Niche marketing

Niche Marketing

Successful Niche Marketing


Companies need to stake out unique market sweet spots, those areas that resonate so strongly with target consumers that they are willing to pay a premium price, which offsets the higher production and distribution costs associated with niche offerings. Ie., resonance marketing.

Target Carefully


Question: As part of your strategy, are you being careful to distinguish potential future market sweet spots from valueless competition that produce needless complexity?
Your offerings have to be different from existing options and better for target consumers. They have to resonate powerfully with them. Also, remember extensive research is necessary, to explore why consumers buy what they do and what they would buy, if it were available.

Listen, Really Listen


Question: Are you listening carefully to what consumers are saying online about your products, not just to you but also to each other, and are you reacting quickly to make improvements that address any negative comments?
The beauty of consumer-generated content is that companies get immediate and continuous feedback as word-of-mouth through online reviews spreads quickly over the Internet. Consumers will make it clear right away what they like about the product and what they don't.

Control Production & Distribution


Questions: Are you standardizing design components as much as possible to limit the costs of producing an extensive product line? Are you aggressively keeping inventory and distribution costs down with efficiency strategies that allow you to configure finished products quickly when orders arrive, swap inventory among outlets or share distribution with other producers?
Keep your inventory flexible through just-in-time assembly, keep any assembly standardized and simple and sharing distribution may be helpful.

Losers May Be Winners


Are you continually reviewing your product portfolio to weed out those products that aren't contributing to profits, while being careful not to dump products that aren't big sellers but still contribute to the portfolio's overall profitability?
Reviewing and pruning offerings is necessary to keep them resonating with consumers. Just remember some loss-leaders may be valuable to your overall marketing success.

Sources: Eric Clemons, Paul Nunes and Matt Reilly via wsj.com

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