Niche Marketing

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Description of Niche Marketing. Explanation.


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Definition Niche Marketing. Description.

Niche Marketing is the process of finding small but potentially profitable market segments and designing custom-made products or services for them. It is similar to segmented marketing (Target Marketing), but a niche is a small distinguishable segment that can be uniquely served. Niche marketers are often reliant on the loyalty business model to maintain a profitable volume of sales.

A niche strategy refers to concentration on a small market segment with the objective of achieving dominance of that segment. Like any market, the niche segment can be defined geographical or by some other criterion such as low budget or high-tech. See Market Segmentation. A niche strategy is often followed by starting companies until they have acquired adequate resources to follow a Diversification Strategy. Typically, the small market segment, or niche, has been overlooked by larger competitors, but is still large enough to be attractive. An issue with a niche strategy when it is successful is that a large competitor might 'discover' the attractive niche and try to blow away the small company using its market power.

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Usage (application): Target Marketing, Market Segmentation, Strategy

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Usage (application): Marketing Strategy, Target Marketing, Market Segmentation

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Compare also: Market Segmentation  |  Profit Pools  |  Analytical CRM  |  Concentrated Marketing  |  Differentiated Marketing  |  One-to-one Marketing  |  Undifferentiated Marketing  |  Marketing Mix  |  Extended Marketing Mix  |  Focus Group

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