It’s easy to see the Internet as nothing more than a way to market to the masses. People from all over the world access it every day, but your product is made for a select group, not the entire population of the planet.
So there’s no point in marketing on the Internet, right?
Wrong.
Niche marketing is entirely possible on the Web, and with the right strategy, can be very successful. Take Zaptel.com, for example. The company sells prepaid phone cards targeted primarily at international callers. Users accessing its Web site can type in which country they want to call and receive a comparison of all available prepaid calling card rates.
When they find one they like, they can purchase it online and print it out. This isn’t a product that appeals to everyone, so the marketing has to be very focused.
Before going online, Zaptel had a strong relationship with au pair organizations, which bring European caregivers to the United States to live with host families who needed daycare for their children.
“The host family probably wouldn’t be concerned about rates to Sweden, Ireland or wherever, but the au pair would be,” says Dan Falter, vice president of marketing for the company. “The host family’s calling plan may not meet the needs of the au pair, so we started targeting that niche. We created some associations and alliances with those organizations.”
The company then transferred the services to the Web for easier access and started looking for other niches that might be interested in the products.
“We looked at who’s interested in saving money in a calling plan, and who do we have the greatest opportunity to capture as a company,” says Falter. “We identified ethnic groups who still have ties to Europe or countries outside the U.S. They are not as targeted with promotions and there are not nearly the low-cost options for international calling as there are domestic. We could clearly provide them with services.”
The company is mapping out a plan to advertise in ethnic publications and forming alliances with organizations that serve that niche.
“There are other niches, like college students, we have targeted as well,” says Falter. “They are typically required to use the service the university uses. Prepaid is great for them, because they can get lower rates than from the dorms, and billing isn’t a concern. They are also a cost-conscious group and are willing to dial a few extra numbers to save money.
“They are also Internet savvy, so we really don’t have to explain our product to them.”
The company has targeted several college publications to advertise in, and has created an associates program in which students can refer business off their own Web sites and get a small commission from purchases made. It is looking into forming alliances with international student organizations, as well.
Zaptel is also targeting small and medium-sized companies that do business internationally.
“These companies are bombarded with domestic calling plans from corporations trying to get them to use their service,” says Falter.
He says the company has a partnership with a carrier that can provide discounted international rates along with competitive domestic rates, giving small businesses an option that allows for overseas savings.
All these niches still stick to the company’s core product of discounted international calling.
“We are not going to spend tons of money to advertise our service and name to everyone,” says Falter. “We don’t have that kind of money, and it’s not the wisest way to do it. We’re a small business, and we’re trying to maintain profitability, so we’re going to target where we have success.”
How to reach: Zaptel, www.zaptel.com
Todd Shryock ([email protected]) is SBN’s special reports editor.