A NICHE MARKET is a subsidiary small group among the main mass market, which is usually ignored by large companies. It consists of specific products focusing on specific needs of potential customers. There is a fine line between focusing on customers of a NICHE market and unsustainable niches. Every products and services in any sectors invariably have niches in them. Difficulty is finding them, analyzing the feasibility and marketing. An example of NICHE market is business channel that offer news exclusively for investors. Mainstream news channels don’t provide information about shares and stocks. The potential customers are share traders, investors etc,
Here is a brief explanation on how to market software NICHES and get maximum profit from minimum resources.
Why choose SOFTWARE NICHE MARKET?
Although there are numerous software mass market companies making exponential profits, the initial investment, human resource and infrastructure is equally huge. Because of large market potential, competition is fierce and pricing of softwares must be done accordingly. NICHE market needs low initial capital. There is little or no competition as it is a specialized market. So you will have the privilege to set software prices arbitrarily. By doing this you gain a large market share which enhances your reputation. If merger is acceptable to you then large mass market software companies who look to get into NICHE market will definitely offer lucrative deal.
CHOOSING A SOFTWARE NICHE
One of the most important things is choosing the right software NICHE. It is better if you have knowledge and are passionate about the software NICHE, but it isn’t absolutely necessary. There is a concept called “CATCHING A LONG TAIL” which in simple term means software products that are in low demand or have low sales can collectively make up a large share of market rivaling or even exceeding mainstream software products. It requires plenty of time and research to select a proper SOFTWARE NICHE. You have to target growing segments less affected by recession like government, health-care, utilities etc., once you develop a software niche, its all about sales and marketing.
EFFECTIVE MARKETING STRATEGY FOR A SOFTWARE NICHE.
The best way to start marketing is identifying your target customers. Once you explain about the benefits of SOFTWARE NICHE they will be happy to pay more than normal price as they are satisfied with specific customized software products. Since they are satisfied, they usually stick to you for almost all their specific software needs. This can be achieved by “UNIQUE SELLING PROPOSITION” (USP).Your SOFTWARE NICHE has to be like a patented product which nobody else can emulate. However to bring out multiple SOFTWARE NICHES, extensive research and innovative ideas are required. This is hard to achieve but once it’s over you will be far ahead of competition and get a monopoly in that sector. Another marketing strategy is going as narrow as possible and over delivering value to your specific customers which keep them loyal to you. Even within a SOFTWARE NICHE there are sub or micro NICHES which you can exploit provided it is sustainable. For example, a SOFTWARE NICHE is keeping track of salaries given to employees of an organization. SUB SOFTWARE NICHE of this will be keeping track of savings and expenditure of the employees. Most of the time customers feel so amazed by micro niches, as they were not expecting it, that they always depend on you for their specific needs. After dominating main SOFTWARE NICHES and sub SOFTWARE NICHES’ market, you will have a reputation and a brand name. All your future software products will be sold easily just by brand name and face value. A creative market segmentation strategy can really help you survive in financial meltdowns.
SOFTWARE NICHE MARKET is more dependent on choosing, planning and marketing a product rather than financial resources.Specialization always earns greater profits.
RECENTLY MANY MAINSTREAM SOFTWARE COMPANIES ARE ENTERING SOFTWARE NICHE MARKET TO UNLOCK ITS ADVANTAGES.