Niche Marketing: on cold storage

By Elias Chelidonis

It is well known that the majority of small and medium web hosting companies are unable to compete with the “ big guys “ because of limited capital. Hence, they are required to find other ways, more creative that will allow them to slow by slow increase their share of the pie.

Niche marketing  is the unique advantage or benefit a product or service offers a particular group of customers . In other words, go there where the big guys DO NOT because either they do not find the market big enough for their size ( a yearly add on of 500 customers may be of no importance for Hostway, but for a small starter hosting company this is a great achievement ) or simply, they have not thought of that specific market segment.

For example, creating a hosting plan for non profit organizations. The plan will be offered of course at a lower than the normal price and would be advisable that it is charged on a yearly basis. Do a quick research online and locate few hundred non profit organizations, then email them and let them know that you have a plan tailored to their needs.

Another example of a niche market, are students. Students are most likely not willing to pay a lot to publish a website, hence, creating a low priced plan can be tempting.

However, niche strategy as any other will not be successful if it is not followed by a smart targeting campaign. If you have the cash you can certainly advertise on sites meeting your target`s group criteria, however, issuing press releases is another efficient, yet low cost way of brand and offerings awareness. There are few free press releases providers on line. Their news are also appearing on major news searches at yahoo, google, etc...

Niche marketing can also be applied on advertising vehicles you chose to promote your site. Currently, over 90% of small and medium webhosts, advertise on the hosting directories. But think, who will really go to those directories? Most likely someone who already knows quite a lot about webhosting. If that is the case, he will most likely chose a big provider due to its brand awareness and reliability. The “ small guy “ needs to advertise on sites where his target market visits often. For instance, if you want to promote your e-commerce plan, advertise on small business forums, on business blogs, or publish a press releases targeting to small business.

Good luck!

Elias Chelidonis



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