Niche marketing is a marketing strategy that focuses all marketing efforts for a specific product or service towards a particular niche or segment of the market. This is both, a marketing as well as a business strategy, as before even manufacture or procurement of the product or service is initiated, the tastes, preferences, and requirements of the niche segment is taken into consideration based upon which the utility is created.
To put it differently, this method concentrates the promotion of the commercial utility, be it a good or a service, upon a clearly specific target audience which is just a portion of the consumer population. Such ideas are often applied to those consumer segments that do not fall under the category of mass market.
Some of the best markets are those that are considered as minority or sub-segments of a mass market segment. Sexual orientation minorities, extreme geographic locations, specific age groups, particular religious groups, etc., can be the bases for formulation of successful marketing strategies for niche consumer groups. Some niche marketing examples are given in this article to clarify this concept in detail.
If the rules of the game are diligently followed, this strategy can reap more revenues for the manufacturer or service provider than any other strategy, as here, the efforts and promotional costs are focused towards just a particular niche segment.
This translates into reduced waste in promotional activities and often results in cost-effectiveness of campaigns, resulting in more customer conversions than mass marketing strategies. Here are three basic rules which, if meticulously followed, would reap rich benefits from niche marketing activities.
Identify and meet the unique needs of your target niche. Such niches have very specific requirements and failure to meet such requirements to the T may spell disaster for the marketer.
The way of approaching your niche target is very important. Your message should make your niche audience feel that the utility you offer is tailor-made for them. This would give them a feeling that someone is concerned for their specific needs and have come up with such a product which is closest to fulfilling such needs.
Test market your product/ service before plunging into a full-fledged marketing plan. Although you may have researched your niche audience extensively and have put in much efforts in coming up with a product that you feel is most suited for such a niche, it never hurts to make sure.
While looking at these examples, you'll notice that the products, utilities and their corresponding marketing promotion ideas and advertising catch phrases are extremely specific to a particular need. These needs and utilities are such that the niche audience would not mind spending some extra bucks to fulfill. Examples of some products, services and utilities that come under the purview of niche marketing are.
- Products that are meant for tackling specific physical conditions, such as dermatitis, dandruff, acne, melasma, wrinkles, etc.;
- Environment friendly products, such as zero emission cars, non-aerosolized perfumes and deodorants, etc.;
- Fitness products targeting specific areas such as abdomen, thighs, etc.;
- Fashionable clothes line for overweight, broad structured or pregnant women;
- Budget wedding planner services;
Some of the commercial products that come under niche marketing examples include the following:-
- Kosher Milk
- Timothy Hay
- Organic Food
- Commuter Airlines
These products and services cater to a very specific consumer group whose needs may not be met as efficiently by mass products. These examples clearly show why this marketing strategy is more efficient in certain cases than mass marketing strategies. The niche audience may constitute of a low percentage of the market population, but these consumers are eager buyers who would not mind dishing out a few extra bucks to get as close a solution to their consumption needs as possible.