Small Business Practices: How to classify your niche market

How much are you willing to pay someone who can tell you off hand –and accurately so –how big your niche market is, and its earning potential for your small business? Surely, you wouldn’t mind parting with your hard-earned money for information so difficult to obtain. But having a clear idea of your market, how big it is, its needs, and preferences, and how you can serve them, are stakes that can fasten your enterprise firmly in the small business arena.

You can actually classify your niche market without outsourcing or paying for it. Look at your target niche market and classify them into the following categories:

• Demographics. Look at your niche market profile age, gender, profession, income, social class, etc. Pick indicators that suit your needs. Linda Morton of Strategic Marketing Segmentation wrote excellent publications on specific market profiles based on careful research. Her works are, thus far, the best resource for this kind of info. Use these excellent resource to your advantage.
• Behavior. Classify your niche market by how they perceive the benefits of your products, how they use it, how often they purchase, etc. Look at complaints and suggestions if any. This can easily be done by asking a few questions from your customers.
• Psycho-graphics. Classify your niche market based on lifestyle, personality and values.
• Geography. Classify your niche market by location: state, regions, cities, sub-urban, etc.

By classifying your niche market this way, you can focus more your marketing and selling on a more specific market that will likely convert.

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About the Author

Nor Franco is the Managing Director and Virtual CEO of nextManager.net. He's a former corporate executive whose passion is bringing out the full potential of HR in Businesses. This time that passion is pursued through Virtual Management. He writes and blogs about his management views and insights here. Follow him on Twitter.