Niche Vs. General Services in Marketing

What is Marketing and Why is Proper Marketing for Your Business Important?

Marketing is the activity that a business undertakes to promote the use of its services or the purchase of its goods. There are numerous ways one could go about promoting their business using marketing. For many new or smaller businesses, it is vital to engage in marketing. Roughly 90% of small businesses invest in some form of marketing, whether that involves creating a social media page, sending emails to prospective customers, or employing other promotional strategies. Showcasing one's work and services through marketing is essential for small businesses to attract and build a loyal customer base. Ineffective marketing is one of the leading causes of business failure in the early years, as it limits visibility and ultimately leads to an absence of customers. Proper marketing of the business's products and services will steadily attract clients. Since small businesses often face precarious financial situations, they must market themselves effectively to develop their consumer base, as financial issues are a primary cause of business failure. Most businesses choose to market their services or products to either a specific or a broader group of customers, so it is key that one chooses what best aligns with their goods and services.

What is 'Niche' in Business?

Niche services are specialized services that cater to a specific type of customer, and almost all businesses capitalize on their niche to some degree. Simply put, a niche is when a business tailors its products or services to a specific target audience rather than trying to appeal to everyone. The beauty industry, projected to be worth about $670 billion by the end of 2024, is one of the most lucrative places to find a niche, especially for small or home-based businesses. The beauty industry ranges from hairstylists to nail technicians to lash artists, most of whom provide specialized services to clients who appreciate how their work reflects the distinct styles they desire. For example, many home-based hairstylists cater to specific hair types or specialize in certain styles and braids, while most lash technicians focus on either thick or wispy lash extensions. Many of these businesses create social media pages to promote their products, prices, and the city in which they operate.

The advantage of a niche consumer base is that the business offers a unique service that isn't readily available in the area, making it easier to attract loyal customers. Social media is an excellent tool for discovering and promoting niche services; however, businesses that focus primarily on these offerings may experience a decline in their new and general customer base—though this is typically not a major concern. Additionally, if a niche service is poorly executed, the business may struggle to build a customer base altogether.

A great example of this is Russian manicure services, which specialize in elegant, simple, and natural-looking nail styles; however, removing the cuticle is crucial to achieve this minimalistic look. Not only do many people not appreciate the simplicity of this style, but if the process of cutting the cuticle or the sanitization process is done incorrectly, it can lead to an infection. While Russian manicures are a highly profitable niche to build upon, one wrong move can leave the business with no reliable service to build upon and a waning consumer base.

What is Considered General Services and Products?

General services and products are the provision of a variety of goods and services by a business to its consumer base. Businesses with general services and products tend to target a more mainstream audience. Larger corporations like Walmart or Target specialize to some extent, regardless of how broad the marketing of products and services can be. Many larger chain stores capitalize on offering a wide variety of goods, including food, books, basic sporting equipment, and clothing. While large corporations rely on selling a wide variety of products, small businesses often count on providing a broad range of services as well.

Remaining within the context of the beauty industry, many home-based hairstylists who work with curly hair also offer wig installations and a range of braid styles. These small businesses benefit from having a relatively large customer base willing to pay for their services, even though they often offer some level of specialization. Many of the hair stylists who run social media pages showcase the range of their work, attracting customers who value their skill and competence in their area of expertise. The downside is that they may struggle to build a loyal customer base or have the ability to specialize in and promote a distinct style. Nevertheless, many businesses remain profitable by consistently attracting new customers, further continuing the growth of the business.

Conclusion

Successfully providing and marketing to a consumer base can be challenging, but it remains a crucial component of business and a key driver of success. If you are interested in learning more about business and business-related topics, visit our Instagram page (@nextstepbusinessofficial)!

Sources

COSMOPROF. "THE GLOBAL BEAUTY INDUSTRY: THE MARKETS to MONITOR in the next FUTURE." COSMOPROF, www.cosmoprof.com/en/media-room/news/the-global-beauty-industry-the-markets-to-monitor-in-the-next-future/#:~:text=For%202024%2C%20it%20is%20projected.

Horton, Melissa. "The 4 Most Common Reasons a Small Business Fails." Investopedia, 28 Jan. 2024, www.investopedia.com/articles/personal-finance/120815/4-most-common-reasons-small-business-fails.asp.

Snyder, Kristy. "What Is Marketing? Definition, Strategies & Best Practices – Forbes Advisor." Www.forbes.com, 6 Nov. 2023, www.forbes.com/advisor/business/what-is-marketing/.

Twin, Alexandra. "Marketing in Business: Strategies and Types Explained." Investopedia, 4 Mar. 2024, www.investopedia.com/terms/m/marketing.asp.