Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
CARVING A NICHE
FOR YOUR
PRODUCTS AND
SERVICES
Objectives
■ Understand what niche marketing entails
■ Appreciatethe need to create a niche as a business
■ Outline factor...
Content
■ Introduction toNiche Marketing
■ Carving a Niche
■ Marketing to your Niche Audience
■ Enteringyour Niche Market ...
INTRODUCTION TO
NICHE MARKETING
Session 1
Introduction
■ Your company is not the only one offering a productor service
like yours.
– Thereare numerous financial ins...
Introduction
■ Thesecustomers are being bombarded with marketing
messages everyday and they are confused as to who they
sh...
Introduction
■ A common thought shared among small business owners is if
they offer more products/services, they’llget mor...
Introduction
■ It’s better for your business to be the first choice of some
rather than the second choice of all. You need...
Introduction
■ One of the ways is by choosinga . A niche will help you
break through all the competition so you can surviv...
So what is a niche?
■ A niche or niche market is
– a specific area in your target audience where you will position
yoursel...
So what is a niche
■ Giraffes and zebras both feed on vegetation and yet they do
not compete while the zebra grazes grass,...
Niche marketing
■ Nichemarketing is therefore a form of marketing that is
geared toward a very specific population, or nic...
Example 1: Fashion Industry
■ General Term: Clothes design and sewing
– Competition: 167,000,000 businesses
■ Specific Ter...
Example 2: Financial services
sector
■ General Term: Financial services
– Competition: 600 businesses
■ Specific Location:...
Niche bank
■ A niche bank is therefore
– a specialized bank which deals only with certain types of
customers or services
–...
A niche is about…
■ Positioning.
■ A niche will help you position yourself within the target
audienceyou have chosen and w...
A niche is about…
■ Expertise
■ To carve out a niche in a specific sector, you need to
specialize and be an expert in what...
A niche is about…
■ Being different and standing out from the crowd
– You can not afford to do what everyoneelse is doing,...
Why create a niche
Niche
Marketing
Reduced
Competition
Increased
Visibility
Word of
Mouth
Growth
Honed
Expertise
Enhanced
...
CARVING A NICHE
Session 2
Factors to consider in carving a
niche
■ How does one carve a niche that already has a lot of players?
– There are various...
Pricing
■ You may decide to create a niche using a pricing strategy. So
you either
– Price your products or services at a ...
Niche positioning
■ The first step in niche positioning is to identify a negative
‘stereotype’ that exists among businesse...
Niche audience
■ Businessescan still carve a niche by targeting a specific
category of customers. The objective of this st...
Value added offering
■ What do you do if you offer a mainstream product or service
wherecarving your own niche or audience...
How to choose a niche
■ Rules of niche marketing
– Don’taim at a general market
Focus on a sub segment of your market
Eg. ...
How to choose a niche
■ Beat your competition by identifying untapped niches
– There are a lot of untapped opportunities i...
How to choose a niche
■ Offer more specific, valuable information to a more targeted
audiencewhich is more likely to conve...
How to choose a niche
■ Remember, your niche should be:
– Unique: Aniche market needs to have defining traits that
separat...
What to do when choosing a niche
■ Determine the profitability of the niche. Manyniches within
your target audience may no...
What to do when choosing a
niche
■ Test your product for acceptance within that niche. The niche
may exist, but does your ...
What to do when choosing a
niche
■ Embark on innovative marketing.
– It is easy to just assume that once you identify a ni...
Essential factors of niche marketing
1. Understand the customers need.
2. Try to knowthe aims and objectives that the busi...
Group Activity: Defining a niche for your bank
■ The purpose of this activity is to help you identify a
niche for your ban...
Group Activity: Defining a niche for the bank
2. Defining your niche
– Assess your strengths as a bank
Write 5 strengths
–...
Group Activity: Defining a niche for the bank
– Assess your market/industry
What new products and services are evolving in...
MARKETING TO YOUR
NICHE AUDIENCE
Session 3
Who is your niche audience?
Your niche audience is your target market.
The group of customers you intend to sell
your prod...
Who is your niche audience?
■ Some factorsto help you define your niche audience
– The age group – is the product/service ...
Marketing to the niche
■ We will discuss two ways in which you can market to your
nicheaudience
1. Targeting your marketin...
Marketing to the niche
– There’s a common misconception that crafting a successful
nichemarketing campaign is all about fi...
Marketing to the niche
2. Marketing to your main niche audience
– Although having a niche has its advantages, there is sti...
Marketing to the niche
■ For both methods discussed, you need to :
This applies to all areas of marketing, but is especial...
Marketing to the niche
■ One of the most important aspects of niche marketing is
determiningyour uniqueselling proposition...
Marketing to the niche
■ It is important to keep in mind that your unique selling
proposition may not necessarily be a sin...
Marketing to the niche
■ In the process of defining your niche, you will probably
discover somegood ideas for products and...
Marketing to the niche
■ It is essential that your marketing materials reflect your new
niche ie. brochures, flyers, bill ...
Marketing to the niche
■ To build a successfulnichemarketing campaign, you need to
sell more than just a product, you need...
Eg. of story telling
■ MTN mobile money TV advert
– Story about a man who forgot his wallet at home and was stranded
in a ...
Converting your general audience
■ When your marketing efforts are geared towards converting
yourgeneral audienceto become...
Converting your general audience
■ When you’re building your niche marketing campaign, it is
effective to contrast your ni...
Example
■ All the children who drink Milo in the advert run faster and
win the competition. And those who did not drink it...
Marketing to your niche
■ When your marketing efforts are geared towards marketing to
your niche there is the need for
■ A...
ENTERING YOUR
NICHE MARKET -
STRATEGIES
Session 4
Entering your niche
■ In addition to choosing the appropriate marketing strategy, it
is crucial to determinethe timing of ...
Entering your niche
■ In determiningan entry strategy into your niche market there
are various factors that need to be con...
Entering your niche
■ Studies show that it costs more to be a pioneer in a niche
market. Let’s understand who a pioneer is...
Entering your niche
■ Why is it expensive to be a pioneer?
– Introducing a new/nicheproduct or service requires a higher
i...
Entering your niche
■ On the other hand being first to the market provides a
significant and sustained market-shareadvanta...
Entering your niche
■ Notwithstanding, late entrants into a niche market can also
succeed byadopting distinctive positioni...
Strategies for late entrants
■ Common attacking methods used by late entrants
Price
discounts
Cheaper
products/
services
P...
Strategies for pioneers
• A simple strategy is to match any price cuts by the
competition with similar discounts, as long ...
Entering your niche
■ Based on our discussion on how to enter your niche market
you may now be in a position to determinew...
Resources
■ Anand Srinivasan - Business.com : ‘Your Mark: How to Carve Your
Own Niche In a Saturated Market’
■ www.Pittman...
Upcoming SlideShare
Loading in …5
×

Carving a niche for your products and services

705 views

Published on

The slides explain what niche marketing entails and why the need for businesses to create a niche for themselves. They outline factors to consider in carving a niche for your business as well as propose methods you can use to choose a niche for your business

Published in: Marketing
  • A Free Gift From Your Guardian Angel: Musical soundscape composed using sacred "Angel Tone" brings healing, abundance, and magic into your life. Go here to experience this majestic sound gifted to us from a "higher plane."  https://bit.ly/30Ju5r6
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Carving a niche for your products and services

  1. 1. CARVING A NICHE FOR YOUR PRODUCTS AND SERVICES
  2. 2. Objectives ■ Understand what niche marketing entails ■ Appreciatethe need to create a niche as a business ■ Outline factors to consider in carving a niche for your business ■ Identifyhow to choosea niche for your business ■ Outline two main approaches to marketing to your niche audience ■ Determinenichemarket entry strategies for your business
  3. 3. Content ■ Introduction toNiche Marketing ■ Carving a Niche ■ Marketing to your Niche Audience ■ Enteringyour Niche Market - Strategies
  4. 4. INTRODUCTION TO NICHE MARKETING Session 1
  5. 5. Introduction ■ Your company is not the only one offering a productor service like yours. – Thereare numerous financial institutions in Ghana – banks, microfinanceinstitutions, savings and loans companies etc. – In fact as at April 2016 there were 140 licensed rural and communitybanks in Ghana – Theyall have various financial products and services, even someare exactly like what you offer – All these institutions are chasingafter the same customers
  6. 6. Introduction ■ Thesecustomers are being bombarded with marketing messages everyday and they are confused as to who they should do business with HOW DO YOU SET YOUR SELF APART FROM YOUR COMPETITION?
  7. 7. Introduction ■ A common thought shared among small business owners is if they offer more products/services, they’llget more customers as a result. While this makes sense, having a business niche can actually boost business more than offering a wide range of products. ■ It may not make sense to everyone, but providing knowledge about a small set of products/servicesto a defined market will help businessesbe known for that “thing.” ■ When people knowthese businessesfor this “thing,” they will instantly becomethe “choice” for their niche
  8. 8. Introduction ■ It’s better for your business to be the first choice of some rather than the second choice of all. You need to identify what you’rereally good at, throw your weight behind it, and dominatethat one area above all else.
  9. 9. Introduction ■ One of the ways is by choosinga . A niche will help you break through all the competition so you can survive in the businessenvironment
  10. 10. So what is a niche? ■ A niche or niche market is – a specific area in your target audience where you will position yourself as the expert – a segment within your target market where you spend the most time marketing your product or service. – a specialized market in which a clearly defined range of productis sold to a specific group of customers ■ Your niche helps set you apart from your competition.
  11. 11. So what is a niche ■ Giraffes and zebras both feed on vegetation and yet they do not compete while the zebra grazes grass, the giraffe collects tree top leaves. ■ Theyboth specialize in certain areas and have their own niche.
  12. 12. Niche marketing ■ Nichemarketing is therefore a form of marketing that is geared toward a very specific population, or niche. ■ A business may form a niche market strategy around – its specialization in a particular service, or – serve a particular demographic group within its target audience. ■ If the business forms its marketing endeavors around this subgroup, this business would be in the practice of niche marketing.
  13. 13. Example 1: Fashion Industry ■ General Term: Clothes design and sewing – Competition: 167,000,000 businesses ■ Specific Term: Women’s clothes design and sewing – Competition: 23,300,000 businesses ■ Specific Location: Women’s clothes design and sewing in Kumasi – Competition: 6,150,000 businesses ■ Niche: Women’s bridal clothes design and sewing – Competition: 4,390,000 businesses
  14. 14. Example 2: Financial services sector ■ General Term: Financial services – Competition: 600 businesses ■ Specific Location: Providing financial services in rural areas – Competition: 350 businesses ■ Specific Term: Providing financial services to small and micro businesses in rural areas – Competition: 280 businesses ■ Niche: Providing financial services to women entrepreneurs (owners of small and micro businesses) in rural areas – Competition: 150 businesses
  15. 15. Niche bank ■ A niche bank is therefore – a specialized bank which deals only with certain types of customers or services – A bank that caters to and serves the needs of a certain demographic segment of the population. ■ Nichebanks typically target a specific market or type of customer,and tailor a bank's advertising, product mix and operations to this target market's preferences. (Investopedia)
  16. 16. A niche is about… ■ Positioning. ■ A niche will help you position yourself within the target audienceyou have chosen and will allow you to compete more effectively for their business. ■ Choosinga niche allows you to focus on a specific piece of the target audienceand make it your own. And this is the bestway to compete against your competition. ■ Small businesseshave a definite advantage in niche marketing. Small business can survive; in fact thrive, in niches too small for big business to take seriously.
  17. 17. A niche is about… ■ Expertise ■ To carve out a niche in a specific sector, you need to specialize and be an expert in what you do ■ You need to knowyour target audienceextremely well such that there are no mistakes when you design products and services for them
  18. 18. A niche is about… ■ Being different and standing out from the crowd – You can not afford to do what everyoneelse is doing, you need to stand out from among the pack if you want to carve a nichefor yourself. You need to be clearly noticeable so your target audiencecan identify you.
  19. 19. Why create a niche Niche Marketing Reduced Competition Increased Visibility Word of Mouth Growth Honed Expertise Enhanced Customer Relationships
  20. 20. CARVING A NICHE Session 2
  21. 21. Factors to consider in carving a niche ■ How does one carve a niche that already has a lot of players? – There are various factors that go into determining how to position oneself in the market and in what specific sub area of your market to carve a niche for yourself. – Lets look at some of them
  22. 22. Pricing ■ You may decide to create a niche using a pricing strategy. So you either – Price your products or services at a premium. ■ The rationale behind this is that customers are often willing to pay extra to work with a business that is reputable. – Price your service very low ■ To attract price conscious customers. Most new entrants use this strategy although it is not sustainable and will only work if you intend to gradually raise prices and be profitable in the long-term. – the best way to go about this is by selling your productat the same price as your competitors and by bringing it down through discounts.
  23. 23. Niche positioning ■ The first step in niche positioning is to identify a negative ‘stereotype’ that exists among businesses in the segment and then offer your product as an alternative that solves this problem – This is a strategy that can be applied to any industry Eg. Within the fast food segment of the food industry, a company may decide to position itself as a preferred choice for health conscious consumers. So it focuses on using vegetable based proteins such as soy, beans etc. for its dishes, provides only grilled foods, no fried chicken or rice etc. Eg. Unique Bank, Ghana before becoming a bank, focused on providing loans in 48 hours as a solution to the long delay in processing of loans by the conventional banks ■ The company captured a certain niche in the market place
  24. 24. Niche audience ■ Businessescan still carve a niche by targeting a specific category of customers. The objective of this strategy is to focus all your marketing and product building effort on catering to one specific category of people. – Eg. Women, students, children, professionals, geographical area, community etc. – Eg. The social network Facebook focused on catering to university students who needed a private community of their own, while LinkedIn focused on professional networking among business customers. ■ Today, both of these social networks continueto exist and they have distinct customers and uses although there is sometimes an overlap between the users of these platforms.
  25. 25. Value added offering ■ What do you do if you offer a mainstream product or service wherecarving your own niche or audienceseems unrealistic? ■ In such cases, one wonderfulway to penetrate the market is by creating value-added offerings that your competitors do not provide. – Value additions include home delivery (where none exist), free consultations and complementary products. – The idea is to enhance the value of your product or service and thereby create an unfair advantage to you over your competitors. – Eg. Buy one get one free offerings, discounts etc.
  26. 26. How to choose a niche ■ Rules of niche marketing – Don’taim at a general market Focus on a sub segment of your market Eg. If you operate in the beverage sector, do you want to focus on alcoholicor non alcoholicbeverages? If non alcoholic, do you want to focus on food beverages such as Milo, Horlicks, etc. or pure drinks? If purely drinks, do you want to focus on fizzy drinks such as coke, sprite etc. or fruit juices? Etc. ■ In other words, position your brand as narrowly as is economicallypossible.
  27. 27. How to choose a niche ■ Beat your competition by identifying untapped niches – There are a lot of untapped opportunities in our sectors if only we look hard enough and are prepared to work with our target audience to identify new niches – Rapidly work with the target niche to co-innovate and reap first-mover advantage by identifying a niche of opportunity What are someof the untapped niches in the financial sector?
  28. 28. How to choose a niche ■ Offer more specific, valuable information to a more targeted audiencewhich is more likely to convert and become customers – Understand yourniche audience and give them what they need – Becomethe specialist that anticipates the needs of your target
  29. 29. How to choose a niche ■ Remember, your niche should be: – Unique: Aniche market needs to have defining traits that separate it from larger audiences and make it easier to target. – Identifiable: You should be able to easily describe your niche using details like demographics, behaviours, and interests. – Scalable: Although yourniche might represent a very specific subset of a market, you need to make sure that you’ll be able to expand on it in the future to reach larger audiences that may currently fall outside of your niche.
  30. 30. What to do when choosing a niche ■ Determine the profitability of the niche. Manyniches within your target audience may not provide a decent return on your marketing investment. – Just because no one is marketing to that niche, doesn’t mean that it is a worthwhile target. That is why you need to do your duediligence. How do you determine if that niche will be profitable? Conduct customer surveys to understand them and their needs Assess the competition within the niche Identify your niche audience Also helps you determine if a real marketexists and if the numbers are encouraging
  31. 31. What to do when choosing a niche ■ Test your product for acceptance within that niche. The niche may exist, but does your productor servicemeet their needs or is there even a desire for the product? Carry out product /service sampling Understand your niche audience Repackage your products and services to suit their needs
  32. 32. What to do when choosing a niche ■ Embark on innovative marketing. – It is easy to just assume that once you identify a nice you can go on and market yourself to them using the same old methodsand tactics – Spend the time to determine the best way market to them. Just like choosing your target audience, defining a nichein that audience allows you to target and personalize yourmarketing efforts. – So try something new, something eye catching which has not been done yet in your niche area Remember there’s nothing new under the sun, if you look hard enough, you’ll find something different to try
  33. 33. Essential factors of niche marketing 1. Understand the customers need. 2. Try to knowthe aims and objectives that the business wants to achieve 3. Develop promotional materials to the targeted segment at the motivation and interest of the consumer segment. 4. Target the best prospects who most likely can convert to customers.
  34. 34. Group Activity: Defining a niche for your bank ■ The purpose of this activity is to help you identify a niche for your bank or, at the very minimum, help you generate ideas on what new areas you can focus on in terms of products, services or markets. 1. Read Sheet 1: Three Tips to Choosing a Niche for your Bank – What ideas can you pick from it to develop a niche for your bank?
  35. 35. Group Activity: Defining a niche for the bank 2. Defining your niche – Assess your strengths as a bank Write 5 strengths – Assess your client base What categories of people are they mainly? Individuals, Businesses, Men, Women? Which category of clients is the most profitable to the bank in terms of volume of business and figures? What specific services or products can be developed for each category?
  36. 36. Group Activity: Defining a niche for the bank – Assess your market/industry What new products and services are evolving in the banking industry How can you adapt them to the environment in which you operate and to any of your client base – Assess your competition What innovative products and services have they introduced Is it possible to tweak some to suit our environment and clientele?
  37. 37. MARKETING TO YOUR NICHE AUDIENCE Session 3
  38. 38. Who is your niche audience? Your niche audience is your target market. The group of customers you intend to sell your product/service to. It is importantto clearly define this group since they play a large role in determining your success or failure in your new niche
  39. 39. Who is your niche audience? ■ Some factorsto help you define your niche audience – The age group – is the product/service targeted at teenagers, university students, middle aged or old people. Sometimes there is a possibility that the product will cater to the needs of all age groups. – Gender. – Marital status – Occupation – Ethnic background, – Health status, – Incomestatus, – Education, – Hobbies, etc
  40. 40. Marketing to the niche ■ We will discuss two ways in which you can market to your nicheaudience 1. Targeting your marketing efforts so as to convert audienceor customers fromthe general market to join your niche market. (if your product or service is of a kind that people can make the switch) Eg. Food products – Consumers can switch from using vegetable oil to cholesterol free oil Dressmaking – customers can switch from their usual tailor to use the services of a niche tailor because s/he specializes in suits or slit and kaba etc. Financial services – customers can switch from using one company’s products to another because of a particular service that has been introduced in the niche company eg. Free financial accounting set up for SMEs for the first 3 months or free business supportto women’s groups which bank with the institution etc.
  41. 41. Marketing to the niche – There’s a common misconception that crafting a successful nichemarketing campaign is all about finding an audience or customer base which is as small as possible and then creating a strategy that only serves that audience. – Actually, one of the ways to build an effective campaign is uncovering an underserved niche market and then creating a strategy that makes everyone want to be a part of that niche – You need to not only speak to your potential niche customers, but also activate members of your general audience who may not yet have realized that they can also be your niche customers.
  42. 42. Marketing to the niche 2. Marketing to your main niche audience – Although having a niche has its advantages, there is still the challengeof reaching this small, subset group and marketing them effectively. ■ After all, how many people in Ghana want to buy fish fillets (if that is your niche) or buy a luxury home or travel insuranceor eat in an Indian restaurant which provides only Indian cuisine? – It almost seems like marketing to a niche market is harder than marketing to the general public, but there is a way to do it effectively.
  43. 43. Marketing to the niche ■ For both methods discussed, you need to : This applies to all areas of marketing, but is especially true for reaching your niche market. For example, if you own a bakery that specializes in French bread and pastries, your audience is motivated by very different things than the people who will buy bread from the roadside so long as it is bread. Getto know their behaviors and find out their concerns, where they go for their information and what drives them to come to you. A good place to start is by talking to your customers directly. Know Your Niche MarketWELL
  44. 44. Marketing to the niche ■ One of the most important aspects of niche marketing is determiningyour uniqueselling proposition. ■ Your uniqueselling proposition needs to be ‘engraved’ on your brand from the very beginning. It is the one defining element that sets your business apart and it should guide everythingthat you do—frommarketing campaigns to product developmentand everythingin between. ■ It may be tempting to say that the quality of your products or services or your packaging is your USP but a truly effective uniqueselling proposition should go much deeper than that. Determine Your UniqueSelling Proposition (USP)
  45. 45. Marketing to the niche ■ It is important to keep in mind that your unique selling proposition may not necessarily be a single benefit or offering. – It may be a coming together of factors which put together, delight your customers and turn them into lifelong brand advocates who always choose your business over your competition. ■ Here are some questions to ask as a guide, to find your unique selling proposition: – What can you offer your customers that no one else can? – Why should your customers bother buying your products and services? – What value does your business bring to your customers lives? – How can you use what you now know about your customers to alleviate their challenges or problems more effectively?
  46. 46. Marketing to the niche ■ In the process of defining your niche, you will probably discover somegood ideas for products and services that you can now sell to your ideal customers. ■ Always keep an eye out for inspiration: Wherever there’s a customer with a challenge or problem, there’s a new product or service waiting to happen. ComeUp with a Product/Service or fine tuneand revampthem
  47. 47. Marketing to the niche ■ It is essential that your marketing materials reflect your new niche ie. brochures, flyers, bill boards, adverts, website content, word-of-mouth fromemployees to customers etc. ■ Crafting the perfect content for a niche market is important. It sends the message to your audienceabout your new status Specialize and tailor the contentof your marketing materials
  48. 48. Marketing to the niche ■ To build a successfulnichemarketing campaign, you need to sell more than just a product, you need to sell a lifestyle. ■ Telling a compelling story about your brand is one of the best ways to showcaseexactly why your product is the perfect fit for your customers’ lives. Tell a Story
  49. 49. Eg. of story telling ■ MTN mobile money TV advert – Story about a man who forgot his wallet at home and was stranded in a taxi because he couldn’t pay. He then sees the MTN mobile money sticker on the taxi and realizes that the taxi driver accepts mobile money. So he pays his taxi fare with mobile money, pays for food at the restaurant with mobile money and the following day intentionally leaves his wallet at home since he has experienced how MTN mobile money makes his life easier. – Other stories… MTN university campus love story for product targeted at the youth, coca cola story using Ghanaian names
  50. 50. Converting your general audience ■ When your marketing efforts are geared towards converting yourgeneral audienceto become part of your niche audience, there is the need for ■ Nichemarketing is all about providing an audience, especially one that might feel ignored or undervalued, with a senseof identity and belonging. ■ This “Us vs. Them” mentality is a powerfulpsychological trigger known as the Social Identity Theory. Exclusivity
  51. 51. Converting your general audience ■ When you’re building your niche marketing campaign, it is effective to contrast your niche audiencewith another group to emphasize that not only are they different, but they should be proud of being different. – By discriminating against the out-group, the in-group boosts their sense of self-esteem and belonging. – You need to emphasize the resilience and uniqueness that make them special.
  52. 52. Example ■ All the children who drink Milo in the advert run faster and win the competition. And those who did not drink it end up being the losers. ■ Ie. the advert thus reaches out to people who do not drink Milo to join the bandwagon so they can also win
  53. 53. Marketing to your niche ■ When your marketing efforts are geared towards marketing to your niche there is the need for ■ A niche market needs to be reached on particular marketing channels, which means your business doesn’t need to be active everywhere – radio, tv, website etc. ■ Choose the best channels where your niche audience spends time. Churches, community events, youth programmes, using gong gong beaters, social media etc. ■ If your niche audience are mainly semi literates, don’t focus your energies so much on brochures and flyers, rather on word-of- mouth and picture illustrations of your new niche Selective Marketing
  54. 54. ENTERING YOUR NICHE MARKET - STRATEGIES Session 4
  55. 55. Entering your niche ■ In addition to choosing the appropriate marketing strategy, it is crucial to determinethe timing of the introduction of your nicheproduct or service. – Should you be the pioneer of the niche product or service? – Is being an innovator worth the risk? – Is it better to wait and learn from the experiencesof the first entrant to the market? – If you are a pioneer, what can you do to prevent share erosion when a new player enters the market? – If you are a late entrant, what strategies should you adopt to make your entry successful?
  56. 56. Entering your niche ■ In determiningan entry strategy into your niche market there are various factors that need to be considered however, one critical factor that should not be overlooked is that of COMPETITION. – Are there any competitors at all in your niche market? – Is the competition significant or can you get a portion of their market share? – What tactics and strategies is the competition using to get maximum market share and attract more customers? how can you punch holes in their strategy to your advantage?
  57. 57. Entering your niche ■ Studies show that it costs more to be a pioneer in a niche market. Let’s understand who a pioneer is. – Productpioneer: first firm to develop a model or sample in a new product/service category – Market pioneer: first firm to sell in a new product/service category – The first product/service to enter the market ■ Whicheverthecase, your institution is the first in terms of a specific product/serviceor in terms of a new market
  58. 58. Entering your niche ■ Why is it expensive to be a pioneer? – Introducing a new/nicheproduct or service requires a higher investment in research and developmentthan product/serviceimitation, and – The necessary marketplace education and testing makes the pioneerspend heavily on advertising and promotion. A second or late entrant enjoys the fruits of the pioneer's labor
  59. 59. Entering your niche ■ On the other hand being first to the market provides a significant and sustained market-shareadvantage over later entrants. ■ Why? Because the pioneer: – owns the positive image and reputation of being a pioneer, – creates a base of loyal customers – gains a competitiveadvantage – is rewarded with huge profit margins and – retains a monopoly-likestatus – can make imitation by competitors as difficult as possible
  60. 60. Entering your niche ■ Notwithstanding, late entrants into a niche market can also succeed byadopting distinctive positioning and marketing strategies. ■ As a late entrant seekingto discourageany more newcomers, as well as establish yourself in the market, you need to have a thorough understandingof the strategies available to you. ■ Some of these are discussed
  61. 61. Strategies for late entrants ■ Common attacking methods used by late entrants Price discounts Cheaper products/ services Prestige products/ services Product proliferation Service innovation Distribution innovation Product innovation Process innovation Advertising innovation
  62. 62. Strategies for pioneers • A simple strategy is to match any price cuts by the competition with similar discounts, as long as the price war does not get out of hand and erode profits Pricing • Adding new features or capabilities can be a positive and appealing way of countering a competitive challenge. Features • A company can respond to competitor price-cuts or new features by emphasizing after-sales customer care, implicitly demonstrating that it stands by the superiority of its products. Service • A strong public campaign demonstrating commitment to the market, confidence in the products, or a willingness to meet the competitor’s challenge. Advertising
  63. 63. Entering your niche ■ Based on our discussion on how to enter your niche market you may now be in a position to determinewhat strategies to adopt in case you are the pioneer or late entrant. ■ Questions??
  64. 64. Resources ■ Anand Srinivasan - Business.com : ‘Your Mark: How to Carve Your Own Niche In a Saturated Market’ ■ www.PittmanUnlimited.com – ‘How to Define a Niche in Your Target Market’ ■ Hakan Köroğlu, Kazim Bayram & Kübra Sulukan – ‘Niche Marketing’ ■ Gurumurthy Kalyanaram and Ragu Gurumurthy – ‘Market Entry Strategies: Pioneers Versus Late Arrivals’ ■ David Lavenda - 10 Steps For Successfully Launching A New Product Or Service ■ Kevin Donnelly - How to Use Niche Marketing to Build a Business from the Ground Up

×