23 Advantages of Adopting a Niche Marketing Strategy
Learn about all the benefits of niche marketing and how it can help your business expand its reach and increase revenue with a niche marketing strategy.
Published on:
12 Mar 2015
Whether it’s BMW launching the X6, a fast 4×4 with the lines of coupe; Blackberry going niche as it no longer has a huge share of a mass market and must think which portion it can now own; or wearables going niche as activity tracker manufacturers see them being discarded within a year of purchase and decide to target specific niche use case groups such as marathon runners and basketball players, adopting a niche strategy has many advantages.
What is a Niche Market? Niche Market Definition:
Niche markets consist of groups of consumers within a larger market who have similar demographics, buying behaviour, preferences and/or lifestyle characteristics.
23 Benefits of Niche Marketing Strategies
Being generic is boring. Being niche almost by definition is more interesting and so, engaging.
Distinguish yourself from larger competitors. Directing potential customers away from larger competitors’ websites helps you stand out in competitive markets – for example if you were in the toy market.
By looking for emerging niche industry segments you can find something unique within your industry.
Thinking niche helps develop a culture of innovation and a focus on niche use case scenarios critical to business success.
If you’re small you can take new products to market more quickly because of lack of bureaucracy resulting in substantial cost savings.
You develop a strong emphasis on consumer insight.
You avoid direct confrontation with much bigger businesses and can concentrate in segments where smaller firms have comparative advantages.
Niche building strategies can use the network effect of social media, which implies that consumers active on social media would reinforce each other via their respective purchases.
You can use marketing and advertising to directly appeal to your niche market more effectively.
Product specialisation in a certain area or type of product allows you to develop a competitive advantage over other businesses.
Niche businesses can implement niche marketing plans that highlight areas of a product that will appeal most to a certain demographic.
Marketing strategies can be tailored to the specific product or service offered, creating a more effective overall advertising campaign.
Offering an innovative product can help a business establish itself as a leader within a larger industry.
It is easier to establish a new business or provide a fresh approach to older brands.
By gathering data on the preferences and buyer behaviours of the audience, a business can position niche marketing campaigns to appeal directly to the desired purchasers of the product.
Having a specific niche target market also allows businesses to test specific advertising campaigns and refine the strategy based on a preferred outcome.
The business can set a price point that reflects the availability or exclusivity of the product.
Going niche provides the opportunity to create new revenue streams.
Segmenting the overall market allows the business manager to target what the business can offer.
You can set clear goals and objectives such as finding new customer segments, lower marketing costs, or securing a premium pricing model.
Understanding your target niche helps determine whether a business has the resources, interests, and business infrastructure needed to meet the needs of prospective customers.
It is easier to estimate potential visitor numbers and price points.
It is easier to ensure marketing materials such as websites, brochures, emails and packaging use credible claims, motivational messages, and images to build loyalty.
We can help your business with a bespoke niche, integrated digital marketing strategy to expand your reach and grow your business.