In better times for the economy, many successful companies were obtaining a high return on investment (ROI) by targeting companies that simply needed funding. Direct mail campaigns and direct response Internet leads that focused on end users were providing a profitable return, even with a small response rate. The problem with this approach is that when the economy turned, this marketing strategy fell flat. This has left companies scrambling to come up with new marketing strategies in a post-recession economy.

Niche targeting simply means to focus marketing efforts on a group of end users that are using a particular product or service. Many companies attempt to target specific niches, but most just apply their regular sales and marketing procedures towards particular industries. This is not niche marketing. If you are going to niche market effectively, it is essential to implement a whole new business process toward the newfound target group.

Choosing which niche to focus on is the most important part of this overall strategy. The more specialized you are in targeting a niche the better. A good place to start is by shifting your focus to niches that are cutting costs for end users.

The real key to achieving an extraordinary level of success within a niche is to build better relationships with those who specialize in your target niche. When you are strategically targeting a niche, the standard procedure of recruiting goes out the window. By building a database and marketing campaign around your niche, you are in a unique position to offer those you do business with a tremendous amount of value. Share the prospect group, and now both you and the vendor are focusing on the same customers, and you are both offering services that compliment each other. By sharing the marketing efforts and referring each other business, you will amplify your own sales efforts with your new partners.

View a previously written post by Mouli Cohen about marketing