or create the product. This means either paying somebody to do it for you, or putting in the time, effort and creativity yourself. This can be a daunting task in and of itself.

Whichever way you choose to go, remember two things: first, research is the key. Think like a lawyer, knowing the answer to every question before somebody asks him or her. Similarly, if you have done your research, you will know everything that you need to know before you ever enter the market. The second thing to remember, and this is important, is that you are solving a problem. It may not be a problem that you have ever considered before, but the solution to that problem is important to your customers.

In summary, to identify a profitable niche, do your research. Identify an unsolved or recurring problem. Step 2, provide a solution. Assuming that your solution is a good one, then step 3 is to tell people in the niche about your solution. Make it available to the market, and if you have a definitive “conversation stopper” of a product, then the market will buy from you.

Technorati Tags: Niche Marketing, problem solving