Introduction – What is a Niche Marketing
Niche marketing means channeling all marketing efforts towards one well-defined segment of the population. In this article lets see what is a Niche Marketing, its stages & strategies in detail.
What is a Niche Marketing
Niche marketing is a highly targeted form of advertisement. With niche marketing, businesses promote their products and services to a small, specific and well-defined audience.
An expert is more effective than a generalist and the only way to get expertise is to focus on a small number of things.
Need for Niche Marketing
- Niche markets are an attractive opportunity available to small businesses forced to compete against the scale economies that larger competitors are able to achieve.
- In the food sector, organics, local products, heritage varieties, biodynamics, and humanely treated livestock are a few of the alternative product choices sought by specific consumer segments.
- The choice to pursue a niche strategy will not guarantee success, and, similar to any business decision, requires critical assessment.
- Exploring niche markets is representative of the set of management choices every agricultural operation faces, as it provides creative managers with a means to use new and untapped resources while creating new revenue streams.
- Doing so successfully requires significantly different management skills and marketing strategies. This fact sheet defines niche markets, outlines the steps to evaluate an operation’s current strategic position, examines how a it focus might affect that position, and finally, sketches out the important components of a niche marketing plan.
What is a Niche Marketing Strategy ?
- Know the customers. Segmenting the overall market allows the business manager to target what the business venture can offer.
- Set clear goals and objectives for what the business hopes to achieve by following a niche marketing approach: Reach new customer segments? Lower marketing costs? Secure premium pricing?
- Does niche marketing match up with the resources, capabilities and preferences of the venture?
Five Stages of Niche marketing
There are five stages to consider when attempting to address marketing opportunities. These stages are strategic planning, defining the mission and objectives, strategies and action, monitoring key projects and objectives, and organizational realignment.
1. Strategic Planning
- Strategic planning encompasses many of the issues discussed above, including the assessment of market opportunities, as well as an inventory of internal resources, values, potential strengths/capabilities (addressed in more depth below), and any weaknesses/shortfalls of the current operation.
- In short, the overall strategy provides a “road map” to attaining the objectives of the operation and its owners, while staying true to their vision and mission.
2. Define Mission and Objectives
The mission is the operation’s statement about why it exists, and sets the tone of what the company and its products’ image should be at the very highest level of the operation.
3. Strategies and Action
To begin taking specific actions, with timelines and measurable outcomes that will support the broader mission, strategies, and goals of the business, it may be most effective to develop a work plan.
4. Monitoring Key Projects/Objectives
Monitoring a firm’s progress towards its goals is one of the most crucial actions during the first years of a new (or significantly changed) enterprise.
5. Organizational Realignment
In order to clearly link the objectives and strategies of any new niche venture, it is likely that the management will have to consider an organizational realignment of resources, human capital and marketing efforts.
Examples of Niche Market
There are more examples of Niche Market. For example, within the market for women’s shoes are many different segments or niches. Shoes for vegan women would be a niche market, as would shoes for plus-sized women, shoes for nurses, and shoes for transgendered people. These are all niche markets within the larger market for women’s shoes.
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