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Proposed definitions will be considered for inclusion in the Economictimes.com Definition: Niche marketing is defined as channeling all marketing efforts towards one well-defined segment of the population. There is one important thing to understand that ‘niche’ does not exist, but is created by smart marketing techniques and identifying what the customer wants. Description: Niche marketing is a marketing tactic deployed to target a specific market segment which is unique. Niche market is often created by identifying what a customer wants and this can be done if the company knows what the customer needs and then tries to deliver a better solution to a problem which was not presented by other firms. A niche market does not mean a small market, but it involves specific target audience with a specialized offering. By doing so, the company becomes a market leader and it becomes possible for other firms to enter that particular segment. For example, there are various cinema halls across India, but there are few which have recliner seats to offer. Not everybody wants to watch a movie by paying 5x-6x times the cost of a normal ticket. Hence, the target audience is very different and the hall is also only open at places where the company feels that it would be able to tap into target audience especially in posh areas. There are various advantages of niche marketing. One of the benefits of niche market is that there is no or little competition under that segment. The company is virtually the market leader and enjoys price monopoly. The another benefit is the strong relationship with the customers because of the fact that the company operates in a small segment, the relationship between the company and the brand becomes stronger which is also a key to customer loyalty. Niche businesses are often high margin business. Customers do not mind paying a little extra because, they are only able to get that service in that company or under its brand.
When creating your marketing strategy, it’s important to consider which types of market targeting you’re going to use. I mean, that is if you’re including segmentation and targeting in your strategy. Which you don’t have to… but if you want to get ahead of those pesky competitors then you probably should. So what are market targeting strategies?Essentially, your targeting strategy involves evaluating each segment’s attractiveness and, from there, choosing which segment to enter. And a brand’s choice tends to be based on which segment they think will bring the company the most value. Establishing your potential customer base and choosing how broadly or narrowly you wish to market to these prospective consumers is key to your brand’s success and longevity.
To lay it out visually, the 4 targeting strategies look something like this… 
1. Undifferentiated MarketingOften referred to as mass marketing, the undifferentiated strategy basically ignores the differences between market segments and treats the entire market as one, single target. Fundamentally, there is no targeting at all. Everyone is a potential customer. Everyone. Let’s imagine the entire market as one big cake. The undifferentiated market targeting strategy doesn’t take a single slice or a half or even three-quarters of the treat. It takes the whole thing. The point of mass marketing is to reach as many people as possible, in the hope that they get on board with your brand. One advantage of this approach is that it’s cost-effective. It’s cheaper for brands to manufacture goods and produce content that is targeted to, well, everyone. It all makes sense, hopefully, but everything is clearer with an example. So here we go... Mass marketing usually occurs when a brand has a product or service that has a high market appeal. This is most common when it comes to things that people will always need or want. Like toothpaste, toilet roll, washing up liquid, furniture, and so on. Take IKEA, the Swedish-founded multinational retailer: They mostly sell general homeware, kitchen appliances, and ready-to-assemble furniture. And I think we can all agree, it’s just generally quite a fun place to walk about in, too. But that’s not the main point. The main point is that IKEA wins at undifferentiated marketing because of its huge, mass appeal.
IKEA not only has mass appeal in their products and price but in their personality, too. Because who doesn’t love a candid eco-enthusiast?
But it’s not just about the price or style range or environmental-mindedness for IKEA. It’s also about the experience. So for many people, the ‘IKEA day out’ is a real thing. And it’s clear to see why; you can get a bite to eat, pick up those homeware essentials whilst also exploring the half-made homes. I mean, it’s essentially an adult’s playground. And it’s the existence of this shared experience and common thought that heavily contributes to IKEA’s mass-market appeal and the almost cult-like status of the IKEA day out. Undifferentiated market targeting can be quite appealing to some brands as it appears a lot less risky than more segmented, precise forms of targeting. It undoubtedly works for some of the big guys like IKEA, but it’s argued that this targeting strategy is on its way out. Why? Because brands that mass-market run the risk of increased competition and over-exposure. But, in fact, it's primarily because consumers today want to be treated as unique individuals, with highly personalised products, content, and messages. And that’s where the next on our list comes in. Differentiated market targeting. 2. Differentiated MarketingDifferentiated market targeting offers us a little more depth and clarity. It’s otherwise known as ‘segmented’ marketing and entails isolating a number of (generally two or more) primary target segments that have the most potential value for the company. Once a brand has defined those few targets, the plan is then to develop separate marketing strategies for each. This type of market targeting is one of the most common. It makes sense for brands to identify several market segments and then design separate, concentrated strategies for each. In this way, companies don’t just constantly churn out products that are all the same, with no uniqueness, in the hope that consumers will just eat up whatever is offered to them. Segmented market targeting understands that consumers fit into different groups that require, and respond well to, personalisation. Take the iconic sportswear brand Nike, for example. In terms of footwear, they mostly sell trainers. But they wouldn’t get very far simply advertising one, single brand ‘trainers’. Like most other clothing brands, Nike offers different products for different segments. They love selling trainers, and they love selling trainers to you. But who are you? Are you a runner, weightlifter, cyclist, gym-goer, golfer, outdoorsy-type, or someone who simply loves sports footwear fashion? Well if you answered yes, or even ‘no’, to any of those options, Nike will have the footwear you’re after. Even with the rise of big brand competitors such as Adidas teaming up with global stars and influencers, like Kanye West, Nike still remain one of the most dominant players in sneaker fashion. Nike are innovators, collaborators, money-makers, and game-changers. Nike are able to target a range of segments simply because of their widespread resources and understanding of their target markets. Their products are diverse and wide-reaching. And, like any successful brand, all of Nike’s products are specifically manufactured and promoted to reach distinct market segments. Unlike undifferentiated, segmented targeting gets the benefits of avoiding over-exposure to consumers and dodging walls of competitors. I mean, not completely dodging them but sort of evading some of them, like an intermediate matador. Brands that use differentiated targeting are likely to see success that is more consistent than undifferentiated, as their offerings will be more personalized and focused. Consumers will appreciate this. And will thus have more loyalty to the brand that offers them distinctively featured products, opposed to the brand that offers the same things as every other company, but at a cheaper price... for this week, anyway. Then we get to concentrated marketing. 3. Concentrated MarketingFirst of all, what it is? Concentrated marketing is often called ‘niche marketing’. If we’re keeping with the cake metaphor, concentrated marketing doesn’t take the whole cake, half or even quarter-slices. It takes just one, small, exact slice which has some kind of specific, desired attribute on top. Like a piece of chocolate or a nut. Essentially, niche marketing puts all of its focus on one, or a few, narrow, specific consumer groups. Brands channel all of their marketing efforts towards their uniquely defined segment of the population, with the aim of owning this particular segment over their competitors. This way, the brand aims to reach its growth potential and create thriving brand loyalty and long-lasting relationships with its ideal consumer group. Take Lush, for example. This eco-friendly cosmetics retailer sets itself apart from the competition by seeping its strong, undying ethical message from every physical and digital pore available. This is clear when looking at their website’s homepage alone: Source: Lush
Yes, that’s right. Lush is a little bit different when it comes to traditional marketing, in the sense that, well, they don’t really do it. Pretty much all of their marketing relies on word-of-mouth and a little social media, where they predominantly share original and user-generated content (UGC). And it really works. But whilst Lush itself advocates things like environmental awareness, there’s no guarantee that all of its consumers reflect these thoughts. Lush are still an online and high-street brand. Their products are available to anyone who wishes to purchase them, therefore they can’t be sure that all of their customers are vegan, against animal testing, or that they even agree that climate change is a thing. They can only hope. Being niche has more benefits than just personalisation for consumers, though. Whilst narrowing segments of the population concentrated marketing also reduces competition. That’s what we like to hear. It also leaves room for innovation as well as optimising brand loyalty and cutting company costs. So, whilst concentrated marketing enables brands to streamline their marketing efforts and create unique, personalisation for their narrow target audience, it doesn’t allow brands to totally know and govern those who interact with them or their products. But do you know what? Micro-marketing does. 4. MicromarketingMicromarketing goes just that one step further than concentrated marketing. In fact, micromarketing targets a specific group (localised microsegments), or individuals, within a niche market. This strategy is highly targeted as all marketing efforts are focused on the distinct characteristics of these small groups or individuals. A great example of a brand that successfully uses micromarketing is Groupon. Groupon is a digital marketplace where users are able to access coupons online for, well, almost anything. From holidays and retail products to sports massages and date nights. Groupon allows users to get location-based deals from almost any digital device. It was launched in 2008 and since then, Groupon has grown to be the most popular website for discounts and promotions in the United States. Yes, the global e-commerce marketplace is a pro when it comes to targeting users incredibly specifically. Let’s face it, we all love a treat. And Groupon is really good at fizzling away some of our guilt and justifying our purchases because of those juicy discounts. Not only that, Groupon’s hyper-tailored targeting techniques mean that it tracks user activity and tailors content and deals accordingly. Groupon prioritises the customer. And whilst some disadvantages of micromarketing (like potential difficulty to expand or higher cost per acquisition) are apparent for many brands, the versatility of Groupon’s offerings and their highly personalised and customisable discounts lead them to be almost exempt from this digital sterilisation. This all sounds too good to be true, right? It does. But it is true. In 2018, Groupon had over 48 million active users. This is super impressive considering that one of their competitors is the e-commerce giant, Amazon. So for these guys, it really does pay to differentiate. Of course, there are many benefits and drawbacks to each targeting strategy. However, the most important thing is deciding which one is the most suitable for your brand. So, before you jump into any old target market, remember these few things:
...And you’ll be ready to go!
Which of these is a market coverage strategy in which a firm goes after a large share of one or few Sunmarket?Differentiated marketing is a market-coverage strategy in which a firm goes after a large share of one or a few submarkets.
Is market coverage strategy in which a firm decides to ignore market segmentation difference and go after the whole market with one offer?Mass marketing is a marketing strategy in which a firm decides to ignore market segment differences and appeal the whole market with one offer or one strategy, which supports the idea of broadcasting a message that will reach the largest number of people possible.
What are the market coverage strategies?There are three market coverage strategies: Undifferentiated Marketing - the goal is to focus on the most common need of consumers. Differentiated Marketing - specialized for each individual target market. Concentrated Marketing - focuses on a section of the market place.
Which of the following involves going after a large share of one or a few smaller segments or niches?When using a niche marketing strategy, a firm goes after a large share of one or a few smaller segments. Niche marketing involves tailoring brands and promotions to the needs and wants of local customer groups—cities, neighborhoods, and even specific stores.
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