Niche marketing strategy is a focused marketing plan unlike the target everybody strategy. It is a highly specialized market segment, which targets a niche of particular enthusiasts and aims to survive among the competition from numerous super companies. Niche marketing strategy and firm success international journal. Niche marketing throws up a unique set of challenges that are not in general addressed by common marketing literature, they include.
Normally, small firms enter in niche markets, because the niche segment may be so small that. Download our free marketing plan and calendar templates to help you hone your niche marketing strategies. Aug 24, 2018 niche marketing is the process of marketing to specific niches. Low competition and our own set of loyal customers sounds wonderful in principle but the reality is not quite that simple. Niche marketing is a useful approach, which can help. Pdf the niche marketing strategy constructs elements and its. Niche marketing is a targeted marketing plan that centers on a specific portion of the market that possesses a higher potential in connecting with a given product or service offered. This paper aim to explore that niche marketing strategy are beneficial for. Include longtail queries as well as high commercial intent keywords, optimize your campaigns for mobile and be sure to make use of the appropriate ad extensions, and get your message in front of the right people. Each of these strategies was developed from a different perspective, and little attention was paid to the. May 16, 2018 niche marketing can be defined as channelling marketing efforts and strategies towards a predefined market segment of a population.
In a niche strategy, the consumption of resources is less than with a mass strategy. According to linda falkenstein, author of nichecraft. Literarily, a niche refers to a comfortable position. Niche marketing and relationship marketing are two of the most talkedabout methods. Marketing niche strategy is also created through exclusive rights such as brands, trademarks, patents etc for example under the main brand a niche brand can be created to serve special customer needs e. The differentiated marketing essentially requires market segmentation and incurs a higher production cost, inventory cost and marketing costs. Niche marketing often focuses on market segments that are poorly targeted, or not targeted at all. Marketing strategies an overview marketing strategy is a broad plan for achieving marketing objectives. This marketing tutorial discusses using niche marketing strategy with examples and advantages and disadvantages. Jun 01, 2010 most companies do this for specialization and to remain competitive. Niche marketing is a very concentrated form of marketing.
Marketers usually identify niches by dividing a segment into sub segments or by defining a group, whose needs are not well served by the existing marketers. Niche marketing can be defined as channelling marketing efforts and strategies towards a predefined market segment of a population. 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. Instead of marketing to everyone who could benefit from a product or service, this strategy focuses exclusively on one groupa niche marketor demographic of potential customers who would most benefit from the offerings. We propose that a proactive niche market strategy employs five key activities. Hence all the marketing efforts are directed towards this target only.
Proactive niche market strategies are examined in three global swedish steel firms. Jan 22, 2018 niche marketing strategy is a focused marketing plan unlike the target everybody strategy. Niche strategy definition marketing dictionary mba. Pdf essential elements for a niche marketing strategy include positioning, profitability, distinctive competencies, small market segments.
Therefore, as the term implies, niche marketing refers to a marketing strategy that is focusing on relatively small market in the market at large. Niche marketing may, however, also be used as a proactive strategy. This paper outlines the steps to evaluate an operations current strategic position, examines how a niche market focus might affect that position, sketches out the important components of a niche marketing plan. It begins by defining the terms niche and niche markets including their origin in evolutionary biology. This is the reason why input reduction results in the niche strategy approach. There is one important thing to understand that niche does not exist, but is created by smart marketing techniques and identifying what the customer wants. This fact sheet will discuss price behavior and how prices change over time, strategies small producers may consider to maintain their competitiveness in a market, and how to examine the feasibility or expected profitability of a potential market andor product. Niches do not exist but are created by identifying needs, wants, and. Still, the choice to pursue a niche marketing strategy will not guarantee success, and, similar to any business decision, requires critical assessment. The niche market strategy may be small in size compared to its larger counterpart but competition could be lesser, marketing can be more focused and hence easier to develop business. The current status of this strategy is also being analysed in the work.
The company tries to build the long term relationship with these small set of customers. Niche marketing is often used as a defensive strategy. Sep 09, 2014 niche marketing defines product features, production qualities, demographics and price range to satisfy specific marketing needs. Pdf essential elements for a niche marketing strategy include positioning, profitability, distinctive competencies, small market segments, adherence. Marketing strategies for the small sawmill lumber producer. The handbook of niche marketing features respected authorities insightful research and valuable discussions on a variety of marketing issues, such as. This allows a brand to zero in on strategically selected channels and media platforms that can help the company reach its respected audience at a better rate. A marketing strategy that is well articulated will enable one to focus on marketing activities to achieve the organisational goal. The niche marketing strategy constructs elements and its. Oct 21, 2019 a business niche is a specialized or focused area of a broader market that businesses can serve to differentiate themselves from the competition. This publication is provided in pdf format for educational use. Findings research results suggest that niche marketing is an effective strategy for countering price competition in a mature industry and can use a niche market strategy. A niche strategy is adopted for a specific narrow target, and for a less competitive environment compared to a mass strategy. Abstract the paper presents an introduction to using niche marketing techniques to improve the operation of public transport.
Niche marketing is a term often used to describe this process. It targets only those customers who can relate well to the productservice. This paper presents the pilot survey result for the study of effect of marketing strategies construct entrepreneurial, guerrilla, relationship, ambush, viral and niche marketing, on firm. To analyze the marketing strategies adopted by bangladesh parjaton. Since the demand of these customers is unique and can be fulfilled only by the niche products, the price charged is significantly higher than that of the costs. Niche marketing is an advertising strategy that focuses on a unique target market. You can either focus your entire brand on a single niche. Niche marketing definition explanation with examples. Find and market to your ideal collectors, the people that are interested in purchasing your artwork. Concentrating all marketing efforts on a small but specific and well defined segment of the population. Eachstakes outadifferent market position a broad crosssection gi of buyers gi iii a narrovlf buyer segment or market niche overall lovvcost provider strategy broad diherentiation strategy focused lovvcost strategy lovlfercost differentiationtype of competitive advantage being. Potential strategies as niche markets tend to exhibit inelastic demand, companies engaged in niche marketing need to determine a strategy to keep competitors from entering the market, or they must continue to increase demand for their product if they wish to keep prices and sales stable andor growing. More information about market segments can be found in wemc fs.
Pdf this paper aim to explore that niche marketing strategy are beneficial for smaller firms, as they dont have much resources for. The popular term for concentrated marketing is niche marketing. Loyalty, monopoly, narrow market segment, niche marketing, submarket. Niche market pricing and strategies for maintaining price. According to thilmany2012, niche essentials elements for a niche marketing strategy include segmentation, and positioning. Niche marketing is defined as channeling all marketing efforts towards one welldefined segment of the population. Pdf applying niche marketing strategies to public transport. The advantages and disadvantages of niche marketing. Why you should have a niche marketing strategy xtmotion. Apr 26, 2015 niche marketing and mass marketing are probably the best marketing strategies implemented by the marketers at present. Some people falsely believe that the profitability and success is directly dependent on the number of potential customers targeted. This is the reason why market nichers have high profit margin.
A niche strategy affords sales professionals the opportu. The niche marketing strategy constructs galore international. This unique educational resource reveals the theories, the strategies, and reallife case studies of niche marketing success and why it is on its way to becoming the next global marketing wave. 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. According to ceg worldwide, 70 percent of top financial advisors i. Difference between niche marketing and mass marketing. Exploring proactive niche market strategies in the steel. Using your specialness to focus your business, corner your market and make customers seek you out quoted in, a niche market strategy does not appear or develop on its own, it has to be skillfully created by an. 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.
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