The niche marketing strategy is probably the most efficient marketing strategies when it comes to a limited marketing budget in an organization. When an organization creates its product or identifies the service that it will provide it has to identify its consumers. Therefore, in order to save money on marketing the product or service to a broad specter of possible consumers, the organization concentrates on a particular market segment, or in other words – niche.
The organization will achieve fastest profits and will attain consumer liability the quickest at the lowest cost. Only after the attainment of this niche the organization should proceed in attaining other market segments. However one of the biggest negative aspects of the niche marketing strategy is that the price elasticity rarely depends on the demand for the end product regardless of the quality. The product or service was aimed from the beginning to satisfy the required brand recognition.
One of the most obvious industries that had adopted this marketing strategy is the telecommunications business industry. In John Gamble’s and Arthur Thompson’s book many industries were mentioned, but even though we were witnesses of the development of the telecommunication industry, it was left without attention. Probably the brightest example of the marketing niche strategy in television is MTV. This television company was music orientated at teenagers and young adults from 12 to 25 years of age.
The company not only plays popular for such age groups music videos, it also produces multiple television shows that are popular mostly among this niche. Over the years of MTV’s existence it has proved to being successful, meanwhile it does not leave behind its old niche in search of older viewers. MTV expands its market segment by differentiating into multiple styles of music. Therefore, the success of this marketing strategy is seen from the face of MTV being the most popular and the most watched music television company.