subject: Niche Marketing And It Advantages [print this page] Niche marketing is definitely riskyNiche marketing is definitely risky. It relies on a very small target market and focuses on very limited products and services. However, a lot of people still find niche specific marketing very profitable. In fact, even bigger companies still employ such a strategy. Here are some of the reasons why niche marketing is a good choice for some.
Less competition...
Because niche specific marketing focuses on specific or particular services or products, niche marketers address very specific needs. As a result, you have less competition to worry about. The specialized nature of niche markets count more than the ability of the company to address every need.
For example, instead of coming up with a company that sells cars, establish a company for cars that run on water or hydrogen. This makes your company very specific and, at the same time, a significant contender to the big car manufacturing companies. Because your products are unique, you can take a good chunk of the car-buying market without the big boys doing anything about it.
Less expensive startup costs...
Because the services and products of a specialized company are limited, startup costs need not be too expensive with niche marketing. This is one of the greatest advantages of being a niche marketer. There is basically no need for you to invest much on a lot of things. Instead, if you focus on your niche, you wisely allocate funds for specialization. In contrast to larger companies that offer a broader range of products, smaller and more specialized companies rely on expertise to gain customers and presence in the market. Theres no need for you to come up with a solution for all types of problems. As a niche marketer, all you need to do is to focus on one and then devote all efforts into mustering each and every aspect of that particular choice of yours.
Customer selection and satisfaction...
Although niche marketing limits the number of services or products that a particular company offers, the specialized nature of the products and the services significantly increase the chance of meeting customer satisfaction.
Because people that seek out specialized companies look for specific services that these companies offer, encounters between customers and company rarely happen by chance. More often, when they do meet, they quickly come to terms to do business. This not only decreases inefficiency by eliminating passersby (especially from those that do not make good business), but it also provides a way to gain your target markets loyalty and confidence. Because of this, niche marketing becomes a particular type of marketing that depends more on loyalty rather than on bulk of customers.
