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Niche Marketing vs Product Diversification – What’s Best For The Awards Industry

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The debate of engaging in niche marketing vs product diversification goes a little back in time. You must have heard financial experts say not to put all of your eggs in the same basket. While it holds true for most cases, one may wonder whether it is actually true for business as well?

If you engage in product diversification, that will mean that you will have a lot of products to sell. This might generate revenue streams only if the strategy stands the test of time. And that is a big IF.

On the other hand, the niche market will allow you to focus on your flagship product. The general opinion is that niche marketing limits your revenue streams. Read on to find out whether it is actually true or not.

What Is Meant By Niche Marketing

Niche marketing is a type of advertising that is immensely targeted. Businesses use niche marketing to sell their goods and services to a targeted audience that is small, precise, and well-defined.

Many companies use this method to assist marginalized populations while also reaping the benefits of brand loyalty.

Marketing

However, businesses must first identify their expertise before they can start engaging in niche marketing.

Niche markets are subgroups of bigger markets with their own set of tastes and requirements distinct from those of the broader market. For example, the “cosmetics” industry is large, yet inside that market, there are cosmetics for problem skin, cosmetics for professional artists, etc.

Marketing to a specific target is often less complicated than marketing to a large audience. Niche audiences have unique demands and desires, which are challenging to meet.

For example, a company that just sold handbags would have to appeal to a diverse variety of interests and expectations in order to succeed. With the advent of tools such as Facebook marketing and social networks monitoring, it has become convenient to promote to specific audiences.

What Is Meant By Product Diversification

Product diversification is a strategy businesses use to broaden the scope of an item’s target market beyond its original planned market.

Product diversification typically comprises the addition of a new item to an established product line, including the latest tech or increasing the availability of existing products in order to attract new market segments.

However, although product diversification is typically considered a technique for improving the total salability and revenue of a product line, corporations may utilize it to solve a range of other issues.

Product diversity has several advantages. Businesses can use it for various reasons, ranging from preventing financial loss to anticipating a society transition, to name a few. Though it depends on the company’s individual circumstances, the strategy offers a number of benefits.

Product diversity can assist businesses in developing strong brands that have high exposure. Customers are more likely to recognize and recall brands that provide a greater number of options and variations within their product or service offerings.

It can be a huge advantage for businesses looking to grow their earnings while also increasing customer loyalty.

Niche Marketing and The Awards Industry

While we have discussed niche marketing in detail, let us now discover what niche marketing has in store for the awards industry.

Awesome Award

It is no secret that the awards industry is a very personalized one. It is also true that niche marketing revolves around only one thing-establishing the right connections. This provides more reasons for the awards industry to engage in niche marketing.

Following are some of the pros and cons that niche marketing entails for the awards industry.

Pros:

  • With the help of niche marketing, the awards industry can generate brand loyalty and work towards retaining customers. There are more opportunities to create deep and valued relationships with clients when fewer customers are in a niche audience. Many niche clients are likely to return for more purchases.
  • There will be lesser competition. The greater the degree to which your brand is specialized, the fewer rivals there will be who would be selling the same thing as you. A niche is a part of your unique selling proposition (USP) and a technique to distinguish yourself in the industry.
  • The marketing budget will be spent where it is supposed to be with niche marketing. The audience will become more familiar with the awards industry as they use tools for refined targeting possibilities to learn more about them. This makes the marketing budget spending more effective.

Cons:

  • The awards industry might not get enough market recognition through niche marketing.

Product Diversification and The Awards Industry

Even though the awards industry is very personalized, product diversification may have something in store for the awards industry as well.

Pros:

  • It is a known fact that product diversity can help a business weather a slump in its industry. The same stands true for the awards industry as well.
  • Product diversification can increase the hold of a certain brand over a market. In this case, the awards industry should put innovative ideas to the test just so that they overshadow the market.
  • In case the awards industry goes for product diversification, it will become the household name among the concerned sectors.

Cons:

  • Product diversification does not sit right with the awards industry, given the fact that most of the customer base belongs to the business community.

What Is The Best Option For The Awards Industry?

In all honesty, as per the market dynamics, niche marketing goes well with the awards industry. Since the target audience is mainly the corporate sector, it is only wise that the awards industry sticks to niche marketing.

Conclusion

The choice between niche marketing and product diversification is a tough call. One needs to carry out proper market evaluations before actually reaching a decision.

However, there is a rule of thumb that you can follow. Product diversification will help if your products are intended for the open market.

But, if your product is based on a B2B approach, there is no better option than niche marketing. So, if you want to get hold of some of the most amazing awards, hop on to Dell Awards!

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