WARNING: What most people call “niche marketing” is NOT Niche Marketing.
A “niche market” officially defined:
A niche market is a PROFITABLE MARKET SEGMENT that a company is able to DOMINATE AND SUSTAIN because the company has successfully built BARRIERS TO ENTRY around that market segment.
Notice that finding and then targeting a profitable market segment, though important (due to the fact that “when you try to be everything to everybody you wind up satisfying nobody”) is only part of the process of niche marketing.
In order to truly have a niche, the company – your company – must also erect barriers to entry around that narrowly defined market segment so that it can dominate (gain 100% or close to 100% market share) AND THEN sustain (defend that market share for the maximum amount of time) that particular market segment.
The reason I emphasize barriers to entry is because many so-called marketing experts tend to confuse the term “market segment” with the term “market niche.” They well meaning-ly but very wrongly use the term “niche marketing” when they really are just only talking about “target marketing.”
Remember: A market niche is a market segment with barriers to entry built around it. If your company is serving a market segment but it does not have barriers to entry around that particular market segment, it does not have niche. It is NOT doing niche marketing. It is ONLY doing target marketing.
The aim of niche marketer is not just to target and occupy a market segment, it is to dominate and own that segment. To take a war analogy, if you are a conqueror, it would be meaningless if your army took over a territory only to lose that territory back to the enemy, to invaders, barbarians, or neighboring kingdoms and tribes.
Niche marketing is much like being a conqueror. One must conquer. Then one must protect what one has conquered.
In order to maximize one’s success, one must not just target a market segment but must also protect one’s position in that market segment. To do the latter, one must erect barriers to entry that would discourage and/or prevent the “evil barbarians” (substitute product providers, competitors from next door niches/segments, suppliers that might forward integrate, buyers that might backward integrate, etc.) from breaking and entering into the territory that one has acquired.
A company that successfully occupies a market segment but fails to defend its position in that market segment has only achieved temporary victory. And if its costs of entering that segment is substantial, but it has not been able to erect barriers to entry that would allow it to defend that position, then all it has done is to have opened up that market segment for its competitors to enter.
In this eBook, which should take you less than 32 minutes to finish reading, you will learn a practical blueprint that will help you to correctly execute the ENTIRE niche marketing process, starting with segmenting and targeting, and then finishing the job with the solid erection of entry barriers around that particular segment.