You must have seen some manufacturing companies that offer products and services to smaller markets instead of large ones. These businesses use niche marketing strategy. Niche Marketing is an efficient and effective strategy for small businesses that want to introduce their product or service to a specific group of the market with a lower budget and increase their chances of competing with large companies. But what is niche marketing and how can it be effective in increasing your sales and profits? Join us to answer these questions.
What is the purpose of niche marketing?
So far, we are familiar with the concept of niche marketing. In the following, we are going to examine the purpose of niche marketing.
In niche marketing, the goal is to consider the needs of a certain group of society as your production goal, so in addition to gaining customer satisfaction, you have a regular market and loyal customers for your products. Therefore, in niche marketing, you only consider the corner of the market for your activity where the competitors are less likely to be present and the chances of success and profit are higher.
What are niche marketing strategy?
In general, niche marketing strategies are explained based on the sustainable needs of customers that are influenced by things like distribution channels. Also, these strategies are developed according to the differences or cultural characteristics of the customers. In the following, we want to know what are the most appropriate niche marketing strategies.
Word of Mouth Marketing
Word of Mouth strategy tries to create a discussion about the product among the audience so you can introduce your brand to your audience imperceptibly. Although the development of this strategy is time-consuming and achieving the desired result may take time, but if it turns out successful, the output will be significant and the weight of your brand will increase with the verbal introduction of people to each other.
This strategy is about asking influential people to approve products or support the organization in the niche market. The launch of this campaign is very popular in online marketing, especially social networks, which is commonly known as influencer marketing.
The strategy emphasizes “exposing the brand to the niche market audience.” For example, advertising in instructional videos can be a great solution for your online writing platform.
What are the steps of niche marketing strategy?
In niche marketing, it is necessary to consider items such as product promotion, packaging, supplying, and the needs of the target community. For example, if you work in the field of clothing production, you will face a large market with a wide range of different tastes and ages. But if your target community is to produce clothing for children under 5, you can do better and determine the direction of supply of your products more accurately. so, the type of advertising, design, color, and packaging of your products will be in line with the interests and satisfaction of children under five.
So, in response to the question, what are the steps of niche marketing? The following steps can be introduced and expressed.
- Find and select a group of the market that has a specific and unmet need
- research about your potential Customer
- Principled planning to achieve the goal
- Ensure the feasibility of the idea in the niche market
- Design products and services based on the tastes and needs of the audience
- Choose the right and smart advertising platform
- Do as you planned
- Continuous market monitoring to ensure the continuation of strategies as well as the identification of opportunities and threats
how to choose niche marketing?
As stated, the ultimate goal of niche marketing is to sell the product to a specific target market and reduce competition with major competitors. To achieve these goals, there are several strategies, which we describe as the types of niche marketing.
different Types of niche marketing are:
Product-based niche marketing
Suppose your goal is to sell a mobile phone. But due to the low budget and high competition in this field, you may want to sell peripherals such as mobile phone cases. After some time in this market, using the profit from the sale of mobile cases, you can expand your business and operate in the market of mobile batteries and thus expand your target market. Finally, with the profit, you can get closer to your goal, which is to sell a mobile phone. So how much you downsize and how you plan to do it depends on your budget and ability.
location-based Niche marketing
In this type of niche marketing, we consider the needs of a larger neighborhood, region, or area and try to provide products or services to solve a problem or meet their needs. For example, the idea of establishing a restaurant of healthy and vegetarian food, near the residence of people who are old and have a good income and care about the health of food, may be appropriate.
Niche marketing based on people’s circumstances
One of the best strategies to enter the market is to choose a niche based on people’s circumstances. Consider, for example, beauty salons that offer laser services among all available services. Or a company that sells the right tablet for elementary school students instead of the right tablet for everyone.
price-based Niche marketing
In this type of niche marketing, products are offered at very high or very low prices. Depending on the price of the products, our target market is also a certain number of people. For example, consider some expensive and luxury brands of perfumes, jewelry, and… only affluent and special strata of society can afford these products. all of these are examples of niche price marketing.
What are the advantages and disadvantages of niche marketing?
now, we will examine the advantages and disadvantages of niche marketing. As mentioned, marketers in niche marketing choose groups whose needs are not well identified or met by existing markets. Although niche marketing has many positive features, it also has problems and disadvantages that we will address in this section.
What are the advantages of niche marketing strategy?
- Less investment: In niche marketing, marketers need less investment because they have to produce limited goods.
- not risky: Because the activity takes place in a small segment of the market, less risk threatens our business.
- Less competition: Niche marketers are usually faced with a less competitive environment because they are dealing with a specific product for a small segment of the market.
- More profit: In niche marketing, marketers of the target group know the target well and will be able to meet their needs better than other companies. So more profit will be waiting for them.
- Brand Loyalty: In niche marketing, customers may continue to repeat their purchases or recommend your brand to others.
- Reputation: Your niche marketing can gain a name and reputation in the market and succeed.
What are the disadvantages of niche marketing?
But what are the problems and disadvantages of niche marketing? The following items are the disadvantages of niche marketing.
- A niche marketing strategy may not be suitable for long-term marketing.
- large corporations may attack niche marketing campaigns.
- If the organization’s only sales strategy is niche marketing, its chances of survival may be really low.
Examples of niche marketing
So far we are familiar with the concept of niche marketing and what are the advantages and disadvantages of niche marketing. Here are some examples of niche marketing.
For example, a company that produces men’s formal wear, and in particular, a suit, can be a good example of niche marketing. The company’s customers are men who want to buy a suit. But how old are they? What is their purpose in buying a suit? And other items that need to be investigated.
Another example that we can mention i is a company that produces baby clothes. Which produces clothes especially for children under 5 years old. The customers of this product are children and their parents. What plan does the target community choose? Which color do they prefer? What type of packaging is more suitable? And so on. there are many items that need to be investigated.
In the past, niche marketing was not very popular. But when some businesses saw that they could not compete with large companies, they chose a smaller target market so that they could both make a brand for themselves and attract more customers.
In this article, we tried to find the right answer to the question “What is niche marketing” and in addition, examine the goals, strategies, advantages and disadvantages of niche marketing.