Marketing Concepts
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NICHEMARKETING.pptxOmar Twalah
Tom brennan
Marketing concepts
Monday, December1st, 2017
NICHE MARKETING
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Definition of Niche marketing
Business often target a certain portion of a market. To address certain needs of service or product which could be not be provided.
Therefore a niche market is a group of consumers or customers with specific needs.
Some of the needs which demand satisfaction include price, quality of production, and demographic demands Parrish, Cassill, & Oxenham, 2006).
Cont...,
In the field of sports a niche can be identified by targeting sports like cricket and golf through creation of channels for such sports.
This is aimed at satisfying the needs of those who are thought enthusiasts but have limited chance to access these sports.
How can one identify a niche
Identify a unique product or service in order to gain monopoly over the market niche.
Identify a product r service which is highly marketable.
A niche market chosen should be unique but available as many providers of the same may be available.
Normally retailers and wholesalers do not satisfy all the needs of the consumers.
A niche is therefore created for some business especially small scale business to start up and succeed.
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Cont...,
One must do a lot of marketing about the product or service provided in order to gain customers.
Ability to communicate through cost effective means to reach potential customers and make the product well known.
Have sufficient size by making sure that you are not constrained to just remaining small
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Appreciate competition and ensure your product serves in a unique way the needs of the consumer.
All members of a particular niche must be identifiable within the service or product providers.
Examples of Niche markets
The food industry is one of the niche markets which is on the rise because:
Huge demand for artisan foods such as junk foods like chocolate and geese.
Rise in sales of gluten –free foods.
The need for organic foods.
The internet allows online shopping which is much convenient.
Delivery means are readily available such as delivery trucks.
Micro brewing is on the increase especially in North America (Honeyman et al, 2006).
Cont....,
Catering for the elderly
People prefer to live at home especially as they grow older or retire from work.
Small business fill up the niche through:
Delivery for those who are housebound.
Landscaping and gardening home care example cleaning
Cont....,
Pet Care industry
Over 50 billion dollars are spent on pets and care.
Some of the niches that exist in this industry are:
Pet sitting
Pet training, exercise and walking
Pet grooming
Pet treatment and diet control
Why Niche Marketing for Firms?
Firms choose niche marketing in order to evade risks associated with large scale operation of businesses.
There is less revenue stream .
Advantages of Niche marketing
Little or no competition
It is possible to dominate a section of a market without being affected by threats from new entrants once one is successful
Strong relationships
It is easy to build very strong relationships with customers which is important in guarding competition.
Cont...,
Stability in business
The strong relationships build with customers ensure that there is little or no competition hence less fluctuations as long as one maintains the customers.
High profit margins
Customers rarely consider price as a major factor to determine service delivery since they believe the firm is best suited for what it produces.
Cont...,
Creates focus in business
less time is spent seeking out new opportunities or review of plan and strategy of the business. This is because the businesses are small straight forward and easy to manage hence focus is put to the customers.
Improved capabilities
Skills are gained with much speed as one works with their customers or clients, competition is therefore enhanced and the business is more stable.
Risks associated with Niche Marketing
Vulnerability to market downturns
High rates of competition
Effects of changes in the market composition
Conclusion
Sometimes thinking small could be the solution to our business success as entrepreneurs.
Market niches have provided the chance to start small and grow bigger while using less resources to market a product or service.
References
Parrish, E. D., Cassill, N. L., & Oxenham, W. (2006). Niche market strategy for a mature marketplace. Marketing Intelligence & Planning, 24(7), 694-707.
Honeyman, M. S., Pirog, R. S., Huber, G. H., Lammers, P. J., & Hermann, J. R. (2006). The United States pork niche market phenomenon. Journal of animal science, 84(8), 2269-2275.
Leisch, F. FLEXIBLE IMPLEMENTATION OF RESAMPLING SCHEMES FOR CLUSTER VALIDATION. In BOOK OF ABSTRACTS (p. 117).
