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Finding, Developing and Prospering From Niche Markets

(December 2006) posted on Fri Jan 05, 2007

Discover tips and techniques that can help you profit from untapped niche markets.

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By Mark A. Coudray

Niche markets are all about special-interest groups. To take advantage of a special-interest group, you need to know what group to target, how to find it, and what to do once you do discover it. You can target groups locally, regionally, or nationally, depending on your focus. Since most screen printers bring in less than $1,000,000 in annual sales, I'll keep the discussion focused on local and regional prospects.

Emotional attachment
The process of finding niche markets is really quite deliberate and direct. There's no real mystery to it. You'll have to do some research, ask the right questions, and know where to go to get the information you need. Let's start close to home. Take your own personal special interests, for example. These are things you enjoy doing. They're often hobbies or recreational in nature. A number of very important aspects become crystal clear when you think in these terms.

People are often emotionally connected to what they believe in. If you're really into bird watching, you know a lot about it. You know what birds to look for at any time of the year. You know which species are migrating and which ones are indigenous. You know where they'll be found and what you have to wear in order to remain hidden while viewing them. You know the behavioral characteristics of each species, what they like to eat, and where they gather. You collect all of this information in order to create the whole experience. We'll use this example throughout our discussion to illustrate the principles of niche marketing.

The people who buy products in a niche market realize the product and the value of the product are aimed specifically at them. The value to them is clear, and they reward the niche marketer with better profit margins because their emotional wants influence them to pay a higher price for goods and services. Psychologically speaking, you're satisfying the need of the market for recognition, and you're providing the communication vehicle they'll use to show the world exactly what's important to them.


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