Explain why a manufaturer who has a niche market would be at an advantage?

Helpppp................Helpppppppp

If you understand "niche" to be "placed" or "comfortable" then you should understand why they have the advantage

Precisely coz they'd always have a defined and certain market. This is granted that there are not too many other brands/competitiors also positioned in that market. In that case, you'd have to have to have an edge one way or another--be it via a price advantage, better vaue for money, higher equity, etc.

Every answer so far is partially right, as is this one.

A niche manufacturer has found a market that is small, and has a very steady demand, but one that has little or no competition. Therefore, the manufacturer is free to charge a price that is very profitable.

The volume is small, but the margin is high. With just a little volume, that can be very profitable.

The drawback is that, in an instant, a niche market can be flooded by a bunch of manufacturers looking to expand their markets. It can disappear in a heartbeat.

Niche marketing is a successful and growing marketing trend, in large measure, because it takes advantage of current social trends in a way traditional marketing cannot.

We live in a diverse society comprised of relatively small groups with specific interests. Attempts to reach everyone are doomed to fail because of this diversity. Marketers once believed in a variation of the â€œmelting potâ€ theory, believing that assimilation within a society would lead to common characteristics that could be tapped by a savvy sales expert. Although there is truth to this perspective, we are learning that smaller market segments are retaining unique characteristics and interests. In fact, the melting potâ€™s ability to bring us together is having the once unforeseen marketing consequence of producing smaller, more insulated groups.

Our increasingly globalized world, as long predicted, is making us more alike. Simultaneously, however, it is allowing us to pursue very individualized and particularized interests. The internet, in particular, facilitates the creating of niches. Oneâ€™s interest in saltwater aquariums, for instance, would have been a relatively individual project only a few years ago. Now, due in large measure to the ease of communication afforded by the internet, one can join and interact with other saltwater aquarium aficionados easily. What was once an unconnected collection of interested individuals has been transformed into a legitimate, albeit niche, market segment.

Smart marketers have realized the internetâ€™s power to serve as a home to smaller market niches and that traditional marketers may fail to adequately serve these virtual communities. For instance, there is a vibrant saltwater aquarium community online, but who is really trying to win their business outside of a few companies who are already well known within the community? The answer, a fortunate one for niche marketers, is that relatively few people are making a legitimate effort at supplying the community with informational and other products. The internet has made it much easier to be a niche marketer or provider

Niche marketer always has an advantage of Marketing his products. Advantages are..

Less competitors ---more penetration into market----- more number of leads-----More profits..

But the problem only arises with Strong Rivals in that niche market OR CashCows of Conglomerates.

Very simple... it is easier to be a big fish in a small pond than a small fish in the ocean.

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