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Niche marketing Pros and Cons: would you lose your business if you only focusing on one niche?

Ok. Now it seems niche marketing is one way to quickly succeed with your business. However, everything in this world has its pros and cons. So what about niche marketing? There is no doubt that one can easily reach the target by focusing only in a most-significant niche in a small business.

Nevertheless, if your company is quiet big and capable of promoting it well too, then you can go for target markets. In case, a large company only focuses on a small niche, it means that it is losing on sales unless if it is not for specific reasons. However, does it mean that big companies can’t be successful with niche marketing? Yes. They can. How? Let’s say you own a large company that owes different business segments. So that for some segments you can only concentrate with specific niches. For an example, Wal-Mart has started marketing specific mugs that are especially designed for hunters in Africa.

Though you are big company, you still would have some business units that do not financially perform well and other segments, which are more profitable. I would recommend to allocate more budget for the cash cow segment (most profitable) when deciding on your promotional activities. Then for the units that do not financially perform well, you can stick with small niche and that niche should consist of customer who will definitely buy from you. Therefore, you can reduce on your production units and can too ensure that production does not exceed the demand from your small niche.

Mathu

PLease read the following articles for your better understanding of niches and marketing
Why small businesses should turn on niche marketing?
Different strategies of positioning your product
Understand the basic myths behind target markets

1 comments:

Your business will begin to attract more customers and generate more profits as you become clearer in defining who you are targeting in the marketplace, so it's worth putting in the effort to get this job done. what is content writing

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