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Moving to Niche Marketing

Date: 02/23/2006 | Category: Business | Author: Claire Reid

Lot of talks on marketing have been on market segmentation and targeting. Segmentation is a process of grouping of prospective customers based on some commonality. This commonality may be demographic, psychographic or geographic. However, the segments created from this process tend to be large, in fact too large to be catered by small businesses. This process is better suitable for large-scale organizations. What should then be done by small businesses? 

The answer to this question lies in niche marketing. Niche is nothing but a small segment with super special set of needs of the prospective customers. 

For example, pair of scissors for left-handed people or touch screens for visually impaired people. The sizes of such market segments are usually very small and the needs very specific. If you are planning to launch a new brand of scissors on a small scale, it will be difficult for you to compete against the giants in the category. It will be wise to position yourself as the makers of scissors for left-handed people. This is called niche marketing. If you are planning to start business consulting services, it will be far better to target niches within the segment – offer your services to small businesses in service industry or may be to those operated by females.

You stand a higher probability of success in a niche rather than the whole segment. 

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