Art of Marketing

Chapter 17. Niche Market Domination

Hold fast to dreams,

for if dreams die,

life is a broken-winged bird that cannot fly. — Langston Hughes

You use this strategy when dominating a deep niche

with a product or service that people want and must have.

You become the sole supplier,

a high-quality product or service

that everyone wants but no one else offers.

For example, smartphone users quickly switched

from writing e-mails to texting SMS.

But SMS messaging takes time and focus,

and that’s why it’s widely banned on national highways.

To fill the niche of the desire to communicate instantly and easily

with colleagues and friends of mobile phone users,

the two companies quickly developed new applications,

WeChat and WhatsApp.

With both apps,

you can tap the icon,

quickly tap the recipient’s name,

write the message

and send it in seconds,

anywhere in the world.

Very quickly,

WeChat had more than 200 million users (mostly in China)

and WhatsApp became the dominant voice communication application

in the rest of the world.

“Good service is good business.” — Siebel Ad

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Create what is needed

Another example of this strategy is called “toll gate niche”.

This is where you develop a product or service

that people in a particular business or industry need

to get the most out of the other product and service,

which is essential for the business and their personal lives.

My favorite example of a “toll station” niche strategy

is Hughes Drilling,

founded many years ago

by Howard Hughes’ father.

He was the first inventor responsible for the design,

development and marketing of diamond drill bits

for oil extraction.

Someone once asked him

if they really needed a Hughes diamond drill bit

(which was very expensive).

He replied that oil operators always have two options.

They could use his drill bit to drill for oil,

or they could use a shovel.

In a few years, every oil company in the world

had no choice

but to spend money on Hughes’ drills.

His drill bits are the perfect choice

for cost-effective oil extraction.

The intensity of your desire governs the power

with which the force is directed. ― John McDonald

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Develop a specialized service

Another strategy helps you develop a specialized skill or service

that is so important that everyone needs it.

Microsoft, which has developed a suite of office programs

that everyone needs to be productive in their business,

is a compelling example in this section.

Microsoft is constantly improving that suite,

adding new features,

and at the same time reducing costs

so that no competitor can enter the market.

This strategy of creating a product

that is indispensable for efficient business operations,

increasing quality

and continuously reducing costs allows Bill Gates

to become the richest person in the United States

with a fortune to date.

The current (2014) is estimated at about $72 billion.

How can you reposition one or more of your existing products

so that it becomes indispensable

to everyone using another product or service?

Can you dominate a niche with a better,

faster,

and cheaper product or service

than any existing product or service?

Always remind yourself of the concept of demand

for “unique added value”.

You should focus on growth,

then show

that what you offer includes a unique added value

that customers need if they want to be happy and satisfied.

For the resolute and determined,

there is time and opportunity. ― Ralph Waldo Emerson