Small and Medium Scale enterprises in Nigeria have resorted to niche marketing to provide a product or service that focuses on specific client group’s needs, online store, Kaymu.com.ng, has said.
The Managing Director of the online marketplace, Mr. Massimiliano Spalazzi, in a statement on Friday, explained the concept of niche marketing and its impact on SMEs in Nigeria.
He said, “A niche market defines the product features aimed at satisfying specific target audience. It is the act of segmenting the market for a specific product and marketing intently to a small subset of the market.”
According to Spalazzi, niche marketing provides an attractive opportunity for SMEs to compete against the scale economies that mass marketing competitors are able to achieve.
As opposed to mass marketing, niche marketing encouraged business owners to stake out unique market spots especially online, he added.
Niche markets, he explained, consisted of groups of customers who had a similar demographic, buying behaviour and lifestyle characteristics. Understanding target customer segments, he added, was a crucial factor in determining whether an operation had the resources, interest and business elements necessary to meet the needs of the prospective consumers.
Spalazzi said,“It is no doubt the Internet is here to stay and has brought with it amazing opportunities like marketing a niche product to a wider audience. Small scale business owners on Kaymu.com.ng are using the online marketplace and leveraging online platforms to grab the attention of their target audience, and obtain a wider audience reach while taking full advantages of the marketing opportunities provided by the online marketplace.”
He said many Nigerians appreciated the convenience and speed of online shopping, adding that SMEs who operated niche markets made use of online marketplace to grow the size and reach of their targeted operations.