What Is A Niche Market – Niche Market Definition
What is a niche market?
A niche market is specializing in one type of service or products in an area of the market. In every niche there are sub-niches. A sub-niche is one type of service within a niche.
Niche example: Health, wealth, relationship.
Sub-niche example: Wight loss in health niche, and how to improve your relationship within the relationship niche, etc.
Niche marketing advantages
- Niche market has less competition.
- It makes it possible to build your own brand loyalty.
- You will spend less in marketing and advertising one niche. Marketing to a niche audience can be highly targeted and therefore cost effective.
- Higher profit margin business, because when specializing in one niche you will be able to provide a better service, which will make the customers return even if they know that they’re paying a little extra on the price, as you will be seen as the expert in your field.
- Takes less work and less time to provide a good result.
Niche marketing disadvantages
- Limited growth because there is a small group of customers to buy the product or service.
- If the service or product you’re providing didn’t sell as you expected, you will have to start all over again with a different niche, especially if your domain and company names is related to the first product you started with.
- When you create a new service or products, it’s only a matter of time before a new competitor comes along. With a small audience the impact of a new competitor can have a much more dramatic effect than when the audience is bigger.
- Takes more work and time to provide good results.