Niche marketing actually is a targeted marketing plan or also you can say subset of the market on which a specific product is focused or identify a specific market segment. The market niche describe as the product characteristic aimed at satisfying specific market needs hobbies, occupations, or interest in social or political causes, or tailor a marketing plan to that segment’s as well as the price range, production quality and the demographics that is intended to impact. It targets its very specific and well-defined groups of population. Due to its specificities factor it is better known as concentrated or focused marketing. This is because they identify and work upon a specific segment according to its own needs and preferences and their behavior patterns.
Niche Marketing is helpful in predicting consumers’ behaviors in certain aspects. i.e. Demographics, hobbies, interests, lifestyle, ethnicity, social or political causes. All the segments are set up according to concerned features. So, the segment may be set up according to design, price, production, quality and many more like that. These segments cover almost all the commodities that may be required by any group of population at any stage of life.
Here is a word-snap how niche marketing covers the life style of an individual.
- Physical needs
- Pay premiums
- Less competitor
Niche marketing plays its vital role in small businesses that are more concerned about customers and consumers preferences because of less budget limitations that renders them to have large marketing budget or take risks. But we can’t say that niche marketing is no important for large organizations. Large organizations equally get benefit from niche marketing as they focus customers preferences and that helps them in creating many loyal customers and brand awareness is also spread. There are certain examples in our daily life where Niche marketing is helping large organizations.
- Automakers might target hybrid cars at environmentally-conscious buyers in urban areas.
- Food Businesses reach nutritionally aware consumers who will likely pay a premium for the health benefits of organic food.
- Clothing business providing apparels according to changing environmental conditions
Adopting Niche marketing in your business creates your specific mantra and aura that creates you’re an attraction for customers as compared to the non-niche marketing adopter business. It creates a sense of loyalty in customers as customers feel more special as they are considered an entity and their needs are being addressed rather than aiming on business goals only.
So, we can say that niche marketing is a big deal of benefits. It is simply plays key role in success of business. The positive impacts of this marketing are listed below.
- Customers loyalty is gained
- Increase in potential customers
- Competitive advantage
- Profit goals easy achievement
But as we know that like a picture everything has 2 sides. Bright and dark. Niche marketing has some negative effect too.
- Market crowd
- Competition easily created
- Benefits only from economies of scale that is a challenge sometimes.
A few internet marketers acknowledge niche marketing both a marketing and business technique and note that it is not for the swoon of heart. Organizations intended to determine and tap the proper niche must research and test their contribution intensively to protect that they exactly meet consumer demands inside the target market.
This is the 2nd post in the series of How To Earn Money Online