Niche market

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Niche market

A niche market is a focused targetable portion (subset) of a market.

By definition, then, a business

Business

A business is a legally recognized organization designed to provide good s and/or Service to consumers. Businesses are predominant in capitalism economies, most being privately owned and formed to earn profit that will increase the wealth of its owners....
that focuses on a niche market

Market

A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures whereby persons trade, and goods and services are exchanged, forming part of the economy....
is addressing a need for a product or service that is not being addressed by mainstream

Mainstream

Mainstream is, generally, the common current of thought of the majority. It is a term most often applied in the The Arts . This includes:* something that is available to the general public;...
providers. A niche market may be thought of as a narrowly defined group of potential customers.

A distinct niche market usually evolves when a potential demand

Supply and demand

...
for a product or service is not met by any supply, or when a new demand arises due to changes in society, technology, or the general environment.

Niche market ventures may become profitable even though they are by nature small in comparison to the mainstream marketplace, or monopoly, due to the benefits of specialization

Specialization

Specialisation, also spelt specialization, is an important way to generate propositional knowledge, by applying general knowledge, such as the theory of gravity, to specific instances, such as "when I release this apple, it will fall to the floor"....
and focus on small identifiable market segment

Market segment

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Encyclopedia

A niche market is a focused targetable portion (subset) of a market.

By definition, then, a business

Business

Market

Mainstream

Supply and demand

Specialization

Market segment

A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product and/or service needs....
s; even without the benefit of economy of scale. Niche markets may be ignored or discounted by large businesses due to what they consider to be small potential; this in turn is part of the process that makes the niche market available to smaller businesses. 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

Vendor (supply chain)

A vendor, or a supplier, is a supply chain management term meaning anyone who provides goods or services to a company. A vendor often manufactures inventoriable items, and sells those items to a customer....
already.

Etymology

The term "niche

Ecological niche

In ecology, a niche is a term describing the relational position of a species or population in its ecosystem to each other; e.g. a dolphin will be in another ecological niche to one that travels in a different school.....
" (pronounced nich, nesh, or nish) was first used by ecologists to describe a species

Species

In biology, a species is one of the basic units of biological classification and a taxonomic rank. A species is often defined as a group of organisms capable of interbreeding and producing fertile offspring....
' position and use of resources within its environment. When used in business

Business

Labour economics

Labour economics seeks to understand the functioning and dynamics of the market for labour . Labour markets function through the interaction of workers and employers....
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 working position

Employment

Employment is a contract between two party , one being the #Employer and the other being the #Employee. An employee may be defined as: "A person in the Service of another under any contract of hire, express or implied, oral contract or written, where the employer has the power or right to control and Management the employee i...
or an area

Skill

A skill is the learned capacity to carry out pre-determined results often with the minimum outlay of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills....
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 products

Product (business)

The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce from the Latin produce, lead or bring forth....
or services for them. For big companies those market segments are often too small in order to serve them profitably as these market segments often lack economies of scale

Economies of scale

Economies of scale, in microeconomics, are the cost advantages that a business obtains due to expansion. They are factors that cause a producer?s average cost per unit to fall as output rises....
. Niche marketers are often reliant on the loyalty business model

Loyalty business model

The loyalty business model is a business model used in strategic management in which company resources are employed so as to increase the loyalty of customers and other stakeholders in the expectation that corporate objectives will be met or surpassed....
to maintain a profitable volume of sales.

Online niche marketing

An often used technique for affiliate

Affiliate

An affiliate is a commerce entity with a relationship with a peer group or a larger entity....
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.