There are many reasons why companies use niche marketing. Adding an extra demographic could narrow down and, paradoxically, open your horizons. Because of the smaller market size, this marketing approach is not suitable for a company that is small and intends to grow in the current market. Some still rely on traditional marketing methods, while others are starting to shift towards digital marketing. Because niche marketing focuses on specific groups of users, they’re more likely to buy your product than someone caught in a mass marketing net. Best for giving marketing insights. Brand loyalty. Example of niche markets. For instance, if you are offering a product for a selected demographic, you could advertise the product using a local media so that marketing budget go a lot further, allowing you to use a more comprehensive media mix. All rights reserved. She studied Management and Marketing at the University of Essex and has a Masters in Advertising, Marketing and the Media. As explained above, one of the clear advantages is that you are marketing to your ideal consumer. By using our website you consent to us using cookies. Email marketing also works well with PPC as we covered in a recent article. The Advantages and Disadvantages of Niche Marketing Advantages. Niche marketing has Less competition: Business is likely to face less competition because niche markets are smaller. 3. Niche marketing has comparatively quite less market competition for the viable competitors purchasing services or products.It ... 2. Understanding the market means you are able to identify the unique needs of your potential audience, provide new and compelling products, tailor your products in the right way, communicate efficiently with the target group and identify how you will position against your competitors. A mass marketing strategy focuses on the largest audience possible through broad advertising. Should You Use A Social Media Marketing Agency, Social Media Marketing Services And What To Look, How To Choose The Best PPC Management Company. Less Competition. Cheaper. There are a number of advantages and disadvantages of niche marketing. More information can be found in our return return cookie policy. It’s even harder if they’re not there at all. Compared to mass marketing, you’re not casting your net as wide, but you’re specific with who you want to catch. Social media is another tool to help with niche marketing. But what if your brand is highly specialised and relies more on the quality of the customer rather than the quantity? It can also give you an edge over competitors because when a product or service is niche, it stands out a lot more with unique features. The smaller market makes it difficult to enjoy a larger profit margin in the market. But for something more specialised, like vegan women’s sportswear from Unicorn Goods, the niche approach would be more beneficial, especially as the production costs would be higher. See how Adzooma’s AI technology can get the most out of your Google, Facebook and Microsoft Ads with our free trial. Having lower traffic than a broader site might seem counterintuitive but, say Site A gets 10 purchases from 100 visits and Site B gets 10 purchases from 1000 visits, Site A has a 10% conversion rate while Site B has 1%. Advantages and Disadvantages of Niche Marketing, The difference between and niche and mass markets, Less competitors = lost opportunity to improve, Find the Digital Agency that best suits you, the sportswear industry is worth around $62 billion in the US alone (as of 2019), vegan women’s sportswear from Unicorn Goods, How To Use Microsoft Ads Demographic Targeting, 10 Best Google Ads Tools and Software of 2020, Why Herd Marketing Can Hurt Your Business, How To Write Copy That Will Attract Your Potential Customers, A Google Ads Tool + AI - A Match Made In Heaven, PPC Advertising: The Future Is Automation, PPC Marketing: How To Perfect Your Campaigns. You are targeting the people you have determined are the ones most likely to actually buy your product.Another key advantage of niche marketing is that you often have less competition if you have any at all. Read: How To Use Microsoft Ads Demographic Targeting. Although considered an advantage of niche marketing, working on a small, changing markets requires a consistently large amount of research. If you’re looking to grow very quickly, then this could be a disadvantage to you as there can be limited growth. Niche marketing makes it possible for businesses to build their brand loyalty. That means you need to find out what your audience wants, tailor your products or services to them, and communicate with users. Another consideration on the list of disadvantages of niche marketing is the propensity of the market to change quickly. Google and the Google Logo/Google Ads Logo are registered trademarks of Google Inc. Facebook and the Facebook logo are trademarks of Facebook Inc. We’ve partnered with Revolut to help you save money on your Google, Facebook, and Microsoft ad spend. Customer loyalty is a defining feature of niche marketing. Niche marketing works well when you understand the market. This marketing approach lets you provide customers with products and services they need and desire. It draws fewer competitors into that marketplace and not many rivals. The kind of marketing you’d need for this kind of business is known as niche marketing and in this article, I’ll take a look at how you can use it to grow your business. Unlike in generalized marketing where market competition is still, niche marketing has quite less competition for the viable customers purchasing the products. It’s quality over quantity and that’s how you keep your ROI (return on investment) high. Among the advantages and disadvantages of niche marketing is that there is limited growth because there is a small group of customers to buy products. Less competition. Niche marketing is about focusing on a smaller group with interests that align perfectly with a business’s products or services. Away from the desk, Sophie enjoys yoga, home decor and spending time with her dog Dexter, aka PPC Pug. If you’re the only brand making a certain type of product, how will you know how to improve without another brand pushing you? Niche marketing is extremely cost-effective. You will end up creating new opportunities for your business by selling similar or support products. Check out our full terms and conditions of service and our privacy policy. , Mass Marketing: How It Works, Advantages and Disadvantages, Disposable Income: How to Calculate, Impacts, Determining Factors, Capital Deepening: Concept, Determinants, and Impacts, Real Exchange Rate: How To Calculate, Impacts, Determining Factors, Gearing: How to calculate, advantages and disadvantages, Financial Account on the Balance of Payments: Components and Impacts, Internal Growth: Methods, Advantages & Disadvantages, External Growth: Types, Advantages, and Disadvantages. There are countless examples of what a niche market could look like and you can create your own using your own demographic data. Keyword research is a good way to find out how often particular keywords or phrases are searched for online and whether there are any seasonal trends. This is a type of marketing where you will never throw away money hoping for returns. Looking for the legal stuff? SEO (search engine optimisation) is one that can make a real difference. Industry benchmarks help with general estimations but what you do isn’t what your competitors do. Downsides of niche marketing. It can be hard to compare to competitors as well, if they are using mass marketing, and you are choosing niche marketing. They can both work, but it depends massively on your business and your market. It’ll be the best advertising management platform you ever use. Because of having a much smaller market size, it can be harder to get started, and can mean that growth could be slower. You can get the entire Adzooma platform, for free. 5. Advantages of Niche Marketing: 1. Looking forward to making this my go-to ad management tool.”. However, with research, planning, and the right tools, you can find that niche marketing could work well for your business; there are plenty of advantages for doing so. The people that find you from that and have found you for the right thing, will stick around; the rest will not. A major disadvantage is that it may be too small and, as such, can limit your growth potential. It’s important to estimate a value of clicks and impressions, both from a PPC and SEO perspective. The following are the advantages of niche marketing : 1. She is passionate about understanding the user behind the click and turning data into more contextual understandings of user behaviour. Niche marketing makes it easy for you to save on your marketing dollars. © Clicktech Solutions Ltd. t/a Adzooma. When you approach marketing in this way, you are showing customers the things that they want or need.