1) What is niche marketing? The word ‘niche’ is defined as: A special area of demand for a products or service. The word ‘marketing’ is defined as: The opportunity to buy or sell. Niche Marketing means buying or selling a product or service in a special area of demand. All that really means product or service is being sold to the people who are most interested in that particular product or service and not to the world in general. Often time big businesses use niche marketing.
For example, a company that makes computers and computers accessories might advertise all-in-one such as copy, printer and scanner to the home computer user while at the same time advertising single function machines to large businesses. One of the things that make niche marketing so attractive to sellers is that their advertising budgets go further. It costs less to advertise to a specialized market that it does to advertise to a broader market.
Niche marketing must be designed to meet the unique needs of the targeted audience. Niche marketers must tailor their product to meet those unique needs. Example, I have design a product to make poodle grooming easy enough for the untrained professional to do it, those who own poodles will be most interested in the products. Those who own Blood Hounds or cats will not care so much. 2) As an automobile retailer, what would you propose to increase sales volumes through niche marketing?
Toyota is a huge multinational company. At first glance, it appears that Toyota focuses on the auto business as a whole both from a marketing and production standpoint. Notwithstanding this fact, Toyota is excellent when it comes to niche marketing. Toyota will search for niches for which it can supply a product in need. Toyota was one of the first companies to realize there was a group of car buyers who would be very interested in environmentally friendly cars. To answer this need, it came up with the legendary Prius.
The Prius is the first mass production hybrid car. Where other car manufacturers saw Toyota taking a huge risk, Toyota saw it as an opportunity to identify a new niche and establish its brand in that niche. In marketing, it is often the first brand on the scene that takes the day. Once Toyota took the plunge, it pursued an effective niche marketing plan. It didn’t promote the Prius in just any media. It focused on media outlets that were watched, read or listened to by people concerned about the environment.
For example, it heavily promoted the car through environmental groups and their publications. As the only game in town at that time, Toyota not only dominated the niche. 3) Explain the role of RMI. RMI create brand awareness and communication tools which have been use from any company’s. They publish their own magazine naming Automobil. RMI also responsible for assisting its members with all matters surrounding the motor industry while ensure that members do comply with high level of business and offers a revenue generating device through its unique niche status.