Question

2. Market segments can be broad or focused. Why do we care about a focused market?

Answer 1

Answer

True, market segments can be broad or focussed. The benefits or advantages of such a niche/ focussed market are:

1. Enhanced Customer Relationships

Niche marketing targets a very specific kind of customer, so depending on what you’re promoting, your niche market may be very small. A small customer base has its benefits. When you are engaging with fewer people, you can focus on the quality of those engagements and on nurturing your relationships.

2. Reduced Competition

When you have a highly specific product or service, there will be less companies out there with the exact same offering. The more specific your product or service, the less companies there will be to compete with you for customers, and the harder it is for them to duplicate your strategies.

3. Increased Visibility

Increased visibility is a benefit of niche marketing that not only leads to more customers but can also improve your online presence.

4. Word of Mouth Growth

Another benefit of niche marketing is that it is very word-of-mouth-friendly. People in a niche tend to be in frequent contact with others in that niche, which means more opportunities to get the word out about your business.

5. Honed Expertise

Niche marketing requires more concentrated practice in one area, so it can really fine tune your expertise in a shorter time period. The benefit of niche marketing is that it enables you to become an expert or thought leader in your niche.

6. Less Resources

The benefit of niche marketing is that because you are confined to a specific person and a specific need, less focus is required on digging into your data to understand and keep up with their needs.