Niche firms and marketing strategy

Purpose This paper aims to explore how internationally oriented niche firms define and choose their markets and customers and how they position their products, and thereby add to the limited research knowledge regarding niche marketing. Design/methodology/approach The paper presents exploratory research based on structured in‐depth interviews of key informants in five firms. Findings Niche firms do not seem to follow the STP‐process. The selection of customers and markets is the result of tradition, chance or the firm's production philosophy, and the firms make few attempts to position their products. The firms rely on resource‐based advantages, high‐quality products and personal relationships when competing in the market. Research limitations/implications The selected methodology makes these results alone unfit for generalising to a larger population. Improved theoretical models are needed for generating more knowledge about niche firms and their efforts in crafting marketing strategies, possibly by extending relationship marketing theory. Practical implications A niche firm's marketing strategy should be based on a customer‐valued competitive advantage and differentiation should be applied in terms of both intangible and actual use criteria. Niche firms should strive for long‐term, personal relationships and customer commitment. Also, there seems to be some room for following one's own personal convictions and ideas when crafting a marketing strategy, even though this approach certainly is not in line with the structured marketing strategy process suggested in textbooks. Originality/value This study offers exploratory findings on how export‐oriented niche firms define and choose their markets and customers, and how they position their products. The standard STP‐process as proposed in general textbooks is not appropriate for international niche firms.