Segmented or niche marketing is the opposite of mass marketing. In a niche marketing strategy, businesses focus on appealing to specific market subsets. While many products may benefit many people, finding its niche in terms of price, quality, and consumer demand ultimately produces more sustainable profitability.
For some niche marketing campaigns, a product clearly matches a certain demographic. As an example, a brand might create a piece of software engineers can use to track regulatory compliance for a project. Only a certain subset of engineers in a certain field will use the product, making it a niche. Marketing campaigns will naturally need to focus on the needs of this specific demographic.
In other niche marketing activities, brands create subsets of a larger market for targeted marketing activities for growing their consumer bases or improving brand recognition. Subaru vehicles offer the same benefits to every consumer, but the brand chose to narrow its marketing into a niche category. Now, the masses associate Subaru vehicles with certain people. A Subaru owner values family, likely owns a pet and enjoys spending time outdoors.
In either approach, niche marketing activities give businesses a way to reach qualified leads with a meaningful and value-driven message. Understanding the niche market is key in this marketing strategy. Every marketing campaign and activity hinge on a brand’s ability to appeal to a niche market’s emotions, needs, and lifestyle. The wrong assumption can leave consumers confused or even offended. Campaign testing enables businesses to discover messages that resonate with their target markets and produce measurable ROI.
Within the area of niche marketing, brands often find success using complementary evangelism marketing, affiliate marketing, and experiential marketing strategies. As part of a larger marketing strategy or a way to sell a highly specialized product, niche marketing delivers a personalized message designed to connect with individuals in the market on an emotional and/or need-based level.