Literarily, a niche refers to a comfortable position. Worksheets and logs will be available for download. A niche market is a focused, targetable portion of a broader market in which specialized products or services can be sold. Understanding the market means you are able to identify the unique needs of your potential audience, provide new and compelling products, tailor your products in the right way, communicate efficiently with the target group and identify how you will position against your competitors. However, the phone for the senior market would benefit from a much more targeted and specialized approach. The strategy for seizing a market niche requires an understanding of important marketing concepts and strategies based on segmentation and. A vertical market is analogous to niche market and it focuses on identifying similar businesses with specialized or specific needs such as development of accounting software specifically for small coffee outlets or eateries. Niche tourism refers to how a specific tourism product can be tailored to meet the needs of a particular audiencemarket segment. A nichemarket is a narrow segment of a total market. This is the reason why input reduction results in the niche strategy approach. Narrowing your focus and not trying to be all things to all people can help you establish a stronger business reputation. Niche market characteristics and price behavior in general, niche markets have a few important characteristics that make their prices behave differently than in larger markets.
Niche marketing and mass marketing are probably the best marketing strategies implemented by the marketers at present. Niche marketing strategy an overview sciencedirect topics. A focussed low cost or focussed differentiation strategy, implicitly address needs of a niche market. The company tries to build the long term relationship with these small set of customers. Specific products often focus on niche markets, satisfying narrow demands around features, pricing, quality, and availability, in order to differentiate from the competition and more precisely target a group of ideal customers. The niche marketing strategy may not be suitable for longterm marketing, as niches may not give adequate business.
Unlike some other forms of marketing that target a broad range or large group of consumers, niche marketing involves targeting a very specific, well defined segment of the market. Niche marketing is servicing a portion of a unique market, or a unique portion of a common market, not already served. Niches do not exist but are created by identifying needs, wants, and requirements that are being addressed poorly or not at all by other firms, and developing and delivering goods or services to satisfy them. Focus strategy concerns itself with the identification of a niche market and launching a unique product or service in that market. Niche marketing is put advanced by philosophers and practitioners alike as a potential strategy for success for small producers, by differentiating products and aiming particular. The mass markets of previous decades have splintered into smaller market segments or niches, in which companies could be safer from cut. A niche market is a specialized market in which alimited. Locations with specific niche products are able to establish and position themselves, as niche tourism destinations.
Niche marketing definition explanation with examples. Niche marketers normally face less competition in the market, as they deal with a specific product for a small segment of the market. Niche market pricing and strategies for maintaining price. Walmart is the largest retailer in terms of revenues and number of employees globally. The niche marketing strategy constructs elements and its. This fact sheet defines niche markets, describes how producers an access them and lists issues to consider when integrating niche markets into your business planning. Some people falsely believe that the profitability and success is directly dependent on the number of potential customers targeted. The reality is that you have to find your niche market, offer a product or service that theyre demanding and get them to come to you, in order to reach a level of financial success via the internet. A more general definition of niche marketing is provided by stanton et al. Dec 17, 2017 walmart is the largest retailer in terms of revenues and number of employees globally. A niche market represents a place within the larger market comprising of a narrower group of clients with similar needs. As an artist you will need to stand out of the crowd. Thus, certain niche markets remain open for small businesses to thnve in and prosper.
Niche marketing is a marketing tactic deployed to target a specific market segment which is unique. How to use niche marketing to build a business from. Positioning strategy plays an important role in companys success. Recognizing niche marketing opportunities there is often little difference between recognizing a potential business opportunity and recognizing a niche marketing opportunity. What is a niche market niche market definition oberlo. Concentrating all marketing efforts on a small but specific and well defined segment of the population.
Galore international journal of applied sciences and humanities. Both of these fact sheets are included in this publication. Although part of a positioning strategy, niche marketing may be used as a deliberate marketing strategy to create safe havens and business opportunities for many. Though niche strategy is an acknowledged way of realizing better profits from the firms resources and actions, its longterm viability is by no means ensured. May 16, 2018 niche marketing can be defined as channelling marketing efforts and strategies towards a predefined market segment of a population. To break those definitions down, addressing a niche is about servicing very specific common needs across a clearly identified market segment that are. Philip kotler defines a niche as a portion of the market in which individuals possess homogeneous needs and characteristics and the latter are not covered by the general offer to the market. Not only does niche marketing help you get a leg up on the competition by setting you apart from the pack, but it also brings with it a valuable set of benefits that might make it the right fit for growing your business its less competitive.
Some people falsely believe that the profitability and success is directly dependent on the number of potential. For example, the market for computers is huge but there are niche markets for student computers and gaming computers, which include different types of system requirements depending on the needs of the customer. Jan 22, 2018 niche marketing strategy is a focused marketing plan unlike the target everybody strategy. Niche market is often created by identifying what a customer wants and this can be done if the company knows what the customer needs and then tries to deliver a better solution to a problem which was not presented by other firms. One of the biggest mistakes business owners make is trying to market their product or service to a large general market instead of focusing on a small niche market. Therefore, as the term implies, niche marketing refers to a marketing. You can easily see how understanding each of these mobile phones in relationship to marketing is critical. Each module will contain a pdf that you can download and videos that will help you develop a niche marketing strategy. Examples of niche markets and businesses thrivehive. Aneffective niche strategy is designed to create aestheticappeal to specific target audience by offering services orproducts to segment in. Segmenting the overall market allows you to target what you offer. Niche is a suitable place or position or activitythat suits someones talents or personality thatsomeone could carve his or her talent in aparticular field or service. On the other hand, a horizontal market should meet the specific needs of several different industries.
Niche marketing strategy isthe most effective marketing tool used to reach the targetniche market and stand out from the competition. Catering to the unique demands that arent being addressed by mainstream providers, businesses pursue niche markets as a way to build loyalty and revenue with a largelyoverlooked audience. The main difference between niche marketing and mass marketing is the size of the market they target. Difference between niche marketing and mass marketing. How to use niche marketing to build a business from the. Firms with a broad market strategy orientation often ignore small narrow segments of the market because the costs outweigh the benefits. If the product catches on and more customers enter the market simultaneously with new suppliers, then prices and quantities may remain stable. A niche market is a small part of a larger market that has its own specific needs, which are different from the larger market in some way. The niche market player is more like a big fish in a small pond, while a corporate entity in a large market is more likely to be a small fish in a big pond if there are a large number of competitors. A niche market is a specialized market in which alimited and clearly defined range of product is soldto a specific group of customers. Marketing strategy of walmart walmart marketing strategy. Niche marketingwhich first identifies a specific segment of an overall market and then tailors a marketing plan to the habits and preferences of that market segmentis an important strategy for aspiring marketing professionals to study and master.
Finally, this paper suggests how niche market strategy will help the policy maker to differentiate the tourists market and customize their service to achieve. Here are the steps to follow as you develop a content marketing strategy for your niche target audience. Niche marketing works well when you understand the market. Findings indicate that four iconic products can play significant role in the total earnings in this sector.
Apr 01, 2016 a niche market is a smaller segment of a larger market. One successful strategy we implemented was to sell kameda frost in the checkout. Niche marketing strategy is a focused marketing plan unlike the target everybody strategy. Establishing a content marketing strategy in a niche market. It targets only those customers who can relate well to the productservice. A company could market the edge display phone almost anywhere other phones are being marketed. Defining your niche market before you embark on your internet marketing strategy is important for the following five reasons.
A niche strategy is adopted for a specific narrow target, and for a less competitive environment compared to a mass strategy. This marketing tutorial discusses using niche marketing strategy with examples and advantages and disadvantages. This is the final step in feasibility analysis of the marketindustry. Niche marketing is a narrow marketing strategy, which is marketing product or service in a small segment of a market that is not being voluntarily served by the main stream product or service providers. Feb 28, 2019 a niche market is a small part of a larger market that has its own specific needs, which are different from the larger market in some way. Niche marketingaccess to online in the nichemarketing website for all thecustomers in any product 2. Developing a niche marketing strategy you will separate yourself from all of the other artists.
A niche market is a narrow segment of a total market. Niche tourism refers to how a specific tourism product can be tailored to meet the needs of a particular audience market segment. How to greatly increase your odds of business success by using a niche marketing strategy. Apr 26, 2015 the main difference between niche marketing and mass marketing is the size of the market they target. The advantages and disadvantages of niche marketing. Parrish 2010 defines the niche marketing as focusing on a specialized consumer segment or market. With this strategy, you can become the expert and attract more profitable customers to your business. Niche markets are the most attractive opportunity available to small businesses. Although part of a positioning strategy, niche marketing may be used as a deliberate marketing strategy to create safe havens and business opportunities for many companies. Aims to analyse the concept, basic issues and different methods of applying this marketing strategy. Figure 1 depicts the development of a niche marketing strategy in support of. Niche marketing is a very concentrated form of marketing. The strategy for seizing a market niche requires an understanding of important marketing concepts and strategies based on segmentation and targeting widely propounded marketing phenomenon. Sep 09, 2014 niche marketing works well when you understand the market.
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