Question

2. Does your company cater to a niche market? If yes, explain. If not, can your company benefit by entering into a niche market?

Answer 1

Cost Efficiency

Use of the internet is advantageous in the cost-effectiveness than other forms of advertisement such as the niche media. The internet ads are displayed all the time day and night and are viewed by many people compared to the television ads which are presented for a short period . Therefore when the ads are displayed for a short period, they are viewed by few people. However, the use of internet has helped the company to display its products to a more extensive market at a lesser cost.

Target Marketing

It is easier to do target marketing on the internet than any other form of advertisement. Any advertisement on the internet is a position to get one hundred percent viewers. Any new advert on the website is viewed by everyone who visits the site and in so doing it increases its exposure thus it will help the company to achieve its target market.

Interactivity and Feedback

The interactive ads placed on the internet aid the online marketers to make use surveys, comments, and statistics thus increasing their effectiveness. The advertisement done on the social sites creates a good relationship between the company and the customer thus resulting in the genuine feedback consistently.

Niche Market

The company does not cater to a niche market.

Niche marketing is a form of advertisement that targets a specific population. Niche marketing will aid the company to stand out in the competition by benefiting in the following ways.

Enhanced Customer Relationships

Niche market targets a specific customer thus the company will have a small market. The company will, therefore, target on improving the quality and nurturing functional relationships between the customers and with the company too.

Reduced Competition

A company will enjoy reduced competition when it focuses on one product or service because the companies offering the same service or product will be less. The company having fewer competitors is more advantageous because it does away with the worry of monitoring prices compared to the one with many competitors .

Word Of Mouth Growth

Niche market is word of mouth friendly. People in a niche market are always in close contact to each other. It increases the chance of spreading out the word about business to many people and it is useful for the company to market a new product.

Fewer Resources

Focusing on a specific area requires less focus and fewer resources to meet the customer needs. The company shall also have less trial and error thus fewer funds will be used in correcting the mistakes made.