Marketing Niche Strategy Strategies

Synthesis

The purpose of this paper is, through the appliance of the ‘explanatory synthesis’, to introduce the concept of ‘niche’ as an applied, strategic approach for businesses. To create a more comprehensive understanding of ‘niche strategy’, this paper will first introduce the concept of ‘niche markets’, to which efforts will, once again, be shifted back to the capital focus of the paper; ‘niche strategy’. For the purpose of this assignment and length limitations inherent to it, this paper will not enter an elaborate discussion of the complications of ‘niche strategy’, but rather serve as an introduction and steppingstone to further exploration.

Within the world of strategic management and marketing, there is a fundamental assumption that

However, within the world of strategic management and marketing, there is not, at the most fundamental conceptualisation of ‘niche’ in business context, a clear distinction whether “niche marketing is a generic strategy, an applied marketing strategy or an extreme case of a marketing segmentation strategy” (K. Toften, T. Hammervoll, 2012:273).Whilst there are no widely accepted definition of what exactly ‘niche strategy’ or ‘niche marketing’ is, there are various interpretations, that collectively serve to explain the concept (K. Toften, T. Hammervoll, 2012). According to Teplensky (1993), a ‘niche strategy’ is to put “an emphasis on a particular need, or

Parrish, N. Cassil, W. Oxenham, 2006). According to McKenna (1988) niche marketing relies heavily on ‘word-of-mouth’, which in turn means that a business pursuing a ‘niche strategy’ must build up a solid reputation, as they are not only marketing their product, but their business as a whole (ibid.). The notion of relationships within ‘niche strategy’ is, much like with reputation, heavily emphasised as it generates a protective barrier. Through long-term relationships with both customers and suppliers alike, a business is able to guard from potential competition as well as ensuring sustainable business (ibid.). Furthermore, Michaelson (1988) denotes that it is imperative to ‘niche strategy’ that the given business is capable “to offer the customer a clearly differentiated product that fills (or creates) a need.” (Michaelson, 1988: 23, cited in E. Parrish, N. Cassil, W. Oxenham, 2006: 698). Dalgic and Leeuw (1994), on the other hand, assumes a more pragmatic approach towards success factors and instead stipulate five essential factors to ensure growth: “positioning, profitability, distinctive competences, small market segments, and adherence to the market concept” (E. Parrish, N. Cassil, W. Oxenham, 2006: