Points on purpose of niche marketing are listed below. Niche marketing focuses on niche area of any market segment or products and services, faces less competiton and more chances of customer retention. Niche market products or services are more effective at the initial state of product life cycle. You might also like advantages & disadvantages of niche marekting for more information.
Purpose of niche marketing :
- It targets the best prospects
- Understand the customer needs
- Firms can become big in the small target segment
- Gains expertise in the particular market segment
- It is easier to become an expert in one thing than an expert in all the things.
- Strong relationship
- Business stability
- Focus business
- High profit margins.
Advantages of niche marketing :
- Less competition
- Brand Loyalty
- Competitive advantage
- Customer satisfaction
- Target customers
Disadvantages of niche marketing :
- Not all niche market are profitable
- Limited growth
- Change in demand
- HIgh risk
- Smaller market