The Emergence and Role of Niche Markets

Moreover, niche market is also diverse and plays a critical role in niche tourism as it promotes sustainability and meets the various desires and needs of specific population in the tourism sect hence emphasis on the niche market strategy. Table of Contents 1. 0 Introduction 4 2. 0 Emergence of Niche Markets… 5 2. 1 The Causes of the Emerging of the Niche Markets 5 2. Thus, establishing a niche market entails a business fine-tuning of its marketing to concentrate on a specific population of consumers, products, and services. So, a market niche is well-defined as a company’s product feature intended to satisfy particular market needs, its products prices, production quality and the population the product is purposed to impact such as sports or television shows. Hence, a niche market is envisioned to promote the survival of any business in the course of its getting competition from its rivals.

A company’s choice to establish a niche market implies that the firm chooses to play a part in its strengths and highpoint the for the population with whom it resonates the most, therefore, affording the enterprise numerous benefits from market establishment to profit increase. Like this, this report shall focus on the emergence of niche markets and evaluate the critical role they play in the tourism sect while citing several illustrations of nations that apply the concept in their tourism stand the benefits that the approach mentioned above renders in marketing. It was during this period that Jerome McCarthy coined the four P’s of marketing in 1960 in his book Basic Marketing after which Neil Borden coined the concept of Marketing Mix in his famous article “The Concept of Marketing Mix” (Insivia, 2015, n.

p). Subsequently, the 1970s era was marked by an even more customer-driven orientation. Businesses were able to gain a better comprehension of their consumer base, their preferences and how they valued particular attributes following the emergence of conjoint analysis as an applied market research technique. In the early 1970s, the mentioned led to the very first e-commerce transaction following a couple of scholars from Stanford Artificial Intelligence Laboratory application of the ARPANET network (the very original interface to integrate the TCP/IP protocol)to organize the market of marijuana (Insivia, 2015, n. Additionally, amongst the fundamental strategies to a successful marketing campaign is the identification of an enterprise’s consumers, their needs and preferences and acknowledgment of their entry points (Insivia, 2015, n.

p). Besides, new demands, altering consumer motivations and further personalization in both businesses to consumer marketing and business to business marketing have developed a host of different and split markets that are divergent from the traditional mass markets. Accordingly, niche markets megatrends have primarily been motivated by technology. As a fact, large corporations have been proved to be in dire need of niche markets to maintain, control and expand their presently held markets hence facilitating the spread of the markets in the present epoch competitive market. Role of Niche Markets 3. 1 Significance of Niche Markets Niche markets play a critical role not only in the establishment of a company’s market in the face of competitiveness but also in profitability. Essentially, serving niche markets enables entrepreneurs to launch a business with limited capital alongside limiting the competition the enterprises face from well-established or instead capitalized entities.

Mostly, established corporations and professional venture capital funds pay out substantial costs on the evaluation and monitoring exercises of their investments. As such, the corporations tend to avoid investments in niche opportunities whose dividend capability is not broad enough to cater their fixed evaluation and monitoring costs. The Body shop company leaped from a niche marketer to a global niche player similar to most companies that are characterized by their establishing niche markets at the first phases of their product life cycles as in the above-cited corporation example. The Body Shop company formed a niche market in cosmetics hence among the fastest developing and successful niche retailers founded on the vibrant comprehension of its consumer needs and unique positioning strategy. Thus, niche markets assist any corporations to focus on their consumer and respond fast to the dynamic changes in customer demand.

Therefore, niche markets significantly enable any business to be fair which implies positioning the consumer at the top of the management agenda and list of priorities. It is all about concentrating on the consumer, specializing on the consumer's distinct needs, exploring a better way of doing what the customer needs, valuing, educating and caring for the consumers which are the ultimate way that businesses unaffectedly make sense out of their operations (Dalgic, 2006, p. For example, the growth of music tourism associated with the change of culture in leisure pursuit that shifts towards mass culture. Accordingly, niche tourism offers a connection to new and mixed markets that is a fundamental area of future expansion of tourist destinations. The specializing feature similar to niche markets assists in acknowledging the competitive advantage in concentrating on the types of tourism products and market.

Thus, this implies that there still exists a bright future for niche tourism for its being proven as more sustainable approach compared to mass tourism (Robinson, Heitmann & Dieke, 2011, p. Subsequently, all tourist destinations comprise of exceptional elements of heritage and culture utilized for tourism purpose for instance wedding tourism in South Africa (Rogerson & Wolfaardt, 2015, p. During the 1970s, the area economy was slowly beginning to boost its economy following the introduction of other small industries such as metal crafting, construction, and other businesses. Despite the apparel industry dominating most of its economy, a structural economic transformation towards tourism was sought by the town municipality. Nevertheless, the chance to focus investment in tourism was stimulated by the economic collapse of prominent families in the region and integration of Portugal in the European Economic Community.

This was followed by the formation of the Municipal Management of tourism which was nominated amongst the best in 2011 (Dinis & Krakover, 2015, p. Correspondingly, the municipality took full control over tourism in the region with its advocacy for infrastructure and preservation of other the museum depicting the Jewish culture in the region developing heritage tourism in the area. In essence, the promotion of Jewish culture in Belmonte and other municipalities in the area was acknowledged as an attractive niche market as Jews cover approximately 16 million of the world population and spread in leadership, economic and communication positions. Hence, to the Mayor, this was a focal distribution point of the Jewish heritage (Dinis & Krakover, 2015, p. As the above table suggests, it is clear that the niche of the Jewish culture emerged as the leading attraction and especially for foreign visitors.