"Where a business targets a smaller segment of a larger market, where customers have specific needs and wants Targeting a product or service at a niche segment has several advantages for a business (particularly a small business): • Less competition – the firm is a “big fish in a small pond” • Clear focus - target particular customers (often easier to find and reach too) • Builds up specialist skill and knowledge = market expertise • Can often charge a higher price – customers are prepared to pay for expertise • Profit margins often higher • Customers tend to be more loyal The main disadvantages of marketing to a niche include: • Lack of “economies of scale” (these are lower unit costs that arise from operating at high production volumes) • Risk of over dependence on a single product or market • Likely to attract competition if successful • Vulnerable to market changes – all “eggs in one basket”"
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"Market place partitioning will be the scientific discipline associated with splitting an overall market directly into buyer subsets or even portions, whoever inwards message sharing similar features and requirements. Partitioning generally involves major marketing research which enable it to therefore be expensive. It really is practised specially in important corporations along with highly classified products or maybe serving substantial market segments. The small enterprise has a tendency to obtain the section that provides finest from the learning from your errors connected with handling shoppers and selling goods increasingly suited to help it is unique patrons. "
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