Niche marketing is a highly targeted marketing strategy that focuses on a section of the market in particular. That particular section of the market has high potential to show interest in the product or service more than the majority of the market. Niche marketing focuses more on strategically selected media platforms that have high influence over targeted consumers. There are many niche marketing strategies that you can utilize, but word-of-mouth, endorsement and targeted collateral campaigns are the most prominent ones. Let's explain each one in detail.
1) Word-of-Mouth Campaigns
Even though brand exposure is low and subtle, these campaigns rely more on conversations between customers. Obviously, the building of the interaction between people takes some time. As a result, word-of-mouth campaigns take time as well to develop and yield results. However, the return on investment (ROI) can be extremely high, because word-of-mouth recommendations mean a lot to people.
2) Endorsement Campaigns
This particular strategy requires finding an influencer in the niche market and assign them as spokespersons on behalf of a product or service. The success of this strategy lies under the credibility and the sincerity of the spokesperson.
3) Targeted Collateral Campaigns
This strategy is about consistent brand exposure to the targeted niche market. For instance, a radio station that plays a niche type of music appeals only to a certain audience. Therefore, it executes targeted collateral campaigns.
Many companies from large ones to smaller ones effectively utilize niche marketing strategies in their overall marketing campaigns, because they can achieve their goals with a limited budget and very specific products that are targeted toward a certain segment of the population.
As for customer profile, niche marketing is very successful in reaching consumers who can be targeted depending on their characteristics such as; demographic, occupation and hobby. Pet lovers, young professionals, and literature lovers could be examples for customer profile that niche marketing focuses on.
To sum up, niche marketing targets a specific segment of the market. When targeting the people in that segment, niche marketing uses strategically selected media platforms. Online advertising is frequently used to target the specific segment because online advertising offers different targeting and retargeting options based on customers’ interests, hobbies, locations and internet behaviors. Hence, it brings success along.