Niche Market
A niche market refers to a specific, specialized segment of the market that caters to a unique set of needs or preferences within a larger industry. Businesses targeting niche markets focus on serving a distinct customer base with products or services tailored to their specific requirements. By concentrating on a niche market, companies can differentiate themselves from competitors and build strong customer loyalty.
7 Key excerpts on "Niche Market"
eBook - ePub- Ritche Rockwell(Author)
- 2021(Publication Date)
- Bibliomundi(Publisher)
...Chapter 1 – Fundamentals of Niche Markets Introduction To Niche Markets Through Social Networking Everyone is familiar with the concept of a market, where a variety of goods, products and services are traded. A Niche Market is simply a subset of the market with a specific product focus aimed at meeting the demands of a particular target group, such as the price range, product quality and the demographics. In fact, basical y any product that is sold can be put into a specific Niche Market. However, because some products are aimed at a general target group because of the focus of the market subset (e.g. price), these are what is commonly known as the mainstream niche or high demand markets. Not surprisingly, due to globalization and a world view of modern business, Niche Markets have found a very important advantage in the advent of the Internet. Internet-based niche segments of larger markets can be tapped into by savvy entrepreneurs by the use of technologies to build websites, create blogs and other social network based marketing strategies. This al ows the Niche Marketer to rapidly gain access and exposure, thereby better targeting their customer base to build loyalty and in turn a steady and passive income stream. The reproducibility of Niche Marketing al ows the technique to be repeated across several other niche websites depending on the target income level one would like to generate. As many niches become saturated with marketers, and the market share is divided amongst increasingly more competitors, it is important to find smal er and new undiscovered niches...
eBook - ePubHandbook of Niche Marketing
Principles and Practice
- Art Weinstein(Author)
- 2013(Publication Date)
- Routledge(Publisher)
...In Niche Marketing a company focuses on a market niche exhibiting the aforementioned characteristics. In such marketing we can make a distinction between two approaches: To see Niche Marketing as a creative process, as Chalasani and Shani 10 termed nichemanship, which is “a process of carving out a small part of the market whose needs are not fulfilled. By specialization along market, customer, product or marketing mix lines, a company can match the unique needs.” To see Niche Marketing as the last stage of segmentation, taking place in the following sequential stages: segmentation, targeting, positioning, and niching. 8 A more general definition of Niche Marketing is provided by Stanton et al. 11 as a method to meet customer needs through tailoring goods and services for small markets. Figure 1.1 depicts the development of a Niche Marketing strategy in support of the first approach. Niche Marketing versus Segmentation It is often assumed that segmentation is a starting point in Niche Marketing. Chalasani and Shani, 10 however, hold a different view. According to them, “segmentation is the process of breaking a large market into smaller pieces. It is a top-down approach.” They further state that “Niche Marketing is a bottom-up approach where the marketer starts from the needs of a few customers and gradually builds up a larger customer base”; this is in contrast to breaking up a market into smaller markets. In this respect Niche Marketing may be termed as inverted or reversed segmentation...
eBook - ePubSegmentation Strategies for Hospitality Managers
Target Marketing for Competitive Advantage
- Ron Morritt, Art Weinstein(Authors)
- 2012(Publication Date)
- Routledge(Publisher)
...Chapter 4 Niche Marketing for Hotel Managers INTRODUCTION The focus of this chapter is Niche Marketing as a strategy for smaller resort hotels (<125 rooms), but the strategic implications of Niche Marketing are generalizable over the entire hotel industry. The tourist hotel market in Jamaica, not unlike the global market, is involved in a consolidation phase associated with the later stages of a mature market. There is fierce competition, commoditization of products, price cutting, declining revenues, and declining profitability. Morritt (1995) has argued that that the key to smaller hotels competing successfully in this market is related to three programs: market segmentation, strategic alliances, and automation. This chapter will focus on Niche Marketing as a segmentation strategy for smaller hotels. A Brief Overview of Niche Marketing Strategy Market segmentation is the process of classifying customers and prospects into groups with similar needs and purchasing behavior (Kotler, 1991; Weinstein, 1995). Effective segmentation allows the firm to select those groups that can be served most profitably and positions the firm to effectively service the needs of those groups. Niche Marketing is perhaps best defined by Dalgic and Leeuw (1994): We may conclude that Niche Marketing could be defined as positioning into small, profitable homogeneous market segments which have been ignored or neglected by others. This positioning is based on the integrated marketing concept and the distinctive competencies the company possesses. How does NM lead to competitive advantage? • If you have selected carefully, there is little competition for your target niche...
eBook - ePubMarketing that Moves People
How real estate agents can build a brand, find fans, land leads, and communicate convincingly
- Shelley Zavitz(Author)
- 2022(Publication Date)
- Harriman House(Publisher)
...If the phrase ‘one size fits all’ was actually true, the phone lines of Amazon wouldn’t be flooded with complaints, Nike wouldn’t have 1,500 design departments dedicated to each sport, and I wouldn’t own 14 awkwardly-fitting baseball caps. You would be hard-pressed to find any high-functioning company that offers a service that appeals to every single person in the world perfectly. It’s impossible. What’s true of the human race is that the heaven of one is hell to another. Micro marketing means to concentrate your resources and marketing on reaching a select group of people. You’ve probably heard the term ‘Niche Marketing’. It’s one of the most important things to understand and implement in your marketing strategy so let’s spend some time on it. Niche Marketing means to choose a group of like-minded, like-habited, sometimes geographically-linked people, and deliver a service or product based on their wants and needs. (An overly simplified explanation, perhaps, but that is generally what it is.) It’s the secret to constructing a sustainable campaign. Committing to one segment or group of people will help you thrive in future years. The reasons you want to start Niche Marketing are to: Create deeper engagements. Deeper means more committed and ready to buy or sell. Receive real feedback that enables you to refine your systems. Receive real information that offers insight on how to prepare for the future. Get results based on your budget. Create high-value clients. Create a personalized experience. Receive praise from clients who feel seen by you and thereby refer you. This is why defining the target market was so important first. Now, not only are you going to know the wants and needs of your market, you are going to become the pro of all things related to it. The goal is to have your brand become synonymous with the solution of their wants and needs. Spend some time defining your macro and micro markets...
eBook - ePub- Richard M.S. Wilson(Author)
- 2010(Publication Date)
- Routledge(Publisher)
...Many strategists with small brands often deceive themselves by believing they have a niche product. The reality may in fact be very different, with the product being a vulnerable number four or number five brand in a mass market. To clarify whether a brand is a true market nicher, three questions can be posed: Do consumers and distributors recognize the niche or is it simply a figment of the overactive imagination of a marketing planner? Is the niche product or service really distinctive and does it have a strong appeal to a specific customer group? Is the product capable of being priced at a premium and does it offer the scope for above-average profit margins? Unless the answer to all three of the questions is ‘yes’, it is unlikely that the brand is a true nicher, but is instead simply a poor performer in a far larger market segment, something that leads to the idea that, although it is relatively easy to find a niche, the real secret is to ensure that it is of the right size – large enough to be profitable, but not sufficiently large to attract the far larger players, at least in the early days when the organization is trying to establish a market position. Although there is a temptation to see Niche Marketers as small companies, the reality is that many niches are occupied by far larger organizations that have developed the skills of operating with small-volume products. Given this, the characteristics of the ideal niche are: It should be of sufficient size to be potentially profitable It should offer scope for the organization to exercise its distinctive competences It should/must have the potential for growth. Other characteristics that favour niching would be patents, a degree of channel control, and the existence of customer goodwill. 9.15 Product Positioning: The Battle for the...
eBook - ePub- George Stonehouse, Bill Houston(Authors)
- 2003(Publication Date)
- Routledge(Publisher)
...Different segments need not always be different in every respect – it could be that some standard products can be promoted differently to different segments because of certain similarities or common characteristics. In other cases, the product will be substantially or completely different, and marketing to each segment will necessitate a distinctive approach to each one. Concentrated marketing An extreme form of differentiated marketing is concentrated marketing, where an organization's effort is focused on a single market segment. In return for giving up substantial parts of the market, an effort is made to specialize in just one niche, and so we may see this referred to as ‘Niche Marketing’. This approach offers the advantage that the organization can gain a detailed and in-depth knowledge of its segment which, in turn, can enable an ever-improving match between the product and the customer requirement. The disadvantage relates to the extent to which the company may become dependent upon the one segment it serves. Any negative change in the demand pattern of the segment will leave the supplier vulnerable because of the narrowness of its market portfolio (see later in this chapter). A company operating with a large product range in many markets will typically use a multi-focus strategy – a combination of the above. Product positioning Product positioning is the way in which a product or a brand is perceived in relation to preferences of segments of the market, and in relation to competitive products. Thus, in a particular alcoholic drinks market, attributes thought to be important by customers might be alcoholic strength (weak versus strong) and taste (bitter versus sweet). There may be groups of customers with preferences for any combinations of these attributes, and a range of competing products that by means of the products themselves and their advertising and promotion are seen to occupy a particular position...
eBook - ePub- Paul Reynolds, Geoff Lancaste(Authors)
- 2013(Publication Date)
- Routledge(Publisher)
...5 Market segmentation, targeting and positioning of marketing 5.1 Introduction Now that we have a better understanding of the nature of marketing, we can examine the subject in more detail. A logical starting point is an examination of customers, and this is the theme of this chapter, along with the next chapter, which deals with their purchasing behaviour. Market segmentation can be defined as: The process of breaking down the total market for a product or service into distinct sub-groups or segments, where each segment may conceivably represent a distinct target market to be reached with a distinctive marketing mix. Definition Market segmentation can be defined as: the process of breaking down the total market for a product or service into distinct sub-groups. Marketers realise that, to improve their opportunities for success in a competitive market environment, they must focus marketing effort on clearly defined market targets. The intention is to select those groups of customers that the company is best able to serve in such a way that pressure from competition is minimised. The sequential steps in this process are segmentation, targeting and positioning. In this chapter we examine each of these steps, showing how they can be used to improve the effectiveness of marketing decision-making. There are increasingly more segmentation bases available, which means that targeting and positioning strategies are becoming more meaningful. 5.2 The need for segmentation We have seen that the essence of the marketing concept is the idea of placing customer needs at the centre of the organisation’s decision-making. It has also been said that the need to adopt this approach stems from a number of factors, including increased competition, better informed and educated consumers, and, perhaps most importantly, changing patterns of demand...
