joint venture marketing
Many budding Internet business people and entrepreneurs think that the best way to establish a successful business is to sell to a wide market. They may be afraid to pursue a smaller niche at the risk of limiting themselves and turning away potential customers. However, this philosophy actually runs counter to what a niche-based business is all about. With a market of specialized products or services, there is less risk. So begin by gaining expertise in one product area, rather than trying to spread yourself too thin with little, to no experience.
Occupying a niche means that you won’t be competing with many similar businesses solely on price. As a new start-up business trying to compete with established companies, you may not have the capital to do so, via price competition or a slick marketing campaign. A niche market product is a great way for newcomers to get a start, but there are a couple of integral strategies that will accompany it.
Benefits of a Niche Market Business
A business that sells to a niche market offers products or services that are specialized and often customized to a client’s particular requirements. Because what you are selling will have a unique set of qualities, you are often able to charge more as there is less competition in your field. You distinguish yourself by offering a product or service that almost nobody else has.
Offering a niche product can present some difficulties when it’s time to market your company. Being so specialized, how do you get word out about what it is you do? Establishing a collaborative relationship with your contemporaries in similar but not identical industries is an important aspect of a strategic marketing plan.
Strategic Alliances and Niche Markets
In small business, it is important to get to know your contemporaries, as well as your competitors. You may be trying to gain the same business that your competitors are, but occasionally they may be out of a product and send a customer your way, and vice versa. This is less likely if you have a corner on a small niche market, but it’s still a possibility and good relationship practice for your business.
Strategic alliances are an important aspect of niche marketing because these relationships will help raise awareness for your products and services. For example, if I own a company that rents designer wedding dresses, it makes sense for me to form a business alliance with a photographer and/or caterer since they are both in the wedding industry.
Strategic marketing alliances are particularly important as they relate to niche businesses because they operate largely by word of mouth. If that word of mouth suggestion comes from another professional in a related industry or field, it will lend credibility to your business. Small businesses partnering together will help ensure a future where niche markets and small companies continue to be a success.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
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