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Niche Market

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 intended to impact.

Every single product that is on sale can be defined by its niche market. As of special note, the products aimed at a wide demographics audience, with the resulting low price (due to Price elasticity of demand), are said to belong to the Mainstream niche, in practice referred only as Mainstream or of high demand. Narrowed demographics though lead to elevated price because of the same principles.

In practice, product vendors and trade businesses are commonly referred as mainstream providers or narrow demographics niche market providers (colloquially shortened to just niche market providers). Small capital providers usually opt for a niche market with narrow demographics as a measure of increasing their gain margins.

Nevertheless, the final product quality (low or high) is not dependant on the price elasticity of demand though, it is more associated with the specific needs that the product is aimed at satisfy and in some cases with brand recognition which the vendor wants to be associated with (i.e Prestige, Practicability, Money saving, Expensiveness, Planet environment conscience, Power, etc)

Online niche marketing

An often used technique for affiliate marketers. By seeking out smaller segments of larger markets, referred to as niches, 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. A bigger niche is harder to market to as the expense of online advertisements increases according to the popularity of the keywords used on Adwords for example. Many niches are becoming saturated with marketers, increasing competition reduces the slice of the pie available to each according to classic "supply and demand" economic theory. The secret is to find smaller "undiscovered" but still profitable niches, usually by searching out the best keywords to target. These lower cost keywords are called "long tailed keywords", as in the long tail of secondary keyword phrases which usually follow the main keyword in popularity of number of searches conducted by internet users. Some are too obscure and may have very few or even no clicks per month, and therefore not much use to target.

The concept of niche marketing can be well understood by the following example:
a number of tv channels caters to the need of a particular niche.for example sports channels like STAR SPORTS, ESPN, STAR CRICKET,TENS SPORTS are focusing towards a niche of sports lovers.


Source: Wikipedia