An interesting discussion was started on Twitter as to what is niche.  I have seen niche used to refer to a group of consumers with shared characteristics.  I have also seen niche described as a specialized service(s); for example, internet marketing.

Ten years ago, when I was in college, niche was described as a space in the market where the advertiser’s product or service will fit.  Merriam-Webster online dictionary definition is a place, employment, status, or activity for which a person or thing is best fitted.  Although marketing and advertising concepts and theories remain the same, the methods of delivery of advertising messages have changed.

These changes apparently have changed or gave new meaning to the word “niche” where now it can refer to a specialized service.  Join the discussion by posting your comment below as to what is niche to you.  I look forward to reading your thoughts.

As an entrepreneur and/or small business owner, one of the decisions you make when starting your business is which portion of the market is going to be your niche. In order to choose your niche ask yourself, “where in the market will my products or services fit?” Has a new market been created, because of changes in technology or society, which has a potential demand that is not being met? Once you have answered these questions, you have chosen your niche.

In your niche, you will find people with shared characteristics (market segment). The factors (characteristics) that determine market segments are geographic, demographic, behavioral, and psychographic (attitudinal). Your advertising message and marketing strategy will be based on these factors.

It’s ironic how people are more alike than different. The aforementioned factors will affect how a group of people will behave. We tend to be creatures of habit, which causes us to be “sitting ducks” for advertisers and marketers. We leave clues, based on our needs, wants, and mental files, that tell where we live, how we shop, what we buy, and how we spend our leisure time. The same holds true for the market segment you choose to target with your products and/or services. They will have similar needs or wants and behave in similar ways.

In the market place, there is an area or subset where your products and/or services will fit (niche). In the market place, there is a group of clients who can use your products/or services (market segment). As an entrepreneur and/or small business owner with limited advertising and marketing budget, it is important to choose a niche, as well as a segment, in the market.

I came across an interesting blog, which contains 10 marketing tips for entrepreneurs. The author points out how market segments are shifting and desiring the same things out of life, especially more time for themselves. Nowadays, different socio-economic segments have access to products and services that were in the past only for the affluent market. This fact affects our marketing strategies. One example of this shift is cell phones. When cell phones were introduced to the market, the non-affluent market could not afford to purchase them. Now everyone has a cell phone, including adolescents and teenagers. Here is an excerpt from the blog:

“As an entrepreneur, what can you learn from the luxury travel industry? Actually, quite a lot! By examining the trends that are taking place in the luxury travel market you can see ideas and business segments that are emerging amongst some of the world’s most affluent shoppers.

Why? These trends, which may start out in the luxury market have a habit over time of making their way into other demographic markets as well. Like luxury travelers, other consumers realize that not only is time money, but money is time. And we’re willing to spend our money on time.

Let’s take a look at some of the trends and see how you, as an entrepreneur, can use them to help grow your business.”

Please visit http://homebizblogger.com/2008/03/12/entrepreneurs-what-every-business-can-learn-from-the-luxury-travel-industry/ to read the entire post.

Rita J. Cartwright, Owner
RJ’s Word Processing Services
Your Business Success Is Our Success
http://rjswordprocessing.com
866-651-3073

I came across this article, “Local Business Search 2.0” written by Marshall Tallman, which has websites listed for those of us who are targeting local businesses. Here is an excerpt from the article containing the websites information.

“1. Craigslist – The general public has fallen in love with this free classifieds website. Craigslist provides a great medium for buying, selling, finding jobs, and even finding dates in a local geographic communities. Craigslist receives millions of visits every day and provides its service free of charge, other than posts for employer job openings. A section on Cragslist is dedicated to ‘Services’ and many small and home based businesses use this to promote their business. Users are allowed to post information promoting their business once every 48 hours, although many businesses find ways to repost within this timeframe. The postings will stay online for up to 7 days, but they get the most attention when they are at the top of the list or right after they are posted. The main benefit of Craigslist is how quickly people can reach a number of interested consumers in their area. Some shortcomings of Craigslist are that business listings expire, and to reach customers businesses must re-list several times a day to generate more sales leads. Also, there is no quality assurance with Craigslist. There is no easy way to check the legitimacy or quality of the businesses that are listed on Craigslist.

2. MoreWorld – MoreWorld takes great web 2.0 technology and delivers it to small businesses, home based businesses, and their customers in an attractive and easy to use package. Businesses enjoy free registration and highly customizable company accounts. This includes a free business website, a complete menu of products and services and free inclusion in MoreWorld’s local search. Businesses may even use MoreWorld to manage a list of their customers and employees and send out group emails. MoreWorld also provides a comprehensive local search for companies, products and services. Users can also browse companies by category. Search results provide pricing details and customer feedback information. The most exciting part is that when a user views more details on a company, they get far more information than is available in traditional yellow pages. They get a detailed description of the company by the company, including a detailed description of the company’s products, services and prices. The greatest drawback to MoreWorld is that they only have information on company’s who have registered with the site.

3. Yelp – Yelp has found success by integrating social networking with a site designed for rating local businesses. Yelp provides a fun, easy and addictive platform for users to create and submit reviews on many types of local businesses. Further, all of the services available on Yelp are free, other than the sponsored search results for businesses. Users interested in finding a product or service may search or browse listings by distance and star rating as well as several other search areas. The website also provides a forum for users to discuss local businesses, events and other things in their area. All of the information on this site is managed and updated by Yelp users. All reviews and information change requests require the approval of a moderator to avoid biased reviews and misinformation. Yelp provides a great way to find detailed reviews on local businesses. The main drawbacks on yelp are the reliability of reviews and the lack of any business side interface. Also check out InsiderPages for another great site based on user reviews.

4. ServiceMagic – ServiceMagic delivers an interesting new approach to the local business front. ServiceMagic provides an attractive and easy to use platform that helps connect consumers to the contractor for their job. Service magic has a simple project description form for people to complete. Once the form is submitted, ServiceMagic matches them with a handful of qualified contractors, and the communications begin. Users may read ratings on different service providers as well as a detailed description provided by the company on themselves. Users seem very happy with the amount of time ServiceMagic saves them in finding the right business for their job. While ServiceMagic is great for finding a contractor it is limited to the types of businesses it can help you find. Another problem is that businesses must pay to be on service magic, so the best business for a job may not be available to the user because that company is not interested in paying. The final drawback is that there is no search feature for users, causing people to be limited to viewing only the companies that ServiceMagic allows.

5. Angie’s List – Angie’s List is another site that aggregates consumer reviews of local businesses, much like Yelp. Angie’s List separates itself from other similar sites in that they charge for membership. This includes charging both to see and write reviews. Angie’s List prides itself on their level of user participation and the credibility of their information. A major benefit to Angie’s list is that companies can’t pay to be on the list, they must be reviewed by a member in order to be listed. Major drawbacks to Angie’s list are that it is not free and that there is no interface for businesses.”

Rita J. Cartwright, Owner
RJ’s Word Processing Services
Your Business Success Is Our Success
http://rjswordprocessing.com
866-651-3073

Virtual Assistants (VAs) who are business owners do more than just type. We are also entrepreneurs, in addition to being small business owners. Virtual Assistant Networking Association (VANA) defines VAs as “A Virtual Assistant (substitute VA or Virtual Associate) works independently at an arm’s length, via the Internet, utilizing the latest technologies, to provide immediate professional support, services and skills to busy entrepreneurs and business managers.” International Virtual Assistant Association (IVAA) definition is “A Virtual Assistant (VA) is an independent entrepreneur providing administrative, creative and/or technical services. Utilizing advanced technological modes of communication and data delivery, a professional VA assists clients in his/her area of expertise from his/her own office on a contractual basis.”

As small business owners, we face the same issues and concerns as our clients. VAs are dedicated to helping their clients grow their businesses, while at the same time expanding his/her own company. It is a win-win situation. In addition to providing services, we are faced with the daily operations of a small business. These operations include everything from bookkeeping to marketing. In fact, VAs are hiring their own virtual assistants to help with the administrative tasks. We understand our clients’ business needs, because we are them. We do more than just type.

Rita J. Cartwright, Owner
RJ’s Word Processing Services
http://www.rjswordprocessing.com

When creating an advertising message, it is important that you know who you are talking to. Do you know who your target audience is? If you don’t know, you are not maximizing your advertising and/or marketing efforts.

A member of the target audience influences the purchasing decision and/or the person who makes the purchase. The person who makes the purchase is also a member of the target market. For example, when McDonald’s creates an advertising message, it is directed at their target audience, as well as their target market. Children are the target audience and their parents are the target market. Therefore, McDonald’s strategy is to target both groups.

Do you know who you are talking to?

Rita J. Cartwright, Owner
RJ’s Word Processing Services
Your Business Success Is Our Success

http://www.rjswordprocessing.com

866-651-3073