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Written by Diep Tran
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Friday, 25 May 2007 |
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Word Count: 652 Internet Home Business Ideas: Niche Marketing
According to Wikipdia, the free encyclopedia, a “niche market is a focused,
targetable portion (subset) of a market sector”.
Using this definition, niche marketing is the process of finding and serving
market segments, that are too small for big companies to serve them profitably
defined by the volume of sales. The key to niche marketing is to find and
develop a service or product that is in high demand for the small group of
potential customers, but the number of these customers is still high enough, so
that you can be potentially profitable nonetheless. The service or product
should be selected based on the unmet customer need. To maintain a profitable
volume of sales, niche marketers are reliant on the loyalty of customers. To
increase the customer loyalty it is important to focus on the quality of the
product or service provided, this will generate customer satisfaction, trust in
the product or service, and consequently sales.
How to find a niche that is profitable?
The most important and difficult task to do when starting niche marketing is
doing site research. As with any business it is much easier to start with
something that you are interested in and excited about. Since this is an
internet home business, and most traffic (85%) to the websites will be
determined by the big three search engines Google, Yahoo and MSN, it is a good
place to start your research from. This research should focus on the following
three aspects, as described above for a niche market:
High demand: Using tools like Inventory Overture (http://inventory.overture.com)
you will be able to find out whether the product you have in mind is wanted.
Type in your niche market term describing your product and you will see how many
searches for this term and other related terms were done in the past month. The
number of searches per month will depend on the niche market, but in general
look for terms that are not higher than 20,000 a month.
Low supply: Take the selected terms and type in these terms in the search
engines. The results will give you an estimation how much competition there is
or how many sites are available on the internet for these niche marketing terms.
Ideally there should be a good balance between the number of searches and
results a month. As a thumb rule, you should look for terms that have less than
1,000,000 searches per month for Google, 400,000 for Yahoo and 250,000 for MSN.
Based on the balance between demand and supply you could reduce the number of
terms and narrow down your market niche.
Profitability potential: Once you have the reduced list of niche market terms,
you also need to know much advertisers would like to pay for each term. Use for
example Google Adwords, and select for the last time based on the results terms
with the highest pay per click.
With these definitive niche market terms in mind, you could be able to optimize
your website for two or three of terms, by adding relevant content to your site,
concentrating around these terms. Because the chosen terms (and related product)
have been selected based on three criteria which are typical for a niche market
and your research conducted ‘life’ with the three big search engines, you have
already all the conditions to be successful in niche marketing. In internet
marketing in general, most are aiming for the big fish with a lot of
competition. In contrast with niche marketing, you are looking for small fishes.
But if you know where they are by conducting sound research, the catch might be
greater and more frequently.
Diep Tran is working in the pharmaceutical industry, is Internet marketer, and webmaster of Internet Home Business Opportunities. To Make Money Online, Visit: http://www.internet-wealth.biz. |
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