•A Niche is a more narrowly defined group, typically a small market whose needs are not well served. Marketers usually identify Niches by dividing a segment into sub – segments or by defining a group seeking a distinctive mix of benefits.
For example:The segment of heavy smokers includes those who are trying to stop smoking & those who don’t care.
Whereas segments are fairly large & normally attracts several competitors, Niches are fairly small & normally attract only one or two. Larger companies, such as IBM, lose pieces of their market to Niches: Dalgic labeled this confrontation “guerrillas against gorillas.” Some larger companies have therefore turned to Niche Marketing, which has required more decentralization & some changes in the way they do business. Johnson & Johnson, for example, consists of 170 affiliates many of which pursue Niche markets.
The prevalence of Niche - & even “microniche”-marketing can be seen in the media. Witness the proliferation of new magazines targeting specific niches divided and sub divided along lines of ethnicity, gender, or sexual orientation . Is a New York – based life style maxim for black gay men. There’s Aqua, a bi – monthly for divers & snorkelers & Miami based quince, a magazine just for Hispanic teenage girls. As the media’s gaze turns ever inward, there is Stephen Brills content a new consumer magazine about the media.
Niche marketers presumably understand their customers needs so well that the customers willingly pay a premium. Ferrari gets a high price for its cars because loyal buyer feel no other automobiles comes close to offering the product service membership benefit bundle that Ferrari does.
An attractive niche is characterized as follows:
The customers niche have a distinct set of needs, they will pay a premium to the firm that best satisfies their needs, the niche is not likely to attract other competitors, the nicher gains certain economies through specialisation, and niche has size profit and growth potential.Both small and large company can practice niche marketing.
I hope this short blog gave you the idea about Niche Marketing. Thanks for Reading
