Targeting Approaches: Niche Marketing

less recession niche marketing so niche marketing is when a business targets a subsection of the market the marketing is focused on a specific set of customer needs within a market segment for example a business might focus on targeting consumers that are willing to pay within a certain price range with an Associated quality that they want and they are of a specific demographic so niche marketing is a way for small businesses to exist in markets dominated by larger businesses but niche market is not just for smaller businesses because the language of businesses may offer niches within

their product ranges that's sometimes called product proliferation and product proliferation is basically getting the best of both worlds both worlds being the mass marketing world and they get the economies of scale that come of that but also they get to offer the choice and the specific tailoring to customer needs that niche marketing offers an example of that is Hewlett Packard where they would offer all-in-one machines to home offices or they offer specific printers and scanners to businesses now niche marketing the advantages the price or number one they could better meet customer needs because they're leading

to a higher levels of customer satisfaction and that might lead to building brand loyalty secondly brand loyalty might increase the ability to raise those prices and then get higher profit margins and thirdly niche markets suggest small production monies and if you have small production volumes that means there's less ability to get economies of scope usually the big businesses would like to do through mass marketing but if you can't get that it means that small businesses are better able to compete with those bigger larger businesses the disadvantages of niche marketing well number one a niche market

will probably have a limited opportunity for market growth and number two it's going to be the businesses reliant on that specific niche and if that specific niche is a fashion or a taste or that may die so therefore it's a high strategy number three the inability to obtain the economy of scale could be a disadvantage because it means you're going to have higher costs and if you've got higher costs it means one of two decisions or people need to be made number one you're going to have to raise those prices which may lead to lower

demand or number two you will look to maintain those prices but it might lead to lower profit margins so I hope that helps with niche marketing and I see you at the next session