NICHE MARKETING

•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

Market Segmentation

Market Segmentation 

—Identify the “potential and prospective consumers” in their marketing territory. Such prudent identification keeps the marketing process on up trend.

Thus, some marketing experts and researchers have described market segmentation as the strategy of “Dividing the market in order to conquer them”

As a management student and a marketer has to look for the best ROI-Return On Investment- if S/he does not do that, then it is great defeat of the object. Hence segmentation gives direct focus on the following narrated points to get more yield,

• To get more return on market-spending.
• To do niche marketing.
• Keep vibrant presence in market.
• Create brand equity in the market.
• Generate better stock turn-over-ratio.
• Register good sales performance year-after-year.
• Use of available resources in efficient way on potential & perspective consumers

These are the obvious reason why a business tycoon look for segmentation and it is very important tool of marketing to do best marketing. Now let us go into the application of the segmentation based on the various significant variables of the market.


Application of the Market Segmentation
The major market segment are based on the needs of the segments. When needs of segment is determined, the market will be targeted and products will be positioned in the market. Major Market Chart is shown below,

Basis for market segmentations
The further gridding market segmentation is based on the various variables, the significant variables are shown below,

• Geographic segmentation.
• Demographic segmentation.
• Economic Segmentation.
• Psychographic segmentation.
• Behavioral segmentation.
• Volume segmentation.
• Benefit segmentation.

Much use segmentations

• Demographic Segmentation is much in use, however it differ from product to product and subject to various market condition. 
• For the niche and brand sensitive customer the Psychographic Segmentation is used. 
• The Indian market has classified into Four Tier market based on the income, the same is depicted herein. 

Psychographic Segmentation

Psychographic is study of life style, personality traits, interest social status, society belongingness etc., One of the popular method of psychographic study is AIO Framework (Activities, Interest and Opinion) with profiling demographic explanation. Recently Stanford Research Institute has developed second popular model known as VALS ( Value and Life Style )
Now let us know what are effective element are required for the effective market segmentation. 

Effective element of market segmentation

Marketer need to do effective, productive and prudent market segmentation to fetch best results over the competitors and as well as to suit the requirement of the organization. The major criteria are,

• Identify. 
• Accessibility. 
• Responsiveness. 
• Size. 
• Nature of Demand. 
• Measurability. 
• Profitable.

*** MARKET SEGMENTATION ***

Market Analysis

—In market analysis, you will study and understand;
1.Market Segmentation
2.Target Market.
3.Positioning and Differentiation.
4.Market Research.
5.Market Information System.
6.Competition Analysis.
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 Market Segment
—A large identifiable group within a market with similar wants, purchasing power, geographical locations, buying attitudes.
—In precise, market segmentation is all about classifying of heterogeneous market into homogeneous market, in which a set of group of people/customers have a similar need and demand pattern.

Niche Marketing
—What is an attractive niche ?
—A distinct set of needs
—A premium can be charged
—Not likely to attract competition
—Gains certain economies through specialization
—Sufficient size, profit and growth potential

Local Marketing
—When the marketing mix is altered to suit the local conditions e.g., Giving a higher/ lower discount than what’s prevailing in the rest of the markets or implementing a different promotion scheme.

Individualized Marketing
—When the firm deals with each customer on a one – to – one basis
—When products are customized for the customer

Behavioral variables—Occasions – birthdays, lunch time, vacations
—Benefits – eg.travel – business, vacation, educational
—User status – non users, ex users, first time users, regular users, potential users
—Usage rate – light, medium, heavy
—Loyalty status – die hard, shifters ,switchers
—Buyer Readiness – unaware – aware – informed – interested – desire – intention to buy
—Attitude – enthusiastic, positive, indifferent, negative, hostile

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