Niche Marketing Explained – Understanding All About Niche Marketing

What exactly is niche marketing?

Niche marketing is marketing to a select group of potential customers inside a much larger customer base. This is often done because there is a need that is not being addressed by providers who target the larger customer base. In other words, there is a demand for something that isn’t being supplied. If you can satisfy that demand, you have a potential market waiting to pay you for what you can offer them.

The Internet Marketing niche has many sub-niches

For example, inside the target market of Internet marketing, there are many niches, including search engine marketing, PPC marketing, Google AdWords, article marketing, bum marketing, and more. Those who write eBooks on just Internet marketing don’t directly address these niches.

You could further refine those to include even more specific niche markets. For example, you could fill the niche market of PPC marketers who just use Google AdWords or just use Yahoo Search Marketing, etc.

As these niche markets have grown, so have their desire for information and resources that they can directly use for their businesses, which are not satisfied by those who just target the large Internet marketing market. Those businesses that primarily focus on article marketing are not going to be very interested in PPC marketing, just like those who primarily use Google AdWords are not going to be very interested in article marketing.

That’s why there are marketers who market directly to niches – they can better satisfy what those niche customers are asking for because those niche marketers directly address the problems facing the niche target markets.

The over saturation of a niche

Niche marketing has become one of the primary ways to market over the last few years because many are starting to realize that Internet marketing is becoming over saturated with Internet marketers and their products. This makes it much harder to earn profit from the large Internet marketing market. Those who are new to the Internet marketing world will have an even harder time breaking through into the Internet marketing market because there are many established Internet marketers who have very loyal customer bases that trust those specific marketers and their products.

New Internet marketers can better compete or even dominate a niche because there is little to no competition in that niche. The more you can target a specific niche, the better the chance you will have of carving out a profitable piece of that niche and/or even becoming the main provider to that niche. This is how new Internet marketers especially can make it big online.

Niches can be discovered in just about every market

Many Internet marketers make nice sums of income online by targeting different niches, some not even related to each other. They’ll do the necessary research to determine whether a profitable niche market exists for a product/service they can supply, select a domain name, build a website, and start marketing it to the niche target market.

However, niches don’t have to deal directly with marketing. Niches can be carved out of almost any possible market, whether it would be dogs, cats, plants, electronics, writing, cars, etc.

For instance, talking about electronics, you can have niches that involve computers, stereo systems, televisions, MP3 players, DVD players, etc. Furthermore, you can narrow those niches down even further; for computers, you could have desktops and laptops. You could break those down even further – with laptops, for instance, you could have whether they utilize Centrino technology or not, as well as what computer brand they use and what processor powers them.

You can also limit niches to other factors involving the target market, such as age, occupation, income, place of residence, etc.

For instance, you can target teenagers who want MP3 players. You can make your offer more appealing to that market by including free music downloads of the most popular young artists today when they purchase the MP3 player from you.

Research your way to discover new niches

As you can see, virtually any market can be broken down into smaller markets, or niches, by way of the product, the target market, or both. The key is to finding out what needs are not being satisfied by companies and websites that are already out there and then providing a valuable offer that that niche target market will be eager to purchase. With an almost unlimited number of niche markets, and more appearing every day, niche marketing will likely not become saturated anytime soon.

Direct Mail For Fundraising

In order to use direct mail for fund-raising purposes, you need to understand the concept of both fund-raising and mail. In simple terms fund-raising means raising money for a particular cause or project. For many non profit organizations in existence today, fund-raising is a substantial way of raising money for their cause. This cause can be varied and can range from helping religious groups to assisting political organizations. Some non profits groups also organize events to raise money in order to support various humanitarian causes and social issues.

Now that we have the basic understanding of fund-raising, let us see what direct mail is all about. It is the most common means of direct marketing. It helps in reaching out to a large number of people quickly. The concept of using this technique for fund raising is many centuries old. Example of such work can be found as early as the 12th century in countries like Great Britain and Japan. In countries like the United States, the practice of mail for fund-raising started after the Second World War. This was the time when charitable organizations throughout the US were looking for options to increase their fund-raising supporters.

Once computers came into being, the use of direct mail for fund-raising took immense proportions in the United States. Prior to the advent of computers, the fund-raising groups had to maintain the details of their members and donors manually. This made the entire task very tedious and time consuming. The computer came as a boon to these organizations since they could now maintain all the records on the computer. It also became easy to update and add new details which before computers, was a Herculean task.

The growth of non profit groups in the United States led to the growth in the concept of direct mail for fund-raising. Today, through this technique of fund-raising, any American can learn about the charities of his/her choice. The task of contributing towards their favorite charity group, today, is a piece of cake.

In today’s world, using direct mail for fund-raising is a concept that many non profit organizations throughout the world follow. It is the easiest and most convenient way to convey information to all their participants. This technique helps all types of organizations to reach out to people and gain new customers or members. It helps the organizations inform its existing customers about the up-coming fund-raising events. It also makes the task of reaching out to its members and asking them to upgrade their contributions easy. Although it costs little higher than other forms of communication, but Direct mail has become quite an effective and result-oriented technique which is widely used for fund-raising throughout the globe.

Writing a Marketing Letter

Let’s start with what makes up a marketing letter, before discussing how to write one. It consists of a headline, a promise of a benefit, a call to action, and a postscript. Headlines should grab your reader’s attention and include a benefit. Following the headline’s promise of a benefit is an elaboration of how the prospect can benefit from your offer/solution. Next, comes a call to action that gently directs him or her to take the desired action. Last but not least, a good sales letter includes a postscript. Research reveals that this improves response rates.

That’s it in a nutshell. Now, let’s look at how to write a marketing letter that includes these elements.

Marketing Letters that Get Read Have Attention-Grabbing Headlines

Letters typically don’t have headlines, but many do have subject lines. Treat this as your headline. Your letter must have a headline that stands out. You’re competing with hundreds of direct mail letters flooding everyone’s inbox. So your sales letter has to arrest your reader’s attention. Otherwise, it’ll get lost in the sea of direct mail letters.

So how do you do that? I follow a simple formula that works time and time again, the 4 U’s.

· Useful: Your headline must be useful, otherwise why would your prospect read your letter.

· Urgent: Show the importance of acting now – not later – to improve response rates.

· Ultra-specific: You letter must be relevant. The more specificity, the better.

· Unique: Differentiate your offer from the competition, starting with the headline.

A solid headline includes at least three out of these four elements. You’ll find this may take some effort. But top copywriters spend more time crafting their headline that they do on the rest of the letter. After all, if your sales letter isn’t sorted and picked-up from the bulk mail, it won’t be read. That’s why you need to start with an “attention-grabber”.

Oh, if your letter has sub-heads, apply the 4U’s to them as well. They help keep your reader engaged.

Winning Marketing Letters Hold Your Reader’s Attention

Once you have your reader’s attention, you have to keep it. You have to keep her engaged. To do that your lead must tie your offer directly to your headline. It’s a logical link that runs from the headline to the offer.

What will hold your reader’s interest? You must address “What’s in it for me” or “WIIFM”. This ensures usefulness and specificity. That’s two of the 4 U’s.

Show your prospect (don’t tell him) how your offer benefits him. Show your reader using your solution to his benefit. Set a scene in which the prospect sees himself using your solution to make his job faster, easier, better. Doing that ensures you address urgency and uniqueness – the remaining 4 U’s.

With a solid lead, you can now write the rest of your letter as you would any other letter. One caveat: don’t forget to cover the emotional aspects of your offer. Besides writing to the rational brain, you also have to write to the “lizard” brain – the one that reacts and makes decisions based on instinct. It’s a fact that we make decisions emotionally and only then justify them rationally.

Effective Marketing Letters Have a Call to Action

You’d be surprised how many direct mail letters drop the ball here. They fail to have a clear, concise and relevant call to action. One way to avoid this is to start your letter with the call to action in mind. What do you want your prospect to do after reading your letter? Call you? Email you? Return a postcard requesting a white paper?

Focus only on the desired action you want your prospect to take. Keep the offer simple and focus on the essentials. Don’t clutter it with anything else. When you write a call to action, ensure it is clear, concise and engaging.

You also need to make it easy for your prospect to take action. First, keep it short. Aim for brevity to keep your prospect engaged without distraction. Additionally, give her a variety of ways to respond: mail, email, fax, telephone, website landing page. You get the picture.

Marketing Letters with a Postscript (P.S.) Generate Higher Responses

This one’s not tough to do. You should include a P.S. or even a P.S. and a P.P.S. Readers tend to want to get to the bottom line. Consequently, they’ll find themselves reading the P.S. because they expect a nutshell of valuable information here. So give it to them.

Your P.S. can do several things.

· Entice a response – Offer a free giveaway to entice a response.

· Reinforce urgency – Emphasize urgency with a limited time offer.

· Remove or reduce risk – Highlight a rock-solid guarantee associated with your product/service.

· Underscore uniqueness – Explain your key point of differentiation that separates you from the competition.

Successful Marketing Letters Focus on Your Prospect

You can write each one of these elements separately, at different times, but your letter must follow this sequence. It’s a logical flow, but it also emphasizes the potential customer rather than your company.

It begins with your headline, and the 4 U’s help keep you on track with that. Notice how the lead focuses on the prospect. You write about WIIFM. And the call to action is customer-focused as well, as you gently direct him to take a desired action. Then it wraps up with a P.S. that makes it easy for your prospect to take the desired action.

These techniques have developed and perfected over many years. You’ll see improved response rates when you follow these steps.