Niche Marketing 101. Niche Marketing is type of marketing that caters to a specific group or class of people based on a particular interest, demand or need. If the two words are broken down; niche is defined as a “a unique set of market or group of people with specific demands” while marketing on the other hand, means an “promoting and communicating a product to its consumers”. These two words combined can result to one of marketing’s most utilized strategy to attract customers.
This special type of strategy isn’t uncommon; in fact, not only small and medium enterprises adapt the strategy but big businesses as well. In the case of a car manufacturer, the company may decide to target single young professionals who live in a crowded city where the roads are narrow and parking spaces are limited for their compact cars since it would be practical for them to drive smaller vehicles. The company would rather not offer it to big families who live in the suburbs since they may need a car or even a van which can carry more passengers with bigger trunks.
Niche marketing must be designed for the specific market that would be interested with the product that caters to unique needs of the market. If a product is designed to make extra baggage space for compact cars in the roof, then the compact car owners is its niche. Other car owners most especially those who own pick-up trucks may not be interested in the product and so offering it to them would be pointless. The key is to identify which people who would need a certain product and therefore making it, its niche market.
What makes niche marketing ideal is that advertisers can save a lot of money by targeting a specific niche. The cost of promoting a product to the general public would reap less benefits and sales improvements because it targets diverse people. Niche marketing maximizes the marketing budget by targeting only a number of people who has higher chances of being potential clients rather than targeting thousands of people, not knowing who will be interested or at least, give time to think about the product or service. Such strategy makes niche marketing not only cost-efficient but highly effective as well.