Market Nich Choosing
Updated: May 14, 2018
Before making any action, even your business website creation, you need to decide clearly – in what market niche you intend to run your online business and what products and services you’ll offer to the people.
Of course, there are some more and related issues, such as:
How to find money niche: What is the competition within a specific niche; What is the size of specific niche; How to perform business market niche evaluation; Which niche finder is better to use, etc. The correctness of the answers to these questions will largely predetermine the success of your online business in general.
So, let’s discuss what niche studies should be done before starting business online, and what kind of steps should be taken to survive in competition in the selected market niche. Of course, if the results of such studies are negative, then it is better to choose another niche for your business start.
So, here we discuss:
- How to Choose a Market Niche?
- Market Niche Choice on Desire
- Niche Choice on Potency
- Market Niche Study
- Simple Strategy for Niche Development
- Conclusion and Notes
1. How to Choose a Market Niche?
Online business niche is a segment (part) of the Internet market, which is focusing on specific products (or services). Market niches address specific needs of groups of people (or potential customers).
Niches are divided in sub-niches to meet the specific needs of customers. For example, furniture is in the mainstream of the market, but some people might be interested in kitchen furniture, some might be interested in bedroom furniture, and so on. The correct account of this understanding allows provide better services to people and they are more likely to buy.
The main competition between the marketers is concentrated in sub-niches, as sub-niches are easier to understand and statistically to describe. Determination of sub-niche with high demand for the product or service and with the low level of competition is considered as a big chance for any marketer.
Usually, the entire niche marketing process is divided into 6 Steps:
Choose a Niche.
Choosing a niche is often very confusing and often for the marketer there are two naturally occurring ways to choose an online business niche:
- Niche Choice on Desire
- Niche Choice on Potency
In more detail these cases are described below on this page.
Research Your Niche.
Take a look of what’s already been offered and what isn’t. Try to find something that has not offered by other marketers and also continuously improve the quality of your offers in the market niche.
Decide in Advance What Exactly to Sell.
If you wish to regularly make money in a market niche – you should know what to sell in it. If you have no ideas on this subject, look at your main competitors (their websites and offers). Also, develop own products for the niche, as this is a very effective way to strengthen the presence in the niche and to earn additional money from the own products sales.
Build Your Business Website.
Use reputable platform and website building software for your website construction and management. For example, WordPress is very acceptable for many cases. Try to maximize the use of automation tools and quality plugins for content monetization.
Test Before Going Live.
No need to hurry, all the pages, posts and offers should be carefully checked before publication, otherwise your website will not have a good reputation and the high attendance. Also, be attentive to comments, have your website reviewed and get feedback.
Market to your prospects and reap the reward. Regularly update your website content and offers, as niche marketing requires new things.
2. Market Niche Choice on Desire
Niche choice on desire – this is the case when you choose a market niche mainly in accordance with your wishes and knowledge on a particular subject.
For example, you are familiar with the book sale and you want to establish a business for online selling of children’s books. In this case you are pursuing the purpose to earn money and also to enjoy the work, which is important for you. It often occurs that many people identify the online business niche by their hobby, because they have the knowledge on the subject.
If you choose business niches this way, then you should clearly understand that you’ll take the competition such as it is at the present moment. So, when making business plans and business niche evaluation you should consider the existing level of competition and to provide measures to overcome it.
If this is your case, then you’ll not need any tools to find profitable niches, but you’ll still need a quality keyword tool for choosing the most profitable keywords within your niche to be competitive. Such keywords may be thousands and to search manually for good keywords is not effective.
The Keyword Researcher or Long Tail Pro keyword tools will be a very good choice! But if these tool are too costly for you, use the free option of SEMrush , as this tool gives out in a tabular form the analyzed data for your keyword (four key indicators, which is quite enough for decision making). Also, these tools may suggest you 8-10 relevant keywords to compare.
3. Niche Choice on Potency
Niche choice on potency – is when you choose a market niche mainly with the aim to earn good and even very good money, leaving to study the details of this niche for later. This is a serious business step, but you should understand that you’ll have to explore the subject of the niche (especially for products and services understanding). As a rule, this is not difficult to do, but it will take time for you. For example, by the main profession you are a teacher of chemistry and you found a niche for sale of children’s bicycles. In this case you have to seriously study the range of products and services to ensure the correct selection of products to advertise on your business website.
If you choose business niches this way, then you have the opportunity to choose niches with less competition. But you should not get involved too much in finding niches without any competition, as often the niches with no competition (or very little competition) are not money niches!
Regardless of how you choose a business niche you can’t get away from an understanding of its keywords, size, competition, and whether it is monetary. For answers to these and other questions you need before the final selection of a business niche to make the preliminary and more detailed study for the niche, as the business market niche evaluation is the last step of decision making.
4. Market Niche Study
So, how to find a market niche which is profitable? The answer is simple – by putting forward ideas and making their preliminary and final study.
Performance of a preliminary study of a business niche is a need, even if you feel it intuitively as good one. This work is not hard to do. This research will show you – should you or not continue to work with a niche?
So, in most cases, when evaluating a market niche the marketers are looking for the answer to the following key issues:
- Is It a Money Niche?
- What is the Niche Trend?
- What is the Niche Size?
- What is the Competition in the Niche?
a) Is It a Money Niche?
This means – to identify whether there are any Commercial Intent Keywords in the niche, as these words show the direct desire of people to buy products and services. High commercial intent keywords are like invitations from prospective customers. If they aren’t, then it’s going to be very difficult to make money in that niche.
So, how to find money niche?
There are several ways you can begin to identify high commercial intent keywords, regardless of what kind of business you run or your desired conversion outcomes. Let’s take a look at two of them.
Login to your Google AdWords Keyword Planner account and enter the product or service in the search box. After a moment, you’ll be presented with a graph of search volume trends and the “Keyword ideas” tab. This is where you’ll get a list of suggested keywords (and where you can identify the high commercial intent keywords you’re interested in).
Another way you can determine which keywords are driving conversions is by using Google Analytics. So, access Google Analytics and open the “AdWords Keywords” report from within the “Acquisition” section (Acquisition > AdWords > AdWords Keywords). The resulting table will show you your top-performing keywords, and how they relate to your conversion goals. This is very fast business market niche evaluation.
b) What is the Niche Trend?
Every marketer is committed to working in a niche that has a steady increase, or at least in a niche which doesn’t has sharp dips.
To evaluate the trend of a niche you can use Google Trends or Google Adwords Keyword Planner, they are free. These tools will show you the schedule for entered keyword (or phrase) and you will be able to make a decision. To work with rapidly die down niches is not desirable.
b) What is the Niche Size?
In the ideal case – it is the number of requests of people for the market niche keyword (or the set of relevant keywords), which all the search engines and the social media websites receive in a period of time (per day, per month, per year).
How do we know this number?
Very simple, it is enough to use data provided by Google, as it owns the lion’s part of the search market. So, click Google AdWords Keyword Planner and see it for your keyword.
d) What is the Competition in the Niche?
And finally, it is necessary to assess the competition in the niche. This will help you weigh your capabilities to win competition.
To perform this stage for the market niche study, follow the steps:
- Form the keywords set for your business niche. These words have as much as possible to describe the goods and services selected for the analysis of niche (for example: books for kids, kids books, interesting kids books, new kids books, etc.)
- Click Google and see what sort of content people are presenting on their websites for these keywords. The first 15-20 websites in the list – are the main competitors for you. Assess whether you can present the better content
- See the PR (page rank) of your competitors, just insert the page URL of a competitor in a Page Rank Calculator. If you plan to get traffic from search engines your web pages PR should not be lower than those of competitors
- Take a look on some competitors on Facebook, just insert your keyword in a search box and study the first 5-10 websites from the list.
It should be noted, that Google AdWords Keyword Planner allows you to compile a list of main keywords but it does not indicate what to do next (what to do with them). If a preliminary study of a niche turned out positive, you should go to Detailed Study for the Niche.
5. Simple Strategy for Niche Development
Read carefully this small paragraph, as it is very important.
When your business website launched, your web pages will have a low level of PR at search engines and you will not receive the necessary number of visitors. This is due to the fact that in the chosen niche there is a certain level of competition for the keywords and search engines serve traffic to the web pages with a higher level of PR than you pages have. Do not worry. This is natural, since you are new to the niche.
How to take this into account?
When you select the keywords to enter the market niche, start with the less competitive keywords, and those keywords, for which requests per day are in the range 3000 – 5000, and less. This will allow you to masterfully enter into your market niche, because you’ll be in a niche segment with less competition. As your website grows, you can gradually (not sharply, as search engines do not like it) move from the less competitive keywords for the more competitive, by improving existing web pages and by creating new web pages with new content.
To perform this work, it’s very convenient to use SEMrush (also it has a free option). After entering your keyword in a search box, you will get the necessary data in tabular and graphical form for your keyword and for the most relevant keywords, like:
- The average Number of Search Queries per month
- CPC (cost-per-click, USD)
Also, you’ll get the Related Keyword Report. All this data is sufficient for a decision making.
6. Conclusion and Notes
If to generalize on the issue, then you should complete three main stages:
Stage #1 – Finding Niche Market Keywords to Work With!
Stage #2 – Checking Out the Competitiveness of Your Keywords!
Stage #3 – Deciding on ‘No’, or ‘GO!’
So, niche marketing is about focusing your efforts on a particular market segment, or “niche” and creating a product or service that speaks directly to that niche. That’s why it works so well.
Also, you need to have clarity in matters:
Don’t wait too long. Once you decide on which niche to go after, and have taken the proper time and course of action to ensure it is a good one, then go for it. You don’t want to wait too long only to have someone else beat you in the market niche