What Is Niche Marketing – The Niche Marketing Concept

There are clear benefits that are targeted at a small group of people, especially the cost-effectiveness of a campaign of this kind. Media, which is based on your niche target market is generally cheaper than a smaller audience, but if the audience is 100% of people who are interested in your product or service, you are in for a winner.

We all know what a niche is that I will not bore you with the background, what you have not heard of the concept of niche marketing. This is the concept of finding this niche audience and creating a perfect country to find the exact demographic.

So we discussed how it can be more profitable, it is now about to examine ways to make such a marketing campaign. First you must know what media your target audience will be the most sensitive, if you have any direct competitors are doing the same kind of advertising, so your market will be much less sensitive. You may need to think a little more of the box to create a truly effective campaign.

You might think you’d want to do some ‘direct marketing, as shown in the distribution, but people are losing their willingness to such a degree of radio stations and local distribution may be as follows after you, as you going to get people to Afro-Caribbean culture? Well, there are a lot of hairdressers, textile shops, church officials, adding that when in direct contact with the market directly, within the capture area for the market.

What you need to do is three circles, and write in the circle of progress that your competitors are doing in a second writing that the activities of your audience to do, and the second is where you fill in the gaps between the two, so you can really find a niche marketing strategies for you to do.

One of the best factors of niche marketing is that if a method works, once submitted, you can try another method that the initial outlay is not so much as a radio announcer or TV or the local newspaper, that he might not ride. You just have to try different methods of low cost, until you find the right few who will give you the return you had hoped. Even if it does not work the first time, however, strengthening the brand and what you need is a good as you develop your campaigns.

Advantages of Email Marketing – Why Is It the Answer for Your Business?

The DMA (Direct Marketing Association) tells us that 90% of companies use email marketing and they describe email marketing as the new hero for troubled financial times. Their research shows that more than half of companies surveyed expect to increase their spend on direct email this year, many of them cutting back on traditional direct mail in order to do so. It all sounds great, but why is email marketing the answer for your business?

There are three massive advantages to email marketing compared to traditional marketing techniques:

Its inexpensive, the cost of email marketing campaigns is significantly less than other marketing strategy. As the medium is so scalable, you also have the ability to commit as much or as little as you want to email marketing.

Great Return on Investment, no other type of direct marketing will offer the same sort of ROI as email. This is partly because of cost; you aren’t spending as much in the first place, but the flexibility of the medium also has an impact. Targeted email marketing allows you to personalise campaigns to your customers. It is also a great way to maintain the relationship with your existing customers and to make them aware of offers. When done right, there a great return on investment, but you can still get it wrong. If you don’t have any in-house experience of email marketing campaigns, then it can be wise to take expert advice.

Measurable, an email campaign allows you to measure effectiveness more than any other type of direct marketing. You are able to track every opened email, every click, every email shared right through to the sale. This differs massively from a direct mail shot where no one can tell you how many went straight into the bin.

With email you can see if your campaign has worked, but perhaps more importantly you can see where it didn’t work and what didn’t work. This allows you to learn from experience and use that feedback to tailor your email activity to your customers needs.

Nobody will tell you they like spam, but what do we actually mean by that term? At the moment opinion is shifting towards the idea of spam as an email that is irrelevant to the user. Beware of allowing this to lull you into a false sense of security though. A recent DMA survey showed that 75% of consumers found less than 20% of emails they received to be relevant to them.

There are still many people who class spam as something they didn’t sign up for. Another study asked consumers to rate acceptability of promotional emails out of 5 (5 is most acceptable, 1 is least acceptable.) Permission clearly made marketing emails more acceptable, where the consumer had given permission for ongoing communication participants rated it as 4.1 out of 5. When the consumer had interacted with a company, but had not given permission for contact, the score dropped significantly to 2.5. The worst score was for marketing material from companies who had not been given permission and with whom the consumer had never interacted. This scored 1.7 out of 5.

The moral of the story seems clear; concentrate on targeted email marketing campaigns to make your email more relevant to your customers and focus on marketing to opt in lists. This seems like the surest recipe to ensure your emails are not classed as spam by any user definition.

Case Study: How to Significantly Cut Drawdowns Using Market Internals

In 2014, I spent about 6 months in a row with this unique traders tool called Market Internals, exploring its possibilities every single day, searching for new and creative implementation ideas for my own automated trading systems (ATSs). With a real obsession with this concept, I finally found almost 40 new ideas (mostly my own proprietary ideas) on how to squeeze the most out of this great tool, and slowly started implementing many of them into my own trading – with great success.

I truly believe that Market Internals can give a trader a small, unfair advantage – if thoroughly thought out and implemented well, especially in new, creative ways. Therefore, in this article, I would like to give you a very brief introduction into the Market Internals world, together with an example of one of my private Market Internals filters – to show you, how dramatic the impact of Market Internals deployment can be – in a favorable way.

Introduction: What are Market Internals (MI)

We all know how hard it is to find a new, viable trading edge. We are also aware that the scope of our possibilities is quite narrow: It doesn’t really matter what trading indicators or other tools of technical analysis we use – most of the time they all use the same source of data anyway. This data consists of Open, High, Low and Close values of the bars in our trading chart, and whatever trading indicator we use, we basically use only a slightly different interpretation of the same O-H-L-C values.

So, if we really want to go a step further and implement a broader view for our trading decisions (trading entry/exit conditions), we have to start investigating outside of the O-H-L-C values. We can, for example, implement information like Volume or Open Interest to our trading entry/exit conditions, which is not a bad idea at all, and many of my ATSs use O-H-L-C values together with Volume effectively.

However, we can still go a step further.

We can do something that many traders have no idea they can even do: We can start making our trading (entry/exit) decisions based not only on the data coming from the underlying market but also on taking into consideration the market (its overall direction, quality, strength and overall “mood”) as a whole!

Just imagine:

Wouldn’t it be fantastic to know where the stock market as a whole is heading, before we enter a position in our emini S&P strategy?

And that is exactly what Market Internals are about: The ability to read the market as a whole and effectively incorporate this much broader view into our trading decisions.

Market Internals: A quick introduction

So what exactly are Market Internals? Where do they come from?

It’s very simple: Market Internals are information about the overall stock market, provided by the stock exchanges (NYSE, AMEX), usually in the form of a standalone data feed.

And this data feed instantly provides us with real-time information about the overall stock market situation.

Using Market Internals we can immediately, in real-time, start receiving information like, for example:

How many stocks from the Dow Jones Index have just moved up and how many down?
Is the volume of all rising stocks from the Dow Jones index higher or lower than the volume of all falling ones?
Or even:

How do ALL stocks move in the entire NYSE? Are most of them rising or falling?
How many stocks have a price that hasn’t changed?
What is the direction of the majority of the volume? Up or down?
Do the 30 stocks in the Dow Jones index correspond with the rest of the market, or does the Dow Jones index now live its own life?
As you can see, there is plenty of information that can be obtained through this standalone data feed about the stock market as a whole (and later on, to be used in our strategies).

All this information can be split into several different categories, and every category has its own meaning and preferred method of implementation. However, because the space for this article is very limited, and the subject of Market Internals could give more than a dozen articles like this, I am going to focus only on one Market Internals category, one of my most favorite, the MI pair UVOL-DVOL.

Market Internals: UVOL-DVOL

This category of MI simply consists of two separate data feeds provided from the exchange:

$UVOL monitors the total volume of all rising stocks on the exchange.

$DVOL monitors the total volume of all falling stocks on the exchange.

By using these data feeds (often called MI indicators), we can monitor the volume on one side or the other, so we can get a better idea where the volume is moving to, i.e. which side is stronger. This is, of course, a very powerful view on the market that can provide us lots of important information (if we know how to use it).

From a practical means, we usually add two different data symbols into our chart (data2 and data3) to start using UVOL-DVOL pair for our trading.

Then we can start using these MI indicators as additional, or even leading filters (or as I usually call them – “Super Filters”) for our existing systems – with the goal to improve them significantly.

Let’s have a look at such a condition in practice. I am going to reveal one of my proprietary UVOL-DVOL MI conditions, which I use as a filter for many of my breakout index or stock strategies (MI can only be implemented on indexes or stocks of futures indexes).

UVOL-DVOL as a filter for significant improvement

To demonstrate the effect that Market Internals can have, I have decided to use the most simple condition that I could think of – a primitive breakout condition high=highest(h,N1). I haven’t done any optimization of the N1 parameter, nor have slippage and commission been included in the results shown below – the purpose of this article is not to present a functional breakout trading system but to demonstrate that Market Internals can be applied to even the most basic systems and get immediate, and very often dramatic, improvements. For the N1 parameter, I have used the first number that came to my mind, number 20.

Here is the basic code that I will use to demonstrate the impact of the Market Internals “Super Filter”. The test will be completed on the EMD.D market, 15 minute timeframe, from 3/22/2006 – 3/21/2016:

If high = highest(h,20) then buy this bar at close;

setstoploss(600);

setexitonclose;

Here are the results:

Net Profit: $79,440

Profit factor: 1.17

Avg. Trade: $36.52

Max Drawdown (close to close): $12,650

Net Profit / Max DD: 6.28

Number of trades: 2175

Now let’s move to the implementation of a very simple Market Internals condition that is based on the following rules:

Calculate the difference between UVOL and DVOL,
Calculate a 30 bar simple moving average of this difference,
If the UVOL-DVOL difference is above the moving average of the UVOL-DVOL difference AND high = highest(h,20), a Long position is opened,
The position is closed by the end of the day or when the 600 USD stop-loss is hit.
In a moment, I will show you the outcome of the application of this code to the original system. But first, I need to mention that I have used several small add-ons, like for example, taking into consideration the zero line of the UVOL-DVOL difference to cancel the “Super Filter” in certain situations – all of this is included in the code and the workspace that you can download at the end of this article. Yet the basic idea is exactly as I have described it – to work with the UVOL-DVOL difference and with the moving average of this difference.

Let’s take a look at the results after application of the Market Internals “Super filter”. First, the performance report:

Net Profit: $76,000

Profit factor: 1.38

Avg. Trade: $63.81

Max Drawdown (close to close): $7,790

Net Profit / Max DD: 9.76

Number of trades: 1191

And finally, the comparison table showing the results before and after the application of the Market Internals based “Super Filter”.

Metric / Before MI / After MI / Improvement

Net Profit / 79,440 / 76,000 / -4.3%

Profit Factor / 1.17 / 1.38 / +17.9%

Avg. Trade / 36.52 / 63.81 / +74.7%

Max DD (C-to-C) / 12,650 / 7,790 / -36.8%

Net Profit Max DD / 6.28 / 9.76 / +55.4%

Trades / 2175 / 1191 / -45.2%

I believe that the numbers speak for themselves – maximum drawdown has improved by almost 40% (36.8%), Average trade by +74.8%, and the Net Profit to Maximum DD ratio by +55.4%. All really great improvements, and I see similar improvements of Market Internals very often.

Conclusion

I have been using Market Internals for my own trading since 2014.

Here is what I have generally achieved by implementing them into my own trading strategies:

Reduce max. Drawdown
Improve Avg. Trade
Improve Net Profit / Max DD ratio
Smoother equity curve
Overall improvement of portfolio performance
Getting additional psychological confidence by knowing that I only trade in highly favorable market conditions.
I was really surprised that Market Internals are used by so few traders, yet, when I present them the Market Internals possibilities, they usually get quite excited and implement it to their own trading systems with instant positive impact.