11 December 20
When you are in need of new shoes, you go to a shoe store. In this case, a shoe store is considered as an ideal market because customers feel the store serves a solution for their needs. If you are a skater who needs a new pair of skating shoes, then you are going to a market which sells one. The said skating shoes is what we called a niche market. Niche market and ideal market are similar. But, they are not the same. Milestone, as one of the leading brand consultant agencies in Indonesia, knows there are differences between the two, especially their customers.
Ideal market is a market full of ideal customers, people who use your products or services as the solution of their needs. To make an ideal market, you have to consider several things, such as the target customer who would buy the products or services, the amount of money your target consumer would spend, and the strategy to attract them. It is successfully called ideal market when the customers can relate with the value of the products or services.
For a niche market, it is a different story. According to Tefvik Dalgi, Professor at the School of Management of University of Texas, customers of niche market consist of a small group who have similar needs. Niche market focuses on a unique target market. They are serving products or services that are not being addressed by the mainstream market. It is a limited market with fixed specialization, product differentiation, customer focus, and relationship marketing. This strategy prioritizes one group of customers who would bring the most benefits.
Both types of markets have their own target customers. It is important to identify your brand’s strengths, conduct industry research, potential customers, and do reviews for the brand strategy to find the best approach for your business.