What is a Market Nicher ?

What is a Market Nicher? Definition Rules & Strategies

Market Nichers are the marketers or companies who make specific products and/or services which made for specific demand of customers which are not met by otherwise available products. Let’s see what is a Market Nicher in detail.

What is a Market Niche?

A niche market is a small part of a larger market that has its own specific wants and needs, which are different from the larger market in some way.

Meaning of Market Niche:

A niche market is the subset of the market on which a specific product is focused.

What is a Market Nicher?

• They produce highly customized and also specialist products/ services which serve a narrow market range. In this type of market strategy, though the volume is less the profit margin is high.
• Instead of being a market follower in a large market some firms choose to be the leaders in a small market, or market “niche” that doesn’t attract the attention of the larger firms.
• The key to being a successful market nicher is specialization, which can be focused on: the end-user (specializes in serving one type of final customer), the customer size (concentrates in selling to small, medium or large customers), specific customers (limits its offer to one or a few major customers), a geographic area (sells only in a certain place, region, area), a product or product line (produces or carries only one product or product line), the quality-price ratio (operates at the low or at the high quality end of the market), the service (offers services not available from other firms) and also the channel (serves only one channel of distribution).
• Market Nicher can get to know their customers well enough to meet their needs much better than competitors while making a high profit margin. However, to increase their survival prospects, market nichers need to be strong in two or more market niches.

Rules for Market Nicher

• Meet the market’s unique needs – This may require consumer and/or market research
• Say the right thing – Develop promotional materials targeted at the motivations and also interests of the consumer segment
• Test market-  Start small with minimal capital investment, which may require partnering with established retailers or partners

What is a Market Nicher Strategy ?

The following are some Market Nicher Strategies

Market Nicher Strategies

• A niche is a small market whose needs are not being well served by the existing products. A niche may be identified by dividing a segment into sub-segments or by defining a group with a different set of characteristics who may look for a special combination of benefits of attributes in the product. Some firms find it profitable to identify and also serve the special unmet needs of small market segments (niche).
• They can thus avoid direct confrontation with the market leader by focusing on areas not targeted by the leader.
• Using the niche strategy one assumes that people or organizations within a product market will vary as to their responsiveness to any marketing program.
• The objective is to identify two or more subgroups within the product market so that the people or organizations comprising each subgroup will response similarly to a marketing offer designed to meet their particular needs.

Selection of Niche:

The following steps are involved in selecting a niche are :

• Step: 1- Decide how to form niches in the product market.
• Step:2 – Describe the people/organizations in each niche.
• Step:3 – Evaluate target market alternatives.
• Step:4 – Select a target market strategy.

Finding and Describing Product Market Niches

• By using a niche strategy, a company may gain worthwhile advantages over a mass approach. Advantages include higher profitability and strength over competition through more effective use of the firm’s capabilities and also limited resources.
• By selecting niches, management can gain greater customer responsiveness from effort expended than if the firm directs the same marketing effort to all people or organizations in the market.
• Management must somehow identify possible niches and then, for each niche of interest, determine which marketing program will obtain the most favorable profit contribution net of marketing costs. Since there are many ways to divide a market and several marketing program combinations that might be used for each niche, finding the optimal target market and also marketing program strategy is probably impossible.

Forming Niches:

 In deciding how to form niches, there are two important issues to be considered which are as follows:

• Should niches be formed by aggregating individuals or organizations using a grouping approach or should this be done by breaking apart a product market?
• What factor(s) should be used to define niches.

Niche Specialization:

In order to be successful in nichemanship a firm should be guided by the concept of specialization. There are quite a few specialist roles one of which may be played by a firm in order to be successful in nichemanship. The specialist roles are discussed below:

• End-User Specialist
• Vertical Level Specialist
• Customer-Size Specialist Role
• Specific-Customer Specialist Role
• Geographic Specialist Role
• Product or Product-Line Specialist Role
• Product-Feature Specialist
• Job-Shop Specialist Role
• Quality / Price Specialist Role
• Service Specialist Role

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