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. Find out more.