First things first what is a market? A market is a community of people who share a common interest. Okay, then what is a niche? Within every market, or community of people you will find multiple niches. A niche is a subset of a market and this is typically based on a particular topic of interest. It’s the niche market that is the most important to successful small business promotion.

Let’s look at the target market Wine Enthusiasts. This is a very broad market, which makes it difficult to reach; how do you know where they are or how what to sell to them.

When you break the Wine Enthusiast market down into smaller groups of interest or niches you are more able to focus on a tighter community of individuals. This makes much more sense when it comes to cost effective and efficient target marketing.

There are many niches for Wine Enthusiasts. These could include topics such as:

Buying wine on line

Wine Schools

Wine Accessories

Australian Wine

Wine Pairing

Wine Reports

Wine Tasting

And the list goes on..

If you already know your market niche you’ve gone a long way towards being able to directly target your ideal audience. However, you should also be aware of the micro niche within your core niche since this narrows down your marketing efforts to a tighter group of individuals, that is, the perfect customer for you. It also means you can develop your product or suite of products to suit the specific needs of that customer. So in our example for Wine Enthusiasts your niche might be people who love Australian wine and your micro niche might be people who love Australian white wine.

Understanding your market niche and micro niche is important to your small business promotion because there is typically less competition in marketing to that niche. This leads to efficiencies in marketing spend and product development because you know exactly where to find your audience and what to deliver to them.

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