Niche Marketing is a very concentrated form of marketing. Unlike some other forms of marketing that target a broad range or large group of consumers, niche marketing involves targeting a very specific, well-defined segment of the market.
Why is niche marketing important?
Niche marketing often focuses on market segments that are poorly targeted, or not targeted at all. Businesses that capitalize on the opportunities that lie in an untapped segment can open up the doors for an influx of success. Marketers identify the niches to target by identifying the desires and needs of consumers in specific segments. Efficiently tailoring a marketing campaign to a niche audience is crucial.
Marketers that create a well-defined niche have the ability to create a very personalized campaign with the greater appeal (and if well-executed, greater ROI).
Providing goods and services to a market segment that has gone un-served reduces barriers to entry, such as competition. Niches usually go un-targeted because smaller companies are unaware that the niche exists, and larger companies don’t think that targeting a small niche is worth their time. Companies that target these niche audiences will be endowed with first-mover advantages that give the company better positioning against new competitors.