Definition of a Niche

The dictionary defines a niche as follows:

1. wall recess: a recess in a wall, especially one made to hold a statue

2. hollow place: any recess or hollow, e.g. in a rock formation

3. suitable place for somebody: a position or activity that particularly suits somebody’s talents and personality or that somebody can make his or her own

She carved out her own niche in the industry.

4. commerce specialized market: an area of the market specializing in one type of product or service designed to undercut the competition in the same niche

5. ecology place in nature: the role of an organism within its natural environment that determines its relations with other organisms and ensures its survival

A niche market is the subset of the market on which a specific product is focusing on.

Therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intending to impact.

So a niche market is a focused, targetable portion of a market.

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.

You can think of a niche market as a narrowly defined group of potential customers.

Definition of a Niche: Example

For instance, instead of offering gymnastics services, a business might establish a niche market by specializing in “recreation gymnastics for children between age 4 and 9 years of age.”

You can see how this market niche is clearly definable (parents of children wanting recreational (not competitive) gymnastics for their children in the age category of 4-9 years.

Why should you bother to establish a niche market?

Because of the great advantage of being alone there; other small businesses may not be aware of your particular niche market, and large businesses won’t want to bother with it.

The trick 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.

Establishing a niche market gives you the opportunity to provide products and services to a group that other businesses have overlooked or are not specialised enough in.

Here are some more definitions related to definition of a niche:

Demographics – Socioeconomic groups, characterized by age, income, sex, education, occupation, etc., that comprise a market niche.

Market research – The collection and analysis of information about consumers, market niches, and the effectiveness of marketing programs. 

Definition of a Niche: Related Terms

concentrated marketing

differentiated marketing

micromarketing

niche marketing

If you want to be successful, get into the process of finding and serving small but potentially profitable market segments and designing or selling custom-made products or services for them using a mini site or blog!

For a comprehensive overview of Niche Marketing, read my Niche Business Ideas Article.

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Resources Contact me if you have questions or would like to know more about niche Marketing Visit www.PutYourMLMBizOnline.com for FULL TRAINING on setting up your MLM Biz Online and finding your perfect Niche Market.