NICHE Marketing Strategy Challenges | Need for Market SEGMENTATION

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While niche marketing offers numerous advantages, such as targeting specific customer segments and catering to their unique needs, it also presents some challenges.
The biggest challenge here is the complexity associated with Market Segmentation. Identifying and defining niche market segments accurately can be challenging and cost-prohibitive.
Market segmentation requires a deep understanding of customer needs, preferences, and behaviors. In some cases, niche markets may be fragmented, with diverse sub-segments that require tailored marketing strategies.
For this reason, smaller businesses operating within niche markets may have limited resources for such a marketing activity compared to larger competitors. This can make it difficult to compete effectively for the attention and loyalty of niche customers.