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ferent messages it also requires a lot of resources to use this method but investing all the time money and resources into differentiated marketing can be worth it if done correctly as the different messages can successfully reach the targeted group of people and successfully motivate the targeted group of people to follow the messages that are being advertised ramya subasakthi concentrated marketing or niche marketing edit niche marketing is a term used in business that focuses on selling its products and services solely on a specific target market despite being attractive for small businesses niche marketing is highly considered to be a difficult marketing strategy as businesses may need thorough and in depth research to reach its specific target market in order to succeed 31 according to caragher 2008 32 niche marketing is when a firm company focuses on a particular aspect or group of consumers to deliver their product and marketing to niche marketing is also primarily known as concentrated marketing which means that firms are using all their resources and skills on one particular niche niche marketing has become one of the most successful marketing strategies for many firms as it identifies key resources and gives the marketer a specific category to focus on and present information to this allows companies to have a competitive advantage over other larger firms targeting the same group as a result it generates higher profit margins smaller firms usually implement this method so that they are able to concentrate on one particular aspect and give full priority to that segment which helps them compete with larger firms 32 some specialities of niche marketing help the marketing team determine marketing programs and provide clear and specific establishments for marketing plans and goal setting according to hamlin knight and cuthbert 2015 33 niche marketing is usually when firms react to an existing situation there are different ways for firms to identify their niche market but the most common method applied for finding out a niche is by using a marketing audit this is where a firm evaluates multiple internal and external factors factors applied in the audit identify the company s weaknesses and strengths company s current client base and current marketing techniques this would then help determine which marketing approach would best fit their niche there are 5 key aspects or steps which are required to achieve successful niche marketing 1 develop a marketing plan 2 focus your marketing program 3 niche to compete against larger firms 4 niche based upon expertise 5 develop niches through mergers 32 develop a marketing plan developing a market plan is when a firms marketing team evaluates the firms current condition what niches the company would want to target and any potential competition a market plan can consist of elements such as target market consumer interests and resources it must be specific and key to that group of consumers as that is the speciality of niche marketing 32 focus your marketing program focusing your marketing program is when employees are using marketing tools and skills to best of their abilities to maximise market awareness for the company niche marketing is not only used for remaining at a competitive advantage in the industry but is also used as a way to attract more consumers and enlarge their client database by using these tools and skills the company is then able to implement their strategy consistently 32 niche to compete against larger firms smaller and medium sized firms are able to compete against niche marketing as they are able to focus on one primary niche which really helps the niche to grow smaller firms can focus on finding out their clients problems within their niche and can then provide different marketing to appeal to consumer interest 32 niche based upon expertise when new companies are formed different people bring different forms of experience to the company this is another form of niche marketing known as niche based on expertise where someone with a lot of experience in a specific niche may continue market for that niche as they know that niche will produce positive results for the company 32 developing niches through mergers a company may have found their potential niche but are unable to market their product service across to the niche this is where merging industry specialist are utilised as one company may have the tools and skills to market to the niche and the other may have the skills to gather all the necessary information required to conduct this marketing according to caragher 2008 32 niche marketing if done effectively can be a very powerful concept 32 overall niche marketing is a great marketing strategy for firms mainly small and medium sized firms as it is a specific and straightforward marketing approach once a firm s niche is identified a team or marketers can then apply relevant marketing to satisfy that niche s wants and demands 32 niche marketing also closely interlinks with direct marketing as direct marketing can easily be implemented on niches within target markets for a more effective marketing approach direct marketing edit direct marketing is a method which firms are able to market directly to their customers needs and wants it focuses on consumer spending habits and their potential interests firms use direct marketing a communication channel to interact and reach out to their existing consumers asllani halstead 2015 direct marketing is done by collecting consumer data through various means an example is the internet and social media platforms like facebook twitter and snapchat those were a few online methods of which organisations gather their data to know what their consumers like and want allowing organisations to cater to what their target markets wants and their interest lund marinova 2014 this method of marketing is becoming increasingly popular as the data allows organisations to come up with more effective promotional strategies and come up with better customize promotional offers that are more accurate to what the customers like it will also allows organisations to uses their resources more effectively and efficiently and improve customer management relationships an important tool that organisations use in direct marketing is the rfm model recency frequency monetary value asllani halstead 2015 despite all the benefits this method can bring it can be extremely costly which means organisation with low budget constraints would have trouble using this method of marketing online targeting edit see also online advertising digital communications have allowed marketers to segment markets at ever tighter levels right down to the individual consumer 34 this process is known as micromarketing cyber segmentation or hyper segmentation in effect this allows to the marketer to pursue both a differentiated marketing strategy and a niche marketing strategy to reach the smallest groups in the marketplace 35 hyper segmentation relies on extensive information technology big databases computerized and flexible manufacturing systems and integrated distribution systems data is captured from electronic communications devices mapped and logged with a management information system this enables the integration of observed behaviour domains accessed with motives content involvement geographics ip addresses demographics self reported registration details and brand preferences site loyalty site stickiness additional data inputs might include behavioural variables such as frequency site visits diversity including visitation across different landscapes and fluidity spanning multiple time periods programmed business intelligence software analyses this data and in the process may also source data inputs from other internal information networks 36 marketers and advertisers can then use an inventory of stock images and phrases to compile customised promotion offers in real time which are delivered to prospective purchasers with a strong interest in the product or who are in an advanced state of buyer readiness 37 with increased availability of electronic scanner data there has been a greater focus on research of micromarketing and pricing problems that retailers encounter research in 1995 by stephen j hoch et al provided empirical evidence for the micromarketing concept in 1997 alan montgomery used hierarchical bayes models to improve the estimation procedures of price elasticities showing that micromarketing strategies can increase gross profits 38 with the advent of social media advertising has become a more efficient at reaching relatively small target audiences 37 people are constantly exposed to advertisements and their content which is key to its success in the past advertisers had tried to build brand names with television and magazines however advertisers have been using audience targeting as a new form of medium 39 the rise of internet users and its wide availability has made this possible for advertisers 37 targeting specific audiences has allowed for advertisers to constantly change the content of the advertisements to fit the needs and interests of the individual viewer the content of different advertisements are presented to each consumer to fit their individual needs 40 the first forms of online advertising targeting came with the implementation of the personal email message 41 the implementation of the internet in the 1990s had created a new advertising medium 42 until marketers realized that the internet was a multibillion dollar industry most advertising was limited or illicit 43 many argue that the largest disadvantage to this new age of advertising is lack of privacy and the lack of transparency between the consumer and the marketers 44 much of the information collected is used without the knowledge of the consumer or their consent 44 those who oppose online targeting are worried that personal information will be leaked online such as their personal finances health records and personal identification information 44 advertisers use three basic steps in order to target a specific audience data collection data analysis and implementation 37 they use these steps to accurately gather information from different internet users the data they collect includes information such as the internet user s age gender race and many other contributing factors 40 digital communications has given rise to new methods of targeting 37 addressable advertising behavioral targeting location based targeting reverse segmentation a segment building approach rather than a segmentation approach these methods rely on data collected from consumer browsing histories and as such rely on observed behaviour rather than self reported behaviours the implication is that data collected is much more reliable but at the same time attracts concerns about consumer privacy many internet users are unaware of the amount of information being taken from them as they browse the internet they don t know how it is being collected and what it is being used for cookies are used along with other online tracking systems in order to monitor the internet behaviors of consumers 45 many of these implemented methods have proven to be extremely effective 46 this has been beneficial for all three parties involved the advertiser the producer of the good or service and the consumer 37 those who are opposed of targeting in online advertising are still doubtful of its productivity often arguing the lack of privacy given to internet users 47 many regulations have been in place to combat this issue throughout the united states 48 see also edit demographic profile market segmentation mass marketing marketing strategy niche market precision marketing serviceable available market total addressable market positioning references edit pride w m hughes r j kapoor j r foundations of business cengage learning 2012 p 311 williams c mcwilliams a and lawrence r mktg 3rd asia pacific edition cengage australia 2017 p 90 verma h g services marketing text and cases delhi pearson 1008 p 219 pride w m hughes r j kapoor j r foundations of business cengage learning 2012 p 311 sherlock tracie 25 november 2014 3 keys to identifying your target audience database business source complete retrieved 23 march 2016 chapman devenish dhall norris 2011 business studies in action milton qld australia john wiley sons australia ltd pp 190 196 cite book cs1 maint multiple names authors list link pride w m and ferrell o c marketing mason oh cengage 2010 p 160 wedel michel kamakura wagner a 2000 market segmentation springer international series in quantitative marketing vol 8 doi 10 1007 978 1 4615 4651 1 isbn 978 1 4613 7104 5 percy rossiter elliott 2001 target audience considerations in strategic advertising management 2001 target audience considerations strategic advertising management retrieved 23 march 2016 cite web cs1 maint multiple names authors list link cohen a w the marketing plan john wiley sons 2005 a b pride w m and ferrell o c marketing mason oh cengage 2010 p 174 pride w m and ferrell o c marketing mason oh cengage 2010 p 176 applbaum k the marketing era from professional practice to global provisioning routledge 2004 p 33 35 marketing insider evaluating market segments online http targetmarketsegmentation com target market secondary target markets perdue r target market selection and marketing strategy the colorado downill ski industry journal of travel research spring 1996 pp 39 46 gaston breton charlotte martín martín oscar 2011 international market selection and segmentation a two stage model international marketing review 28 3 267 290 doi 10 1108 02651331111132857 strydom j introduction to marketing juta and company 2005 p 77 rossiter j and percy l advertising communications and promotion management n y mcgraw hill 1997 p 159 kotler p marketing management millennium edition custom edition for university of phoenix prentice hall 2000 p 9 mccarthy jerome e 1964 basic marketing a managerial approach homewood il irwin what is marketing mix smallbusiness chron com retrieved 2016 03 31 everyday finance economics personal money management and entrepreneurship overview marketing mix product price place promotion everyday finance economics personal money management and entrepreneurship january 1 2008 archived from the original on august 28 2017 michael r czinkota ilkka a ronkainen june 25 2013 international marketing cengage learning p 24 isbn 978 1 133 62751 7 n h borden 1964 the concept of the marketing mix journal of advertising research 2 7 n h borden 2001 the concept of the marketing mix in m j baker ed marketing critical perspectives on business and management vol 5 routledge pp 3 4 borden credits his colleague james culliton with the concept of marketers as mixers of ingredients which inspired him to coin the phrase marketing mix however borden claims credit for the term and certainly contributed to the process of popularising the conce...