evaluate whether or not a business benefits by operating in a global niche market.
question is of 20 marks .
Answers
Answer:
- Advantages of Marketing to a Niche Audience
- Less Competition. ...
- Brand Loyalty Built Through Strong Relationships. ...
- Spending Less on Marketing and Advertising. ...
- Higher Profit Margins. ...
- You are the Expert. ...
Answer:
Every business has a target audience, a group of customers who most benefit and accept the product or service you are offering. Within these target audiences are also smaller subgroups.
They share certain characteristics, and have specific wants, needs, and preferences. These smaller subgroups are called niches, and are a rich source of marketing opportunities.
A niche market does not necessarily mean a small market, but does involve specific target audiences with a specialised offering. 1
When you set up your business to appeal to everyone, it ends up appealing to no one because you are a small fish in a big pond. No one is going to notice you with all the other noise out there. You’ll get lost in a sea of bigger, more established businesses and experts. 2
However, marketing to a niche audience means you are competing within a narrowly defined market segment with a highly specialised offering. Which means your business is now the ‘big fish in a small pond’.
For any business, holding the majority market share in a niche market is a great achievement. But on the flip side, for a business that wants to keep on growing, pushing beyond the niche market is a must.
Niche marketing works well when you understand the market. A thorough understanding of your market means you can identify the unique needs of your potential audience, provide new and compelling products, tailor your products in the right way, communicate efficiently with the target group and identify how you will position against your competitors.
Targeting a niche market is often where many small Australian businesses start, with a single product that is of a single benefit to a niche segment of the market. By focusing on a niche market segment, small businesses can focus their resources on this subset of the market. Niche marketing can be a recommended as a start out business building strategy to most effectively utilise limited marketing budgets.
Rather than equate niche with “small,” think “refined.” As in targeting the needs, motivations and self-interests of a consumer group with such precision as to maximise the clarity of what would give you competitive advantage in their eyes.
In a keynote presentation to Brandworks University, consultancy firm Lindsay, Stone & Briggs defined the benefits of niche marketing. 3 “ When marketers get it right, what they offer the niche is so valued by them:
The marketer can charge a premium, reaping higher margins.
Can platform the brand to drive share of wallet.
Can experience rapid growth that makes up for the narrowness of the target.