Most of us have heard the term “market saturation” at some point in time, although I must admit until I entered the world of Internet marketing I had given it little consideration. The term holds much more weight for me now, and it surely will for you, too, if you’re involved in, or considering becoming involved in Internet marketing or Internet business.
Let’s take a moment to look at what market saturation is and why it’s important to business people and marketers.
Market saturation, by definition, is when the quantity of products in use in the market place is close to or at its maximum.
Now this definition is not referring to all products for all markets, but rather a set type of products for a particular market. For example, hedge trimmers, which would be marketed to gardeners, landscapers and gardening enthusiasts.
If there were just so many manufacturers producing hedge trimmers, and the market reached its capacity (meaning a high percentage of the gardeners, landscapers and gardening enthusiasts already owned hedge clippers) then market saturation would take place.
For those of us involved in business and marketing, market saturation can mean a huge dip in sales of our products.
If we’re involved in a market where there is a lot of competition and a limited market then the risk of market saturation occurring is higher.
This is one of the main reasons behind the trend of carefully selecting a niche market. The chances of market saturation occurring in a carefully chosen niche market it much less, since you’re marketing to a much less-served market, or perhaps a previously undiscovered market.
If you’re already involved in an Internet business or Internet marketing and you’re seeing your market move towards saturation you may be wise to consider selecting a smaller niche within your market.
By doing this, you can narrow down which niche within your current market is least served and concentrate your energy on it.
If you see that all niches within your market are well-served you may want to consider another niche, perhaps related to your current market, but less served.
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