In niches there are riches
October 17, 2001 | 12:00am
Targeting a market is basic in any business. So, who’s your target? When you ask business operators and entrepreneurs that question, you usually hear something like: single proprietors, lawyers, pleasure seekers, or car owners.
If you define your target market this way, you are most likely not doing your homework. And you’re probably spending more marketing peso than necessary to promote your business, service, or product. Worse, you are not generating the sales and shares you should be getting.
A narrowing of your focus is necessary if you want target prospects – those likely to use your product or service – to notice you. And one of the best ways to do this is to find a niche. As marketing guru Philip Kotler said, "Marketers must move from focusing on large segments to targeting specific niches. In niches there are riches."
A niche market is a narrowly defined group of individuals who have the same specialized interests and needs, and who have a strong predisposition to buy what you are selling. And, as much as you would want, they are not, and cannot be, all people.
To illustrate, let’s go malling. Most if not all of our shopping malls have several shoe stores standing next to and across from each other. But are they after the same customers? Definitely not. Each has a distinct niche. One store lures active and adventurous men; another one pulls in school children; a third, which carries high-end ladies shoes, tempts young career women; while the fourth runs after low to middle-income and conservative women. Their products do not overlap.
Individual prospects in a niche market is easier to reach, and if bundled, will form a substantial and efficient group that can build a profitable volume of business. Besides, there is less competition when you are talking to a niche. You may have fewer eyes but you get more focused buyers.
A niche market enables you to direct your communication with great precision. The narrower you define your niche, the more convenient – and efficient – it is to provide for the needs of these people. More importantly, a highly defined niche market can insulate your product or service from competition.
And from Nov. 21 to 24, the subject of niche marketing will take center stage in the 17th Philippine Advertising Congress (PAC) at the Waterfront Hotel in Cebu City. Local and international marketing and consumer research experts will provide delegates a better understanding of highly focused markets, like the senior citizens or the "gray batch," families of overseas Filipino workers or OFWs, young men and women with alternative lifestyles or the gay bundle, and many more. The discussions can help businesses develop strategic plans and actions on how to effectively relate to these markets.
If you are in a business aspiring to attract a loyal niche market, consider taking the path that is not always straight ‚ the GAY MARKET. In fact, one of the TV commercials promoting the 17th PAC dramatizes the value of talking to this highly-focused behavior-differentiated market.
In the US, the visibility of consumers with alternative lifestyles – along with details on their spending patterns – has grown dramatically in the past few years. As Witeck-Combs Communications reports, "Growing competition among companies has also transformed a media trend into creative marketing strategies and future opportunities. Without question brand loyalty, value, and size of this coveted household demographic makes the opportunities too promising to overlook or mishandle."
With this development in first world markets, it would be interesting for the 17th PAC to find answers to these questions – Are there usage, attitude, and interest issues unique to the gay niche market in the Philippines?
What businesses or product and service categories can benefit by attracting the gay customers? What marketing mix makes sense? Will companies, products, or services experience backlash or win loyal customers?
The Trade Exhibits Committee of the 17th PAC reports that the exhibit location will be at Hall 1, Lobby Level of the Waterfront Hotel, Lahug. To date, booth reservations have reached more than 60 percent of total available spaces. Traditionally an attraction of past congresses, this year’s trade exhibit promises to showcase the latest in advertising media and production technology; and the not-to-be-missed fun, games, premium items, and entertainment.
Free time brings fun time to the mind suffused with new marketing communications ideas. Convention attendance is a must, but the whole congress experience will be more complete with full participation in the sports events.
Jimmy Alanis, Chair of the Sports Committee, announces the five events that delegates can choose from – Beach Volleyball at the Plantation Bay, Nov. 21; Ten-Pin Bowling, Ayala Recreation Center (ARC), Nov.22; 9-Ball Billiard, ARC, Nov.22; Golf, Alta Vista Golf & Country Club, Nov.23; and the 5K Fun Run, Osmena Blvd., Nov. 24.
Sign-up now. Call the Secretariat Office at 818-61-13 or 892-48-49. Look for Normie Del Rosario.
If you define your target market this way, you are most likely not doing your homework. And you’re probably spending more marketing peso than necessary to promote your business, service, or product. Worse, you are not generating the sales and shares you should be getting.
A narrowing of your focus is necessary if you want target prospects – those likely to use your product or service – to notice you. And one of the best ways to do this is to find a niche. As marketing guru Philip Kotler said, "Marketers must move from focusing on large segments to targeting specific niches. In niches there are riches."
To illustrate, let’s go malling. Most if not all of our shopping malls have several shoe stores standing next to and across from each other. But are they after the same customers? Definitely not. Each has a distinct niche. One store lures active and adventurous men; another one pulls in school children; a third, which carries high-end ladies shoes, tempts young career women; while the fourth runs after low to middle-income and conservative women. Their products do not overlap.
Individual prospects in a niche market is easier to reach, and if bundled, will form a substantial and efficient group that can build a profitable volume of business. Besides, there is less competition when you are talking to a niche. You may have fewer eyes but you get more focused buyers.
A niche market enables you to direct your communication with great precision. The narrower you define your niche, the more convenient – and efficient – it is to provide for the needs of these people. More importantly, a highly defined niche market can insulate your product or service from competition.
And from Nov. 21 to 24, the subject of niche marketing will take center stage in the 17th Philippine Advertising Congress (PAC) at the Waterfront Hotel in Cebu City. Local and international marketing and consumer research experts will provide delegates a better understanding of highly focused markets, like the senior citizens or the "gray batch," families of overseas Filipino workers or OFWs, young men and women with alternative lifestyles or the gay bundle, and many more. The discussions can help businesses develop strategic plans and actions on how to effectively relate to these markets.
In the US, the visibility of consumers with alternative lifestyles – along with details on their spending patterns – has grown dramatically in the past few years. As Witeck-Combs Communications reports, "Growing competition among companies has also transformed a media trend into creative marketing strategies and future opportunities. Without question brand loyalty, value, and size of this coveted household demographic makes the opportunities too promising to overlook or mishandle."
With this development in first world markets, it would be interesting for the 17th PAC to find answers to these questions – Are there usage, attitude, and interest issues unique to the gay niche market in the Philippines?
What businesses or product and service categories can benefit by attracting the gay customers? What marketing mix makes sense? Will companies, products, or services experience backlash or win loyal customers?
Jimmy Alanis, Chair of the Sports Committee, announces the five events that delegates can choose from – Beach Volleyball at the Plantation Bay, Nov. 21; Ten-Pin Bowling, Ayala Recreation Center (ARC), Nov.22; 9-Ball Billiard, ARC, Nov.22; Golf, Alta Vista Golf & Country Club, Nov.23; and the 5K Fun Run, Osmena Blvd., Nov. 24.
Sign-up now. Call the Secretariat Office at 818-61-13 or 892-48-49. Look for Normie Del Rosario.
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