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The Role of Niche Tourism Products in Destination - Repository ...

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ignored or neglected by others’ (Dalgic and Leeuw, 1994, p.42) and a ‘process <strong>of</strong> concentrat<strong>in</strong>g market<strong>in</strong>g resources and efforts on<br />

one particular market segment’ (Huh and S<strong>in</strong>gh, 2007, p.213). Kotler (2003) also characterises niche market<strong>in</strong>g as focus<strong>in</strong>g on<br />

customers, with a dist<strong>in</strong>ct set <strong>of</strong> needs, who will <strong>of</strong>fer a premium to the company who best fulfils these. Thus markets can be<br />

reached and served and products and services matched to people’s specific needs and wants. Dalgic and Leeuw (1994)<br />

summarise by say<strong>in</strong>g that niche firms generally focus their market<strong>in</strong>g activities to a limited part <strong>of</strong> the market, with relatively few<br />

customers and competitors, through the application <strong>of</strong> company specialisation, product differentiation, relationship market<strong>in</strong>g and<br />

customer focus.<br />

Huh and S<strong>in</strong>gh (2007) highlight how most studies published s<strong>in</strong>ce the 1990s have emphasised new segmentation with<strong>in</strong> exist<strong>in</strong>g<br />

marketplaces rather than identify<strong>in</strong>g new or niche markets. <strong>The</strong>y attribute four key criteria by which these markets are segmented:<br />

socioeconomic/demographic; geographic; psychographic and psychological and behavioural. <strong>The</strong> limited academic literature<br />

available has ma<strong>in</strong>ly focused on market specific factors centr<strong>in</strong>g on the characteristics <strong>of</strong> what a niche is and what causes it to exist<br />

(T<strong>of</strong>ton and Hammervoll, 2010; Jarvis and Goodman, 2005). Dalgic and Leeuw remark how ‘despite its grow<strong>in</strong>g <strong>in</strong>terest and<br />

<strong>in</strong>creas<strong>in</strong>g popularity there seems to have been limited research’ and exist<strong>in</strong>g research is ‘...predom<strong>in</strong>antly from a practitioner’s<br />

po<strong>in</strong>t <strong>of</strong> view’ (Dalgic and Leeuw, 1994, p.39). What are lack<strong>in</strong>g are studies focus<strong>in</strong>g on <strong>in</strong>ternal issues such as the strategic<br />

capabilities, <strong>in</strong> terms <strong>of</strong> skills and resources, which can differentiate companies from their competition (T<strong>of</strong>ton and Hammervoll,<br />

2010). Dalgic (2006) also comments on the <strong>in</strong>ternational aspect <strong>of</strong> niche market<strong>in</strong>g. No longer conf<strong>in</strong>ed with<strong>in</strong> national boundaries,<br />

it is an opportunity for companies to develop their <strong>in</strong>ternal strategic capabilities. A niche market strategy has the potential to help a<br />

company identify its most pr<strong>of</strong>itable market segments and hold <strong>of</strong>f import competition (Parrish, Cassill and Oxenham, 2006).

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