When consumers are sufficiently alike in their wants, then a company
can decide to have a homogenous approach to target the whole market
with one particular product or service. However, today it is very
difficult to think of many products that are marketed this way
considering consumers' proliferating needs.
A market segment is a large identifiable group of consumers that
differ in their needs, perceptions and buying behaviour from other
population groups. When companies segment the market into identifiable
groups they adapt their offers to meet the wants of one or more
Niche markets are sub groups within segments. Niches are narrowly
defined segments that are usually identified as a result of dividing
a segment into sub-segments. For example the short-stay holiday
market can be further divided into 18-30s, couples, young families
or over 50s niche markets. Opting for this type of segmentation
could allow a smaller market player to concentrate its limited
resources on a smaller, yet clearly defined segment that could
be overlooked by larger competitors. Some players in the market
like Bournemouth International airport want to explore niche markets
in the future.
Brace, Sales & Marketing Manager,
Bournemouth International Airport.