Course: SLF 130 Marketing Practices for the Small Business

Unit 2 Reading

SubTabs

- Unit 2
- Table of Contents (Selected)
- Unit 2 Glossary (Selected)

Competitive Advantage page_3

Niche marketing can be thought of
as the big fish, small pond approach.
- Niche Marketing Strategy – the strategy most often employed by small local businesses that provide unique products, services, and customer service to a small group of targeted customers with whom they have built relationships. Niche marketing also EMBRACES customer-orientation as a part of its strategy.
ATTENTION SMALL BUSINESS OWNERS…HERE IS THE BOTTOM LINE on NICHE MARKETING!
Determine what a small group of interested customers need and want, satisfy those needs and wants, charge a fair (and profitable to you) price, continue to WOW them with your offerings and customer service, and you have developed a platform on which to build and maintain a small business.

Stop and Review:
A strategy is a purposeful and intentional plan to offer value to customers. The strategy chosen must be well

thought out and must represent a match between a marketer’s capabilities and resources and the sales objectives
that are set.

A competitive advantage is what one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment.

Different types of competitive strategies employed by businesses include:

- Cost Leadership Strategy - produce products and services at the lowest cost in the industry to serve mass audiences.
- Differentiation Strategy - provide products that are different or offer more/different features than competitors.
- Innovation Strategy - provide new and different products/services via added features, and new methods of production.
- Operational Effectiveness Strategy - perform internal business and/or manufacturing activities better than competitors.
- Customer-Orientation Strategy - focus on making customers happy through outstanding customer service.
- Niche Marketing Strategy - provide unique products, services, and customer service to a small group of targeted customers with unique needs and wants – AND, the ability to afford the products or services!