All you need to know about Niche marketing Strategy

Business owners try to market their products or services to a large market instead of focusing on small niche, which, undeniably, is the biggest mistake they do. For a marketing adviser, asking clients to focus on a niche market is the most difficult part of the job. To be successful in today’s hyper-competitive, over-advertised marketplace, you must focus your business and marketing on serving a specialized and preferably small niche market. This is especially true and a matter of survival if you have a small marketing budget.

It is something, which interests a particular chunk of the population. It is a particular area of anxiety. It is the means of finding a portion of standard market place for any specialized product or service. Sometimes, it chooses a particular proportion of the population, determining what they need, and providing a solution regularly in the way of locating the product or service to fill that requirement. When we talk about niche marketing, it is typically in the reference of business niche. Three main types of niche strategy include low-cost leadership, differentiation and focus.

Low-Cost Leadership Strategy

It is an influential competitive approach, where customers are price-sensitive. Their aim is to open up a sustainable cost benefit over competitors and then use lower cost as a basis for both underpricing competitors and gaining market share. The cost advantage will produce greater productivity unless it uses the violent price-cutting efforts to win sales from rivals. Low-cost leadership naturally makes low cost relative to competitors in terms of their whole business strategy. With the help of this strategy, an organization becomes industry’s lowest price provider of the products or services. It finds out different ways to drive costs out of business by reducing waste.


One benefit available to low-cost operators in an industry is that it helps a business to attain higher profit margins. If you sell your products and services at lower prices then it will help you attain high profits as compared to your competitors. Company can use higher profit margins to increase consumer demand and market share. It can also boost industry standards owing to sufficient budget.

Differentiation Strategy

This strategy is applicable when buyers and preferences differ. A successful differentiator studies needs and the behavior of a buyer carefully to learn what they consider important and valuable. The differentiator includes one or more features into its product offering to persuade buyer preferences for its brand over the competitor’s brand. It can provide a competitive advantage to small markets to overcome the pressure of large companies.



It allows business to compete in areas other than price. A business can utilize differentiation strategy to focus on the design and quality of their products or services and gain a competitive advantage in the market without proposing any pricing changes. This strategy creates brand loyalty among clients.


Focus strategy or specialization strategy starts by selecting a market niche where consumers have distinctive requirements and preferences. We can also define it as geographic uniqueness, achieved by specialized requirements, or by special product attributes that appeal only to niche members. Using specialized strategy to achieve a cost breakthrough is the most common technique.



By adopting this strategy, an organization focuses on specific target market. This will help the organization to meet consumer’s needs and better consumer satisfaction. The focus strategy is the best choice for small businesses because they customarily lack the resources for competing industry-wide.