Long Tailed Theory Essay

682 Words3 Pages
The mass market traditionally focused on generating “hit” products that occupy the head and neglect the low-revenue niches markets comprising the tail. The niche customers have different needs especailly for those hard-to-find product and they willing pay a premium to a firm that best satisfies them. Therefore, the overlooked niches provide a potential growth and profitable market for company and is unlikely to attract many other competitors. Furthermore, technology is dramatically changing the the way we live and we do business. As a result of consumer’s embrace of the internet as a shopping media and the internet has directly contributed to the shifting of demand of products from hits to niches comprising the long tail. Many companies have even turned to niche marketing to tap the niche marketshare as well. The Long Tail describes the niche strategy, that sell a large number of unique items, each in relatively small quantities. There are three aspects of long tail that make the internet marketing success.  First, large variety of unique items attracts large volumn of minority tastes. The larger availability of choice, the greater the chance that will be able to tap potential demand for minority tastes  Second, internet business with the low distribution and inventory costs allows them to access the global market and earn significant profit out of selling small volumes of hard-to-find items to many customers. It also help to centralize the inventory in order to minimise the delivery cost directly from warehouse to the end-user.  Third, low cost for searching relevant products due to the wealth of information sources available online and therefore people can easily and quickly find what they want. Intermediaries such as ebay shows that there are sellers of any number of weird, wonderful and obscure items who find buyers

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