Marketing
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.
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4 Key excerpts on "Niche Market"
eBook - PDFKnowledge-Based Marketing
The 21st Century Competitive Edge
- Ian Chaston(Author)
- 2004(Publication Date)
- SAGE Publications Ltd(Publisher)
Knowledge-based Marketing 32 Niche MarketING A niche (or micro-segment ) is a very small group of customers who have very specific product needs. To service a niche the successful firm will usually be required to be able to undertake specialist technical operations in the pro-duction of output and execute very focused marketing tasks. Success is often dependent upon the fact that within the niche the firm is the sole supplier of the product or services. Traditionally Niche Marketing is the strategy adopted by small firms seeking to avoid confrontations with large, national brands. In some cases these small firms have been able to enter a market niche because it con-tains a group of customers whose needs are being ignored by larger firms. For example some consumers only want to purchase extremely fresh vegetables and fruit. No supermarket distribution system can really cost effectively satisfy this type of market need, thereby leaving a market gap available to small farms or horticulturists to open a ‘farm gate’, ‘pick your own’, retail outlet. In the case of many small businesses, niche identification is an intuitive decision made by the company founder based upon tacit knowledge acquired by observing a market scenario or having spent many years work-ing for a large firm in a specific industrial sector (Chaston 1999a). A significant proportion of small firm niche players continue to exist for many years servicing the specialist requirements of a specific customer group. In some cases this is because the lifestyle aspirations of the owner/manager are such that he or she is adverse to further expansion of the business operation. Red Mills Ltd Exceptions to any marketing theory generalisations can always be found. One is provided by the UK snack maker Red Mills Ltd ( Grocer 1996). The company’s origins were in the provision of low cost snacks for children.
eBook - PDF- O. C. Ferrell, Michael Hartline, (Authors)
- 2018(Publication Date)
- Cengage Learning EMEA(Publisher)
• may be necessary when customer needs are similar within a single group but their needs differ across groups. • involves two options: the multisegment approach and the market concentration approach. Niche Marketing: • involves focusing marketing efforts on one small, well-defined market segment or niche that has a unique, specific set of needs. • requires that firms understand and meet the needs of target customers so completely that, despite the small size of the niche, the firm’s substantial share makes the segment highly profitable. Individualized segmentation approaches: • have become viable due to advances in technology, particularly communication technology and the Internet. • are possible because organizations now have the ability to track customers with a high degree of specificity. Chapter 5 • Customers, Segmentation, and Target Marketing 149 Copyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. • allow firms to combine demographic data with past and current purchasing behavior so they can tweak their marketing programs in ways that allow them to precisely match customers’ needs, wants, and preferences. • will become even more important in the future because their focus on individual customers makes them critical to the development and maintenance of long- term relationships. • can be prohibitively expensive to deliver. • depend on two important considerations: automated delivery of the marketing program and personalization.
eBook - PDFStrategic Business Planning for Accountants
Methods, Tools and Case Studies
- Dimitris N. Chorafas(Author)
- 2006(Publication Date)
- CIMA Publishing(Publisher)
By so doing, it provides management with a certain degree of pricing power, because competition is low and, in all likelihood, the product will be fairly advanced. Notice, however, that a niche can also be served by established products for which there is demand, but nobody wants to make in quantity – or can compete price-wise. A niche strategy may fail because of lack of clear understanding of what a niche is and is not ; defective product/market orientation; pricing that is not affordable to the user; or substandard preparation of: Product(s) appealing to the niche, and People selling the niche products. Other reasons for failure (which also apply with unique products) are efforts dis-connected from market trends, and/or insensitivity to shifts in the niche, its con-tents, its customers, and what it takes to appeal to them. The good news is that, other things being equal, the niche will not prove to be a commercial disaster, though it may eventually become extinct. But the way to bet is that: The investment will not be so big, and The company can pull out of the niche without losing too many feathers. Business conditions are different, with an orientation towards unique product. By definition, a unique product is one competitors are not ready to offer; typically one somewhat in advance of its time or requiring special skills. A unique product strat-egy calls for long, sustained commitment to innovation; it involves (in many cases) a relatively moderate risk. Policies aiming to capitalize on a unique product tend to: Redefine the current market, and Create a new customer base. Strategic Business Planning for Accountants 401 A unique product strategy may also try to hold on to the existing customer base through special projects. In this case, assumed risk increases significantly. Talking from my experience at AEG Telefunken, and other companies, many ‘specials’ end up recorded in red ink. Moreover, steady innovation is a demand-ing concept.
eBook - PDF- Greg Elliott, Sharyn Rundle-Thiele, David Waller, Ingo Bentrott, Siobhan Hatton-Jones, Pete Jeans(Authors)
- 2020(Publication Date)
- Wiley(Publisher)
In this chapter, we will explore this broad categorisation further and examine how we can better describe and segment the market. Because consumers and businesses have different needs, wants and demands, it is impossible for most organisations to successfully appeal to the entire market. Instead, the organisation typically identifies those parts of the total market to which it can offer the most value. Market segmentation enables the organisation to form a strategy for a group, or segment, that has common features, rather than try to market to everyone. The organisation makes use of its knowledge of these market segments to develop the most effective marketing mix for each. This approach is known as the target marketing concept and it is fundamental to marketing — identifying smaller, more targetable market segments, then tailoring the marketing mix to best appeal to those segments. We discuss how businesses can best segment consumer and business markets for their particular purposes. Once the market has been segmented based on relevant variables, the organisation assesses the potential of each segment in order to decide which segments to target. We conclude the chapter with a discussion of how to position products relative to competitors in each target market. 6.1 Knowing the market LEARNING OBJECTIVE 6.1 Explain the broad concept of a ‘market’. In the introduction to marketing chapter, we defined a market as a group of customers with heterogeneous needs and wants. This is a very broad definition. In the chapters on consumer behaviour and business buying behaviour, we saw that the overall market could be broken down into consumer markets and business markets. Business markets could then, for example, be further broken down into reseller markets, producer markets, government markets and institutional markets.
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