Nisher marketing strategies

Niche marketing strategy is considered from different classification factors of marketing strategies.

According to M. Porter's classification, a niche strategy (focusing or concentration strategy) is a kind of competitive price leadership and differentiation strategies.

On the basis of the choice of the target market of the company, the market niche strategy (single-segment concentration) is opposed to strategies (segment, product, selective and full market coverage strategies. For more information on choosing a target market, see here.

In terms of segmentation, the market niche strategy (concentric marketing) is opposed to the strategies of undifferentiated and differentiated marketing.

According to F. Kotler's classification, the market niche strategy is an alternative to the following strategies: market leader, challenger and follower.

A company's specialization when choosing a niche strategy can be based on the following features:

- geographically,

- for end users,

- according to the ratio "price - quality of goods",

- service maintenance,

- by type of consumer

- in terms of product.

The niche market strategy is most effective for small companies that are just starting out in the market.

Depending on the ratio of the growth rate of the niche company and the growth rate of the niche itself, the following types of marketing strategies are distinguished:

- position maintenance strategy

- integration strategy

- a strategy for going beyond the boundaries of a niche

- niche leadership strategy

The position maintenance strategy is applied when the growth rate of the niche and the nicher decreases.

The integration strategy is applied when the growth rate of the niche outpaces the growth rate of the nicher, i.e. a nicher company is unable to meet the growing needs of a niche through the use of its own capabilities.

The niche expansion strategy is used when the growth rate of the niche company is higher than the growth rate of the niche.

The niche leadership strategy is used when the niche and the nicher tend to grow rapidly.