Niche Marketing
Many marketing professionals believe that creating marketing campaigns that target a huge segment of a population is likely to backfire for different reasons. For one, certain portions of the consumer market possess unique preferences that not all strategies can reach. Because of this, it’s essential for a business to concentrate their marketing efforts on a specific and well-defined segment of the buying population in order to obtain the best results. But first, the company must be able to identify the wants and needs of their customers to carry this out effectively.
Types of Niche Markets
Niche marketing is a targeted marketing plan that centers on a specific portion of the market that possesses a higher potential in connecting with a given product or service offered. This allows a brand to zero in on strategically selected channels and media platforms that can help the company reach its respected audience at a better rate. Here, marketers tailor their marketing strategies according to a predicted response.
To help make sense of how niche marketing works, here are some examples of the most prominent niche markets in the modern world:
1. Environmental
With the drastic effects of climate change coming in at an alarming rate, consumers feel the need to do their part for the environment — no matter how small their actions seem to be. Knowing this, marketers must cater to the demands of consumers who are dedicated to protecting our natural resources. The popularity of ‘green marketing’ has lead companies and consumers to work hand in hand to create environment friendly initiatives across multiple industries. From brand goods to packaging or manufacturing processes, a majority of today’s population will definitely appreciate a company’s effort to take part in the green movement. You may also see successful marketing campaign examples
2. Computers
Technology has become a massive part of our everyday lives. The biggest brands in this niche develop strong relationships with their respective consumers through a variety of marketing mediums such as television and radio, but focus primarily on internet-based channels to conduct social media marketing and content marketing strategies. In order to appeal to consumers, companies in the computer industry use technological innovations to their advantage. The birth of wireless devices has also allowed brands to deliver efficient and effective marketing campaigns. The most dominant forms of marketing in this niche include search engine marketing (SEO), pay-per-click marketing (PPC), and email marketing.
3. Music
Although the music industry is deemed to be one of the biggest industries in the modern world, the industry as a whole is performing more poorly than expected due to the prevalence of illegal downloading and the decrease of physical and digital album sales caused by online streaming apps. You may also like advertising and marketing examples to inspire you
The progressive movement of this industry has forced marketers to look for new ways to publicize artists in a way that will make them stand out among those who already established names. However, marketing songs can also be pretty difficult, especially when personal preference is a major factor. This is why marketers work rigorously to get an artist’s music out there but without giving all of the music for free. Though radio has always been a conventional medium for music marketing, many marketers now utilize video marketing and social marketing to entice a targeted audience.
4. Fashion
Marketing themes in the fashion industry typically revolve around the latest social trends. With most of its consumers belonging to the younger market, marketers strive to develop youth-oriented strategies and campaigns to generate better sales. Print, television, and online platforms are the most common channels used to conduct these marketing efforts. And since many shoppers prefer to purchase fashion items online for convenience, internet marketing has become a top priority for many fashion brands. Mobile marketing has also made its way into the spectrum, allowing young consumers to do their shopping online through different mobile portals.
5. Engineering firms
Firms that fall under this niche market usually specialize in providing solutions to engineering problems involving construction sites and the like. They may also be composed of experts who design special types of buildings and machinery for certain purposes. Given how industrialization is one of the most significant components to the economic and political success of a community, there’s no doubt that this form of niche marketing is of high importance to the development of today’s society. You may also see what is brand marketing?
6. Travel and Tourism
There are many travel and tourism locations and activities that appeal to enthusiasts from around the world. Since this industry often involves a partnership between private corporations and local governments, large budgets funded by both private and commercial entities is required. What was once dependent on print media for promotional campaigns has now shifted its attention towards digital marketing to reach its target audience. From websites to social media pages, television to radio, many companies use these digital channels to offer special rates and packages to a specific group of customers to drive sales.
7. Health and Fitness
With many public health initiatives encouraging people to slim down and get fit, the health and fitness industry has seen positive changes in its sales and revenue despite the little marketing efforts exerted. While local advertising has been conducted in the form of newspaper and magazine ads, billboards, and direct mail, the industry in general isn’t as invested in many marketing channels as opposed to other niche markets. You may also see effective marketing examples.
Common Niche Marketing Strategies
Listed below are some prevalent niche marketing strategies carried out by many successful brands:
1. Word-of-Mouth Campaigns
This subtle approach to marketing focuses more on the conversations made among consumers. Unlike most advertising materials, brand exposure in this type of campaign is relatively low key. Businesses often optimize on sponsorship or giveaways at events and the like to create a buzz around their brand. Instead of promoting products or services directly to consumers, marketers build publicity around their brand in an indirect yet relatively noticeable manner. While these campaigns take longer than usual, their results can be incredibly high and beneficial to a business, considering how word-of-mouth recommendations tend to carry a lot of weight with customers. You may also like marketing questionnaire examples & samples.
2. Targeted Collateral Campaigns
For this type of marketing strategy, consistent brand exposure is highly prioritized. For example, radio stations often play a niche genre of music to cater to a specific group of listeners. There are stations that play modern music and invite popular musicians to play for their audience, while there are also stations that focus on playing country music for listeners who enjoy the said genre. They employ targeted collateral campaigns to ensure that a particular audience stays engaged in order to obtain effective communication. These stations may even give out free concert tickets, attend events and concerts of these artists or advertise in local entertainment publications to gain publicity.
3. Trusted-Messenger/Endorsement Campaigns
In an attempt to reach optimum market impact, many businesses utilize various celebrity marketing strategies to appeal to consumers. These endorsements often generate a lot of attention due to the collaborations made with these personalities and influencers. The success of these endorsement campaigns would typically depend on the credibility of a spokesperson, as one’s image would greatly affect a person’s perception towards a brand.
Popular Niche Marketing Examples
While most marketing strategies target a broad range of prospects at a time, niche marketing focuses on a specific segment of customers that are likely to be interested in your products or services. This is an excellent approach for businesses that have a limited budget, as it allows them to shift their focus to a smaller group of consumers. You may also check out marketing presentation examples.
With that being said, let’s take a look at some examples of niche companies along with their notable marketing strategies that have helped draw in customers:
1. Bonobos
Who knew a special line of men’s pants would be a good business venture for aspiring entrepreneurs?
For Stanford business school classmates Andy Dunn and Brian Spaly, solving a specific problem involving the design of men’s pants was a problem worth solving. After only six months since they first launched their ecommerce store, the company earned an estimated $1 million in revenue. The widespread popularity and attention towards the brand allowed it to expand to markets beyond the world of men’s pants which includes shirts, shoes, and suits. You may also see relationship marketing examples that make an impact.
Apart from sending targeted emails to prospects, the brand also uses social media and blogging sites to interact with customers and increase sales.
2. Whole Foods
As previously mentioned, the popularity of the health and fitness industry has gradually made it a part of our modern culture, bringing the organic food niche into the spotlight.
Whole Foods, as one of the biggest suppliers of organic food for nutritionally-aware consumers, continues to reach customers with the help of creative content, not to mention healthy cooking techniques and recipes posted regularly on their blog. The store has even developed a special app to give users access to exclusive food coupons, local store details, and special recipes. Whole Foods also interacts with health-conscious and organic-enthusiast customers through YouTube marketing and social media marketing.
3. LUSH
These days, it’s hard to find a store that sells handmade products compared to machine manufactured goods. However, the cosmetics retailer brand LUSH dedicates its time and resources to creating pure handmade products from organic ingredients. The brand even uses eco-friendly packaging for their goods and refuse to do animal testing for their products. Their honest and positive principles has helped the brand gain recognition for their outstanding viewpoint on beauty. You may also like marketing report examples.
Additionally, LUSH also prioritizes its relationship with customers by featuring user-generated content across their social media sites. By using the hashtag #lushtime, customers can share personal experiences with the brand on their own social accounts. Along with other marketing efforts, this has helped the brand build a loyal following among its targeted audience. You may also check out email marketing examples.
4. Powell’s Books
Powell’s Books is the world’s largest independent bookstore for a reason, and it has a lot to do with the company’s impressive marketing strategy.
Selling a whole shelf of traditional, print books is one thing, but contributing to online book and literature discussions is a different kind of marketing strategy that has helped the company earn a loyal group of followers across the U.S. Powell’s also uses hashtags on their social media pages to promote products and giveaways to a particular audience. Their commitment to books and customer satisfaction has certainly played a significant role to the bookstore’s success in this age of e-books and digital journals.
5. Drybar
Looking for a high-quality blowout at an affordable price? Look no further, Drybar is here to save you from a bad hair day!
But first things first, who ever thought that a signature blowout would appeal so much to the affordable luxury market?
Sure, getting a haircut is a common thing to do. But what makes this business specialty so different is how the company managed to carve a niche in a hot market. Unlike traditional hair salons, clients can enjoy getting their hair done while watching a movie and relaxing on their salon chair. Drybar keeps clients engaged by posting creative content, responding to comments and inquiries, and hearing their personal experiences — just to add to the overall Drybar experience. You may also see marketing trends you need to know for 2018.
Developing a marketing campaign for a niche market is simple. Considering how you have already identified the market you plan to serve, then it’s a lot easier to tailor strategies that potential customers can connect to. This will help the company earn a better response rate in order to raise sales. So if you ever consider deploying niche marketing to promote your brand, ensure that you possess in-depth knowledge of your goods as well as the buying behavior of your respective prospects. You may also like marketing checklist examples & samples.
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