The market cannot only be divided into segments . But also in niches and ultimately in individuals. To the extent that a selling firm subdivides a market . By identifying more unique features . Segments tend to become a set of niches . The customers that make up the niche have a set of needs . To some extent, singular and complex . They are willing to pay a premium to the company that best meets their needs. If it is to be successful , the niche market will have to specialize its operations. And for other competitors it is not easy to attack the leader of the niche . “ you are someone who is successful when you have made peace with your past, you are focused on the present and you are optimistic about the future . Marketers will stop concentrating on large segments to find and target specific niches.
It is best to be sure that the need exists before entering the business . To do niche marketing, the key is to specialize What is your company going to specialize in ? Are you going to specialize geographically ? By customer size ? In a single product , in a type of product or in a line of products ? In quality and price ? In service ? In a single channel or in several channels ? Is your potential market underserved or underserved? You should ask if there is competition in that market for your products or services. How many other companies do exactly what you do? Does the market have room for another company ? What is your risk level ? How easy is it to enter this market ? What will be the likely reaction of the main competitors ? Is your potential market large enough to be considered a market segment.
What is the size of your target market and the buying power of your customers ? If it is very small, how profitable is it to serve it ? Is your company in a position to serve the geographical area of your niche? How much will it cost you to attend to it in terms of all the resources that your coverage will demand? Does your company have to develop distribution channels or will it be easy for you to penetrate existing ones ? Can your company establish a direct channel with your customers by phone, fax or computer? Is your niche easy to reach through your marketing and communications efforts? Will you have to buy the niche through a very high investment of resources ? Will this purchase be profitable ? What will be your costs.