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It is only recently that niche marketing has won wide-spread favor. The main reason is that the Internet has made niche marketing more feasible. Before the Internet, a niche populated by a total of one thousand people scattered all over the Earth would have been impossible to reach. Put those 1000 people on the Internet, and they all search Google for a keyword phrase associated with their own interest which lands them at the one site that caters to that interest. Presto! A new niche market is born.
The ground-breaking book, "The Long Tail" by Chris Anderson, is one recent work that analyzed the niche market strategy. The name "the Long Tail" comes from what a graph looks like if we record the market sectors of any category of product ranked by popularity.
You can find this shape in the statistical distributions of many markets. Typically, there will be one or two hugely popular brands or varieties and as many as hundreds of less popular brands or varieties. In this graph, you could say that the chart is the beverage market and the green area is milk and soda, while the yellow area is fruit juices, vegetable juices, alcoholic beverages, flavored waters, energy drinks, yogurt shakes, etc. Or you could call the graph computer systems, and the big green area is Microsoft, while the yellow area is Apple, Linux, BSD, Solaris, OS/2 Warp, ReactOS, Plan Nine from Bell Labs, and so on. Now, if this were your market, which part would you go for? If you go for the green area, you'll be competing with thousands of others who have the same idea. If you go for the yellow area, you'll usually have a bigger patch all to yourself - and the undying loyalty of a customer base!
You see many examples of "long tail" marketing all over the Internet, but the full realization of the power of this marketing method is just beginning to be understood. In the rest of this book, we're going to thoroughly explore the niche marketing strategy. Our studies will range from dry and scholarly to freakishly quirky, but always will be covering some very exciting territory!
Why Choosing a Niche is Important in Internet Marketing
Internet marketing is quickly becoming one of the most profitable types of marketing available. The Internet has the capability of reaching a wide audience and those who take advantage of this widespread reach find themselves in a position where they can benefit greatly from potential clients from all over the world.
There are many who are attempting to profit from Internet marketing but those who are truly successful realize the importance of focusing their efforts on a specific niche. This means the investor focuses his marketing effort on a specific area of interest. This enables the investor to have a more focused strategy for reaching potential customers.
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