Niche marketing

Presented by: Irum khan

Definitions

Concentrating all marketing efforts on a small but specific and well defined segment of the population. Niches do not 'exist' but are 'created' by identifying needs, wants, and requirements that are being addressed poorly or not at all by other firms, and developing and delivering goods or services to satisfy them. As a strategy, niche marketing is aimed at being a big fish in a small pond instead of being a small fish in a big pond.

Niche marketing usually refers to small or moderate size businesses or farms that produce a specialty product or service for a limited segment of the market. Market niches can be geographic areas, a specialty industry, ethnic or age groups, or any other particular group of people. The market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.

Online niche marketing

An often used technique for affiliate marketers is Internet-based niche segments of larger markets, referred to as niches, a website can be developed and promoted quickly to uniquely serve a targeted and usually loyal customer base, giving the affiliate a small but regular income stream.

This technique is then repeated across several other niche websites until a desired income level is achieved.

Examples

The dairy operation supplying kosher milk to a large Jewish population in New York City. Lexus makes a limited number of vehicles each year. It earns profit by selling these cars at very expensive prices to a very small segment of the market. A number of television channels cater to the need of a particular niche; for example, sports channels like STAR Sports, ESPN, STAR Cricket, and Fox target a niche of sports lovers.

Key Idea to Nichemanship

Specialization! Different types of specialization

Customer size Nicher Geographic Nicher Quality-price Nicher Service Nicher

Many companies practice multiple niche Always watch competitors closely Find a competitive marketing strategy that positions it effectively

A Best Practice Approach for Segmenting Product-Markets

Focusing Marketing Strategy with Segmentation, Targeting and Positioning

Finding the Relevant Segmenting Dimensions

Finding Best Opportunity to Pursue

Application of strategy

Heavy advertising directed at target segment Selective media vehicles directed to the market Use extensive sales force efforts focused on potential customers in target segment Use incentives to encourage new product sales to target accounts

Advertising and sales appeals stress generic benefits of new product type Extensive introductory sales promotion to create trial usage, but must be focused on target segment Additional product development limited to improvements or modifications to increase appeal to target segment

Give free trial of product Provide liberal return policies Use penetration pricing technique Can use market skimming, but must provide an lower end version Extend credit terms Provide trade promotion for better push strategy

Why is Nicheing profitable?

The company ends up knowing the target market so well that it meets its need better than other firm The company can charge higher because of the added value Nichers try to find one or more market niches that are safe and profitable

An ideal market is one that is big enough to be profitable and has a growth potential Niche markets are of little interest to big competitors Companies should build skills and customer goodwill to defend itself from major threats as the niche grows big and becomes attractive to competitors

Conclusion

Niche marketing is the process of finding and serving market segments, that are too small for big companies to serve them profitably defined by the volume of sales. The key to niche marketing is to find and develop a service or product that is in high demand for the small group of potential customers, but the number of these customers should be high enough, so that one can be potentially profitable.

Thank you!!!!