Niche marketing is about creating value for consumers to encourage loyalty for a company. By providing unique products and services to specific targets, the company will not be able to serve the general population; however, whoever fits into their customer category will be likely become a loyal consumer.

Then, is it worth it to do niche marketing, in which the company compromises bigger segment of potential consumers, and target a narrowed potential consumer market? Well, it depends. If your company is start up and cannot compete with corporations with humongous capital, you might as well position your company in a niche market. But if you are managing a big corporation, offering products that have broad apple, you might not even have to know about niche market. It is at your discretion to decide which market you want to pursue. However, I believe that niche marketing is definitely worth taking a look at it and considering at least.

Once you obtain loyal consumers, they are likely to buy your products over those of competitors. And, having this kind of consumer in your company’s customer profile is great advantage. Considering the cost benefit analysis, much less capital is required to market the products to loyal customers. Nowadays, increasing competition between companies requires everyone to use unique marketing methods to appeal to consumers. And, this niche marketing will help them to take a look at different segments of consumers where potential loyal consumers await.

reference:

http://alphaavant.com/journal/2013/10/10/niche-marketing-how-to-get-super-loyal-customers