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This strategy is flawed and it places a limitation on the Internet marketer to expand their business in the future. Niche selection should be the first step to build an online business rather than product selection. This article basically highlights the flaws associated with product oriented strategy and includes the benefits of niche selection.
PROBLEMS WITH PRODUCT ORIENTED STRATEGY
The problem with choosing a product first is that, products in general go through a life-cycle. A typical product will enter the market and go through various phases that include:
The problem with choosing a product first is that, products in general go through a life-cycle. A typical product will enter the market and go through various phases that include:
[1]. Growth Phase
[2]. Maturity Phase
[3]. Decline Phase
When a product reaches the decline phase sales decrease considerably and the product itself may become obsolete. This means that the market demand reduces significantly and in turn your sales take a knock. The impact on you as an Internet marketer is that you are left in the lurch and your efforts to market your chosen product was done in vein. Imagine the amount of time, and money you could lose if a merchant suddenly pulls a product off the market? A product orientated strategy is a risky approach for doing business and it is a route, which I advise you, not to follow.
ADVANTAGES OF NICHE ORIENTED STRATEGY
A niche which is a specific sector in a market that displays similarities such as age, gender, interests, needs and wants will never become obsolete. That specific market segment will always exist. An example of a niche will be women aged between 40-50, who are overweight and are extremely conscience about their weight gain or successful men aged between 35-45, who are going bald and losing their self-esteem as a result. Niches of this nature are prevalent and the people within these niches will always possess a wide variety of needs.
A niche which is a specific sector in a market that displays similarities such as age, gender, interests, needs and wants will never become obsolete. That specific market segment will always exist. An example of a niche will be women aged between 40-50, who are overweight and are extremely conscience about their weight gain or successful men aged between 35-45, who are going bald and losing their self-esteem as a result. Niches of this nature are prevalent and the people within these niches will always possess a wide variety of needs.
If you target a niche, your options will not be isolated when marketing products to the individuals within your chosen niche. Besides offering hair loss treatments to balding men, you could offer shampoos, gels, and even nose hair trimmers. You could even market an ebook that teaches an individual to raise their levels of self-esteem. The possibilities are endless! A niche gives you a wider spectrum of opportunities and it is the best route to build a sustainable business.
Now can you see why choosing a product first is the wrong approach to marketing online? Share your experiences and thoughts via comments. We love to hear from you.
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I must say this is a very nice article! Great work Saksham! Looking forward to more of your posts at EAB!
REPLYI must say this is a very nice article! Great work Saksham! Looking forward to more of your posts at EAB!
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