What is the name of the marketing strategy that targets a smaller market with specific needs?

Niche marketing is a strategy that focuses on targeting a smaller, specialized segment of the market that has distinct preferences or needs. This approach allows businesses to tailor their products, services, and marketing efforts to meet the specific desires of this select group, creating a strong value proposition and fostering customer loyalty. By honing in on a niche, companies can often face less competition and achieve a stronger market presence within that particular segment.

The effectiveness of niche marketing comes from thoroughly understanding the unique characteristics of the target market, allowing for personalized communication and offerings that resonate more deeply with consumers. This strategy contrasts with broader approaches like mass marketing, which aims at a wide audience without focusing on specific needs. Therefore, niche marketing is particularly advantageous when a business has a well-defined target audience and seeks to establish a strong competitive advantage by catering specifically to their preferences.