Which segmentation strategy focuses on micro-targeting specific groups of consumers?

Niche marketing is a segmentation strategy that specifically targets distinct and specialized groups of consumers. This approach concentrates on understanding the unique needs, preferences, and behaviors of these smaller segments rather than trying to appeal to a broad market. By honing in on a specific group, businesses can tailor their products, services, and marketing efforts to match the distinct characteristics of this segment.

This strategy allows companies to build deeper relationships with their chosen customer base, often creating a loyal clientele that feels valued and understood. It is particularly effective in markets where consumers are looking for specialized products or where competition is less fierce, allowing a business to dominate a specific niche rather than competing in a crowded market.

Mass marketing, on the other hand, aims to reach as many consumers as possible without specific targeting. Geographic segmentation divides the market based on location, while demographic segmentation focuses on specific demographic variables such as age, gender, or income. These approaches do not involve the same level of refined targeting as niche marketing does.