Focused strategies

The focused strategic concentrate on a niche of the market.Niche is a narrow piece of the total market.It is identify by dividing segment into sub segments.It consists of fairly small groups of customers whose needs have not been well served.They require special attention.
Focused strategic aim to serve buyers better in the market niche than the competitors.Such strategies can be two types:
a.Focused low cost:Lower cost buyers in the market niche market niche.Cost advantage is sought.

b.Focused differentiation:Differentiated product attributes that niche members perceive as better suited to their unique tastes and preferences.Special product attributed add new value.
The niche can be defined by :

• Demographic characteristics :For example,age,income,occupation.
  
• Geographical uniqueness:For example,Sherpas,of Himalayas.
• Specialized requirement :For example,for over sized people.
  
• Special product attributes :For example,Cotton clothes.

Market focus and competitive advantage :
Market focus enables to perform marketing activities better than competitors in the niche.It provide s competitive advantage which results from:

• Speed in developing new products that satisfy customers needs of the niche.First in the market.
• Low prices compared to the prices of competitors.
• Product differentiation and positioning in the niche.
• Customer loyalty resulting from effective customer relationship management in the niche.
• Cost effective distribution system in the niche.
• Effective promotion strategy with creativity in the niche.
• Favourable company image in the perception of customers of the niche.
• Better capacity in the customers service in the niche.
• Up-to-date marketing information system about the niche.
• Competitive advantage through market focus can be sustained if organization excels in outperforming competitors through strategic thrust in the chosen niche.