Segmentation and Niche Marketing

An excellent article in the most recent issue of Adveritsing Age http://adage.com/cmostrategy/article?article_id=117005 summarizes a study by Booz Allen Hamilton that contains an interesting and compelling insight about the evolution of market segmentation. Using the statement that niche marketing is about narrow not small, the important concept is that traditional marketing segmentation looks for commonalities within a diverse group of consumers, while the philosophy today is to look for differences within a common group. Think about that for a moment. Instead of seeking common features among a broad base of consumers to define a segment, today marketers look at a common group of consumers and look for differences (niches). These niches represent comfort zones of consumers. Marketing to these consumers in ways that appeal to these zones makes the brand a part of their lives and lifestyles. Rather than trying to make a broader brand appeal to number of sgements by communicating in different ways, make the brand appeal deeply to a specific niche within a common group. Thought-provoking.