How To Create A Niche? What Are The 3 Types Of The Customer Base?

Professionals must understand several marketplace concepts whenever they want to make the most out of a particular market. For instance, niche, submarkets, industry, market environment, position, and competition level. Also, they must understand competitors, target customer zone, etc. There are plenty of segments that one needs a hold of before defining the market out of which the most important one is how to create a niche.

Before launching a business or improvising any marketing or sales strategy there are many things that need to fall into the right place. This is where most businesses take the hit. Because not only do they enter a market niche that is already overcrowded, but they fail to understand customers that will yield maximum results.

Therefore, businesses are either dethroned from their position or cannot meet the sales target set for the current and upcoming years. So to become successful after launching a product, businesses need to focus on two most important things-

• The niche and
• The customer base. 

So,  further ado, let’s look at how to create a niche and attract customers who will become loyal in the long run. 

What Is A Market Niche, And How Does It Work?

The first and foremost thing you must understand is what a market niche is. People often confuse the niche with that domain and end up targeting the wrong section of the market. So, a marketplace is that section of the industry that resonates with the respective business product or service. For example, e-commerce is a market, health is a market, retail is a market, and so on.

Each market is further divided into sub-markets. For example, in the e-commerce market, the subdivided markets will be grocery, electronics, clothing and apparel, accessories, and so on. Going forward with the clothing and apparel submarket of the leading e-commerce market, there will be different niches. For example, the clothing and apparel sub-market. It can be divided into niches like plus-size clothes, wedding gowns and dresses, athletic and sportswear, winter wear, formal apparel, and so on.

Business can be based on one or many niches that are already existing in the market. However, competitors often overcrowd these niches, leaving them with almost negligible to zero market share. However, if wish to enter such a marketplace, there will be hit with tons of bricks in terms of competition. And the chances of getting dethroned will increase by 10 folds. That’s why it’s much better to create a personal niche for a product or service in order to roll it out in the market.

Also Read: 5 Impactful Ways to Develop Product and Consumer Interest in the Market

Why Create A Niche, And How to Create a Niche?

Now that it’s understood how the markets, submarkets, and niches work, it’s time to understand why one should have a personal niche instead of focusing on existing ones. 

The following section comprised some of the significant benefits to enjoy for creating a personal niche:

1. It’s easy to control every parameter, from market share to position.
2. Be the sole owner of a personal or new niche, with no competition and competitors. The likeliness of getting dethroned from the created niche is slime.
3. Don’t have to worry about not getting enough market share because the niche won’t be overcrowded until and unless other businesses start considering and adopting your niche.
4. A personal niche will also help to establish specific ground rules for the business and others looking forward to entering the niche you created.

What Are The Types Of Customer Base?

Coming to the customer base can be divided into three types. Before targeting the audience or planning for which section of the audience to target for business, it is better to know about the three market bases. 

1. Die-hard customers are the ones who always stick to a particular brand and never intend to change anything. Even if another brand comes and claims to be more efficient and result-worthy.
2. Neutral customers are those who are associated with a particular brand, feel content, and have no plan to get inclined to another business for at least a couple of years. But, if customers do not get the expected experience, they can switch to any other brand anytime.
3. Frustrated customers are those who didn’t receive the expected experience from a particular brand and looking for something better. Once they discover that some other brand is offering exactly what they want, they won’t take another second to switch from the initial to the new brand.

Businesses can gain loyal customers by targeting the third type of customer base, the frustrated ones. Because they are already searching for a better product or service.

Also Read: 7 Free Types Of Lead Magnets That Convert Prospects Into Customers

Launch a Product with Perfect Knowledge 

This article has highlighted the categorical divisions of a market into submarkets and niches. Furthermore, the three different customer bases and which one to target to achieve maximum yield and loyalty. It is essential to understand the marketplace environment and what the customers are expecting from the business. 

Therefore, a lot goes around when it comes to launching any new product. Henceforth, taking up product management courses will help to analyze, strategize and evaluate the correct product roadmap. Enrolling in Emeritus online courses will help in achieving so. Find out the right program from the pool of courses.