Niche Market

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A niche market also known as a target market is a focused, targetable portion (subset) of a market sector.

By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. A niche market may be thought of as a narrowly defined group of potential customers.

A distinct niche market usually evolves out of a market niche, where potential supply and demand is not met by any supply.

Such ventures are profitable because of disinterest on the part of large businesses and/or lack of awareness on the part of other small companies. The key to capitalizing on a niche market is to find or develop a market niche that has customers who are accessible, that is growing fast enough, and that is not owned by one established vendor already.

Etymology The term ecological niche was first used by ecology to describe a species' position and use of resources within its environment. When used in business the term implies a situation or an Labour economics perfectly suited to a person or a given type of personality. This concept has been extended from persons to products on the market. Whereas a niche in the strict sense can be a employment or an skill suited to a person who occupies it, the market niche is perfectly suited for a product of human labour.

Marketing in and for niche markets Niche marketing is the process of finding and serving profitable market segments and designing custom-made product (business) or service for them. For big companies those market segments are often too small in order to serve them profitably as they often lack economies of scale. Niche marketers are often reliant on the loyalty business model to maintain a profitable volume of sales. this also means theres a gap in the market

Online Niche Marketing An often used technique for affiliate marketers. By seeking out smaller segments of larger markets, a website can be developed and promoted quickly to uniquely serve a targeted and usually loyal customer base, giving the affiliate a small but regular income stream. This technique is then repeated across several other niche websites until a desired income level is achieved.

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Niche market - Wikipedia, the free encyclopedia
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