Niche Marketing Vis-à-vis Mass Marketing

To understand the difference between a mass marketer and a niche marketer, let us take the example of two businesswomen who deal with beauty related services. One provides all kinds of beauty services (mass marketing) and the other provides only bridal services (niche marketing). The first one has to make her place amongst a horde of other existing service providers, which will take up a lot of her time, effort and money whereas, the second businesswoman knows where her expertise lies. Visualize this situation. She has selected her target group the about-to-be married brides and is providing all services exclusively for them. When, advertising, she knows where she can get maximum clients. For example, she can get her website linked to all marriage related websites, beauty related sites. She can target sites on college going girls and market her services distinctly. She will get better results inspite if investing lesser money and effort because her market segment is clearly planned out, it is small and she can pull the attention of the limited customers towards her services.

So, why do you think that the concept of niche marketing is spreading like forest fire? Targeting a smaller segment of the market in comparison to the entire market is easier, more efficient, less expensive and produces faster results. But, before all this, what is imperative is a carefully chalked out marketing strategy. Since the customers are very limited, you have to pick up all the potential ones and make them aware of your product and its utility to them.

A Quick Glance At The Comparison Between Niche And Mass Marketing -

Niche Marketing

Concentrates on selling the products and services to a very small and selected market segment.
Cost can be controlled due to specialization and super-specialization.
Competition is low, as large predatory firms do not enter such areas.
Sales volume is low, but profits can be high because uniqueness commands a premium price.

Examples of niche markets are Rolls Royce specializing in the niche luxury automobile segment, Tag Heuer watches selling designer watches to the very niche brand conscious people.

Mass Marketing -

The seller tries to capture the maximum possible market share. This requires greater resources in terms of money, time and effort. As a result certain sections of the market get left out.
Involves selling the same product to everybody, although different sections have different requirements.
Tries to sell the same product to everyone through different channels. This requires much more planning and effort.

Since creating and developing a niche market in the beginning is quite difficult, what is advised is to get attached to an already existing niche that will use your products and services.

For example, assume that you have come up with a new type of fitness equipment for women and want to develop the market for it. Research the target section of the population and spread awareness about the product. An easy way out in the initial stages is to get attached to fitness clubs, gyms, women trainers to whom you can recommend your product. Once you have gained a stronghold in the market and identified your customer base, go ahead with your own niche marketing strategy.

< Back To Niche Marketing Next Previous