The fact of the matter is, over 80% of the businesses fail within a year. The main reason for this is choosing to target certain markets that's far to broad or overly-competitive (or saturated.) It is important to take the time to conduct some research, both internally and externally, and choose a niche market that's less saturated and offers an adequate number of potential customers.
One of the ways to figure out the right market for your business to start a business is by deeply narrowing the subsets of target markets you have in mind. This concept is popularly known as "micro marketing" or "niche marketing."
This practice is a good way to evade the competition from big-box companies that seem to dominate most general market spaces. It is also easier to understand your micro market and target customers if you were to concentrate on a specific niche.
In essence, you and your marketing team need to be creative, when it comes to carving a specific niche. The idea of niche marketing is to be a big fish in small lake rather than being a small fish in a big lake. If you still don't have a clue about what we are talking, let's take an example.
Example: Carving a Niche in the "Truck Scales" Market
Take for instance the truck scales market. The market for truck scales is extremely broad with respect to the vast types of truck scales and thus corresponding markets. However profitable the overall market may seem, it could be extremely challenging to establish your company as an reputable authority figure in the general "truck scales" market.To carve a specific niche in the truck scales market, think about all the possible subsets and specific types of truck scales that you can offer. There's are high demand for portable truck scales, onboard truck scales, axle scales for trucks, truck scales for shipping/retail, as well as truck scales for industrial applications, such as mining.
This is just the tip of the iceberg. You can further narrow some these subsets in the truck scale industry by thinking more creatively. People could be looking specifically for portable truck scale rentals or industrial truck scales for mining which need payload management systems to accompany the scale.
The marketing team needs to really think out of the box. Finding out a specific niche is not that hard. Do your research on the Internet and you can surely find a lot of specific niches in order to effectively compete and establish yourself as one of the players in a niche market.
Keep in mind that some market niches don't necessarily exist. They have to be created by means of identifying the requirements and needs of the people. By better understanding the wants and demands of people you understand your target audience, you can pinpoint various specific niche markets to position your business.
