When creating a marketing strategy, there are two main factors to take into account – your budget for advertising and your target audience. A larger budget often allows for more options and can increase the chance of success. On the other hand, a centralized focus on a target audience for a smaller business can be more worthwhile. There are two strategies on each side of the marketing spectrum: mass marketing and niche marketing.
Mass marketing is a tool often utilized by bigger companies that have a larger advertising budget. Such companies will pool their resources to advertise a single product or service to as many people as they can without taking into account how various parts of the market will respond. An example of this is a fast-food chain promoting a cheeseburger at all of the franchises to create a demand for the product.
The downfall of mass marketing though is the limited appeal for the product or service. Not all consumers think alike, so what thrives for one demographic or in one region may not necessarily have the same appeal in another.
Niche marketing on the other hand, explicitly targets their message and offerings, focusing on audiences that have shown interest in the product or service a company has to offer. Essentially, niche marketing addresses a need for a good or service that is not being met by mainstream providers. This does not necessarily mean that the market is small. It does, however, involve a specific audience with a specialized offering.
One of the most significant advantages of niche marketing is the limited competition under the respective segment. The company that targets audiences in a niche market tend to become a market leader in that segment. It also often results in a robust consumer-customer relationship, since the company is operating in a smaller division, thus developing a bond between the company brand and customer loyalty.
Depending on the type of business you operate, mass marketing may be more ideal than niche marketing, and vice versa. Many small businesses often lean towards the niche marketing avenue, as they do not necessarily need to reach a massive audience like a larger company, such as a fast-food chain, would.