Why Niche Marketing is So Wonderful
Definition: Niche marketing is defined as channeling all marketing efforts towards one well-defined segment of the population. There is one important thing to understand that ‘niche’ does not exist, but is created by smart marketing techniques and identifying what the customer wants.
Description: Niche marketing is a marketing tactic deployed to target a specific market segment which is unique or ignored by others. Niche market is often created by identifying what a customer needs (their pain points) and then tries to deliver a better solution to a problem which was not presented by other accounting firms.
Example: Gas stations are very common but a segment of the business community that most accounting and CPA Firms seek to avoid because of gas taxes, sales tax, inventory and razor thin profit margins. And if everyone else seeks to avoid them, then the accounting firm that embraces them and alleviates their pain will have plenty of room to grow.
Chahal and Associates has capitalized on this opportunity throughout California and has become the gas station accounting leader. They understand gas tax regulations, underground storage tanks, and diesel tax credits backwards and forwards. And, they actively participate in the American Petroleum and Convenience Store Association to extend their penetration deeper into the marketplace.
In marketing strategy, first-mover advantage is when one business is the first entrant and gains a competitive advantage by servicing a type of client more effectively, thus gaining a superior market share. In turn, this competitive advantage enables the first-mover to realize higher profit margins and efficiencies that other accounting firms can’t provide. In California, Chahal and Associates would be a good example in servicing gas stations, convenience stores and car washes.