In marketing, a niche is defined as particular (often small) segment of a market which a specific product or service often serves.
How can we identify a niche?
First of all, let me start by saying that not all specialized market segments are profitable or offer great returns in investment. The key is to identify which specialized market segments offer great rewards in return for answering a particular need.
Secondly, when you decide to focus on a certain niche there will become a time when you will become the “industry expert”. Continually researching, studying and learning about the subject are very important. People will turn to you for advice and ask your opinion because of the expertise you have gained.
Lastly, never hesitate to ask the opinion of other “experts” and challenge the prevailing assumptions regarding the market needs you have decided to solve. Innovation and improving the products and services you have can keep and increase your loyal customers.
So, let’s us go back to the question; how can we identify a niche?
The important thing you should determine is to find out which customers you would like to serve. There are so many sport shops or sports gear and apparel stores in the Philippines. However, there is only one store focused on serving runners. The store is aptly called; Runnr.
Runnr houses various running gears and equipment from different brands.
If you are still not sure the market you want to serve, just walk around the neighborhood and find a need that you think you can fill in.
Heavenly Chocolates is a café and dessert place located in close proximity of other restaurants, bistros and cafes in Tomas Morato. What sets this apart from the other cafes in the area is that it specializes in chocolates. They serve chocolates from their country of origin such as Ecuador, Ivory Coast and Madagascar. They also conduct Chocolate Appreciation workshops, which is one their unique selling points.
If you are providing a service, you can find your niche by highlighting your expertise in a particular field. This is what the Unleash Team did. They conduct training programs “unleashing the highest potential in people towards success, happiness and significance” formed and created with the Filipino culture in mind.
There are other ways of identifying and profiting from niche marketing. The important thing are being able to identify with our prospective customers and knowing that we can deliver our promises.
