Search results

Strategy Question: Now that my market is sized and segmented, how do I better understand segment niches?

Summary: The Segment Niching Tool gets to the next important level of detail in the understanding of an organization’s environment. We use the Market Segmentation Tool output as a starting point. Here we further carve out key niches for further understanding related to product or service offerings. We add a scale to the segment columns of the Segment Niching Tool, and break the column further into sections whose size represents the percent of that niche to the segment. Like the segmentation tool above, understanding niches within the segments provides important information within the competitive environment. Here is where people can get mired down in infinite ways to niche a segment. We introduce our approach, based on numerous scars of wisdom, of niching based on only two questions: (1) “Why they buy?” — the main reason the product or service is purchased, and (2) “How they buy?” — the main way the product or service is purchased.

Small firms can approach foreign markets notwithstanding their limited resources by adopting a niche strategy. This permits to understand how SMEs can reach high levels of export intensity and broad geographic scope. Moreover, a global niche approach permits to explain – among other factors – why and how infant firms can be international or even global since their inception. The case studies analysis shows a positive relation between niche strategy and high international performance, in terms of export intensity, precocity, speed, and scope. The international expansion of niche firms is based on an horizontal micro-segmentation of the global market: they move internationally following global customers, independently from the psychic/geographical distance, and compete mostly on a non-price basis.

This study aims to focus on the role of niche brands in online retailer assortments and the general market positions of niche brands, no prior study has explicitly focused on if and when brick-and-mortar retailers should include niche brands in their category assortments.

The authors empirically analyze the category performance implications of focusing assortments on niche brands, at the expense of mainstream brands, in two product categories that have significant niche brand presence, namely, coffee and beer. The empirical data include sales, distribution and marketing tactical information for 50 US geographic markets from 2001–2011.

This research finds that a mainstream brand focus has a generally positive impact on category performance. However, a store’s strategic shift toward niche brands is beneficial in certain cases such as when a store has higher average prices or product form variety or when they are part of a powerful chain. The authors also find that a niche brand focus strategy is becoming increasingly viable over time for brick-and-mortar retailers.

Little is known about the parameters that might make a brick-and-mortar retailer more or less likely to pursue a niche brand focus strategy and when doing so might improve category performance. This analysis helps clarify the conditions under which a brick-and-mortar retailer may experience category level sales increases from focusing assortments on niche brands.

This paper aims to define the niche market concept and to investigate the extent to which purchasing niche products represents a form of conspicuous consumption. Consumers increasingly seek products that differ from the mainstream, and companies regard niche markets as a promising opportunity beyond saturated mass markets.

Based on survey data that combines self-report scales and actual purchase decisions, the effects of different dimensions of conspicuous consumption on niche product choice are investigated using binary logistic regression.

Choosing niche products over mass market products is mainly influenced by differentiation tendencies. Moreover, consumers use niche products to strengthen their role as opinion leaders. Choice of mass market products, on the other hand, is influenced by assimilation tendencies. In contrast to common assumptions, status-seeking consumers are more likely to choose a mass market alternative over niche products.

Based on the conceptualization of niche markets, this study reveals that niche products are a means for consumers to distinguish themselves. Limitations include the focus on a single product domain and country. Future research should replicate the study for other types of niche products and in other cultural settings.

Niche firms should explicitly consider the social effects of conspicuous consumption as a key driver of demand. Specifically, the unique nature of a niche product should be highlighted and recognizable to increase the acceptance among potential customers. Moreover, instead of focussing the status of niche products, marketing activities should address opinion leaders’ desire to maintain their standing among the social group by providing in-depth information and enhanced customer experience.

This paper addresses the call for a conceptual definition of niche markets. Moreover, while previous work focussed on the company perspective, this study allows for an improved understanding of consumer behaviour with regard to niche markets.

This paper aims to explain the structure of the market from the perspective of small brands and to discuss marketing strategy implications.

The paper uses revealed preference data of the Australian wine market, comprising 4,000 wine shoppers' purchases over a 12‐month period. Standard brand performance measures such as penetration and purchase frequency are applied to the data to define niche and change‐of‐pace brands. Using the same data, price tier loyalty is measured using polarisation, and discussed in relation to the attribute offering required and the direct marketing approach required for true niche positions.

The empirical results show that both niche and change‐of‐pace positions are prevalent in the wine market and small wineries, within a direct marketing channel approach, should target higher price points with branded wines but also lower price point products as well. The results suggest that attribute levels that are change‐of‐pace are unsustainable for small brands and can only be undertaken by large brands with the appropriate marketing resources.

The authors conceptualise that small brands should focus on attribute levels that have excess loyalty. Large brands can absorb attribute levels that are change‐of‐pace. This conceptualisation requires further discussion, particularly from the strategy literature, as well as further empirical testing.

Whilst “niche” positions are the holy grail of some teaching and much practitioner endeavour, this paper has presented data that demonstrate the need for managers to ascertain if the position they occupy is in fact a niche or a change‐of‐pace position.

This paper fulfils a need by using revealed preference behavioural data to highlight different strategies for small and large brands. Behavioural analysis and papers in the past have emphasised the strength and tendency towards large brands without offering insight into small brand strategies.

The mass markets of previous decades have splintered into smaller market segments or niches, in which companies could be safer from cut‐throat competition and explore new market opportunities. Although part of a positioning strategy, niche marketing may be used as a deliberate marketing strategy to create “safe havens” and business opportunities for many companies. Aims to analyse the concept, basic issues and different methods of applying this marketing strategy.

This paper seeks to establish that the instability of niche markets, and their predisposition to catastrophic collapse, makes market flexibility a prerequisite for long‐term survival among niche marketers. It describes the two ways by which a niche marketer can acquire this market flexibility and demonstrates the advantages of the second of these two approaches, i.e. the development of a portfolio of separated niches.

An in‐depth discussion of niche instability/implosion, and how niche market flexibility can be acquired to increase the survivability of such events, provides the context for a single in‐depth case study of a company employing a systematic niche market flexibility approach. A multi‐method approach was adopted drawing on both interviews and documentary evidence.

Planning for flexibility is essential for long‐term survival as a niche marketer. Two broad approaches to achieve this exist – i.e. contingency and portfolio planning – which are not mutually exclusive. The portfolio approach offers specific advantages and examples of its successful applications exist.

This is a single case study.

The article has significant implications for practice, as fragmentation of markets and globalisation of production makes niche marketing desirable/essential for many players.

The area of planning for flexibility using a niche portfolio marketing strategy is under‐researched at present.

To examine how companies in the maturity stage of the product life cycle can implement and maintain a successful niche market strategy to increase competitiveness in the face of new competition, with particular reference to the global textile industry.

Responsible executives in eight firms in the textile and apparel/clothing sector in the USA were interviewed face‐to‐face or by telephone, or completed an online questionnaire. The sample contains leaders in the industry.

Research results suggest that niche marketing is an effective strategy for countering price competition in a mature industry and can use a niche market strategy. They identify key success factors, the most important factor of which was found to be a thorough understanding of the targeted consumers. It is concluded that the marketing mix plays a more important part than is generally suggested in the literature, by communicating non‐price product attributes to the niche market.

The small sample limits generalization beyond the companies that participated in the study and comparable firms in the US textile and apparel/clothing industry.

This research study shows, within its limitations, that niche marketing is a promising global competitive strategy for mature industries. The study proposes practical guidelines for putting it into practice.

This study generally confirms the literature, but comes to some original further conclusions.

The purpose of this paper is to better understand how strategic orientation guides the marketing strategy and marketing efforts of niche firms, by addressing the questions of which strategic orientation niche firms apply and how managers in niche firms handle the potential problems associated with different strategic orientations. Based on these findings, managerial implications are discussed.

Qualitative research in terms of in‐depth interviews of key informants in six niche firms in the seafood and wine industries.

The niche firms appear to be product oriented and customer oriented at the same time. They overcome the potential problems related to the respective strategic orientations by focusing on their product‐related strengths, while benefiting from their close and few customer relationships.

Managers in niche firms should focus on high‐quality products, specific product concepts and the continuous improvement of these. In addition, they should initiate and develop close and long‐term relationships with a few trusted business customers.

This research paper is one among very few papers that present findings related to niche firms and their choice of marketing strategy. This paper of strategic orientation can contribute to a better understanding of how niche firms prioritize, allocate resources and choose strategies.

The purpose of this paper is to present a concise status of niche marketing research and thereby provide a basis for further scholarly enhancement and insights for practitioners.

This paper takes the form of a literature review.

Reasons for why and when to pursue niche marketing, key success factors for implementing niche marketing and the potential problem areas are identified. Avenues for advancing knowledge about niche marketing are discussed.

Practitioners benefit from this comprehensive review of findings and insights from previous research. Scholars benefit from this review, as it summarizes and identifies key areas for future niche marketing research.

There has be no known scholarly article assessing the status of niche marketing research since Dalgic and Leeuw's seminal work.