Niche Marketing, otherwise known as Market Segmentation, has grown quite popular in the past few years among online entrepreneurs. This is a marketing strategy that involves dividing the market into distinctive segments or subsets according to their particular needs or their behavior. Since each subset, or niche, is very internally homogeneous about their needs and their attitudes, marketers expect them to react towards a particular marketing campaign in the same manner. In other words, the people in the niche are bound to have the same emotions towards a particular service or product being promoted and would thus be easier to appeal to them rather than appeal to the entire market.
A lot of internet marketers have found niche marketing to be a great tool in promoting products and services online. However, like any marketing strategy, niche marketing has its own array of pros and cons. Understanding these pros and cons is essential when deciding whether or not to use niche marketing. Knowing these advantages and disadvantages can also help an existing niche marketer to have much control on his or her operations, by knowing what to expect with such a marketing technique.
The Pros of Niche Marketing
Niche marketing has a lot of noteworthy benefits, otherwise it would not gain the popularity it has achieved today. First of all, it allows businesses to focus on a particular segment of the market and get more profits from it. The internet is vast ocean of consumers and it would be virtually impossible to please each and every person swimming in it. That would be like swimming to each and every part of the ocean to promote a particular product or service.
Common sense would tell you that that is a very ineffective method because it would take a lot of time and energy just to get to a small part of the big market. What is more practical is to approach a sector that is manageable and could respond quickly to the promotional efforts made. By being able to focus on just one or a few niches, a business can establish more solid relationships with a group of people who are more likely to respond to the promotional measures, and thus are more likely to bring in profits.
Niche marketing is also quite affordable compared to mass marketing, the marketing strategy at the very opposite end of the spectrum. Since only a small portion of the market is being addressed, smaller costs are at stake to go about the promotional campaign. The marketer also has the option to devote more budget to better quality promotional schemes. Because only a small part of the market has to be addressed, the marketer can spend more on quality promotional materials instead of producing a lot of cheap and useless items.
The Cons of Niche Marketing
Of course, nothing in this world is perfect – this includes marketing strategies, and thus niche marketing is bound to have its own set of cons. Primarily, it would be difficult for a product to get known to a very wide audience if niche marketing is implemented. This method would be futile if your goal as a company is to make your brand a household name. Since you would be addressing just a small part of the market, that small segment would be the only one to gain awareness of your offerings.
Corporate giants who rely on bulk sales to earn millions would not really succeed if their products or services are promoted only to a few sectors. It is important to catch the attention of the entire market to gain massive volumes in this kind of business. As such, mass marketing would be more advantageous in this scenario.
Different marketing strategies have been created to suit particular needs of different businesses. Understanding the pros and cons of these techniques is essential in the formation of a good marketing program. Niche marketing might not be advisable if your company needs to address the entire market to succeed. However, if your company is one that benefits from a more concentrated scheme to promote its products and services, then niche marketing may be the right option for you.