Niche market
Encyclopedia
A niche market is the subset of the market on which a specific product is focusing; 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. It is also a small market segment and an example would be a bridal shoe shop because there is not very many of them around.
Every single product that is on sale can be defined by its niche market. As of special note, the products aimed at a wide demographic audience, with the resulting low price (due to price elasticity of demand
), are said to belong to the mainstream niche—in practice referred to only as mainstream or of high demand
. Narrower demographics lead to elevated prices due to the same principle. So to speak, the Niche Market is the highly specialized market that tries to survive among the competition from numerous super companies.
In practice, product
vendors and trade
business
es 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 dependent on the price elasticity of demand; it is associated more with the specific needs that the product is aimed at satisfy and in some cases with brand
recognition with which the vendor wants to be associated (e.g., prestige, practicability, money saving, expensiveness, planet environment conscience, power, &c.).
", "Superbowl" and the Olympics. They specifically target a demographic. For example, Lifetime
targets women and MTV
targets youth. Today networks and production companies are trying to discover ways to profit greatly by trying new scheduling, new shows, and relying on syndication so television prospers through this new era where the viewer is in absolute control.
marketers is Internet-based niche 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).
Some niches may become saturated with marketers, increasing competition and thus, according to the economic law of supply and demand, reducing the slice of the pie available to each competitor. One solution 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 that 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 television channels cater to the need of a particular niche; for example, sports channels like STAR Sports
, ESPN
, STAR Cricket
, and Fox
target a niche of sports lovers.
Many business industries use niche marketing today. The use of High Impact eMarketing styles along with the Microsite
or Landing Page
builds company recognition and brand trust.
Price
-Definition:In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services.In modern economies, prices are generally expressed in units of some form of currency...
range, production quality and the demographics
Demographics
Demographics are the most recent statistical characteristics of a population. These types of data are used widely in sociology , public policy, and marketing. Commonly examined demographics include gender, race, age, disabilities, mobility, home ownership, employment status, and even location...
that is intended to impact. It is also a small market segment and an example would be a bridal shoe shop because there is not very many of them around.
Every single product that is on sale can be defined by its niche market. As of special note, the products aimed at a wide demographic audience, with the resulting low price (due to price elasticity of demand
Price elasticity of demand
Price elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price...
), are said to belong to the mainstream niche—in practice referred to only as mainstream or of high demand
Supply and demand
Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers , resulting in an...
. Narrower demographics lead to elevated prices due to the same principle. So to speak, the Niche Market is the highly specialized market that tries to survive among the competition from numerous super companies.
In practice, product
Product (business)
In general, the 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 prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...
vendors and trade
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
es are commonly referred as mainstream providers or narrow demographics niche market providers (colloquially shortened to just niche market providers). Small capital
Capital (economics)
In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
providers usually opt for a niche market with narrow demographics as a measure of increasing their gain
Gain (finance)
In finance, gain is a profit or an increase in value of an investment such as a stock or bond. Gain is calculated by fair market value or the proceeds from the sale of the investment minus the sum of the purchase price and all costs associated with it...
margins.
Nevertheless, the final product quality (low or high) is not dependent on the price elasticity of demand; it is associated more with the specific needs that the product is aimed at satisfy and in some cases with brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
recognition with which the vendor wants to be associated (e.g., prestige, practicability, money saving, expensiveness, planet environment conscience, power, &c.).
Niche audience
Technology and industrial practices changed with the post-network era. There is a new drive for niche audiences because audiences are now in full control of what they watch. It is very rare to have a substantially large audience to watch at once, with the few exceptions of "American IdolAmerican Idol
American Idol, titled American Idol: The Search for a Superstar for the first season, is a reality television singing competition created by Simon Fuller and produced by FremantleMedia North America and 19 Entertainment...
", "Superbowl" and the Olympics. They specifically target a demographic. For example, Lifetime
Lifetime
Lifetime may refer to:*Life expectancy, the length of time a person is expected to remain alive*Mean lifetime, a certain number that characterizes the rate of reduction of a particle of an assembly...
targets women and MTV
MTV
MTV, formerly an initialism of Music Television, is an American network based in New York City that launched on August 1, 1981. The original purpose of the channel was to play music videos guided by on-air hosts known as VJs....
targets youth. Today networks and production companies are trying to discover ways to profit greatly by trying new scheduling, new shows, and relying on syndication so television prospers through this new era where the viewer is in absolute control.
Online niche marketing
An often used technique for affiliateAffiliate
An affiliate is a commercial entity with a relationship with a peer or a larger entity.- Corporate structure :A corporation may be referred to as an affiliate of another when it is related to it but not strictly controlled by it, as with a subsidiary relationship, or when it is desired to avoid...
marketers is Internet-based niche 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).
Some niches may become saturated with marketers, increasing competition and thus, according to the economic law of supply and demand, reducing the slice of the pie available to each competitor. One solution 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 that 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 television channels cater to the need of a particular niche; for example, sports channels like STAR Sports
STAR Sports
STAR Sports is a cable sports network owned by STAR TV and ESPN. It shows sports programs. In partnership with ESPN, its corporate name is ESPN STAR Sports. They are the official Asian station of the Barclays Premier League...
, ESPN
ESPN
Entertainment and Sports Programming Network, commonly known as ESPN, is an American global cable television network focusing on sports-related programming including live and pre-taped event telecasts, sports talk shows, and other original programming....
, STAR Cricket
STAR Cricket
Part of the ESPN-STAR network, STAR Cricket is a 24-hour cricket channel targeting Indian audiences owned by STAR TV. A channel showcasing first-class cricket action from around the globe, it broadcasts live and prerecorded international and regional cricket events as well as programming customised...
, and Fox
Fox Broadcasting Company
Fox Broadcasting Company, commonly referred to as Fox Network or simply Fox , is an American commercial broadcasting television network owned by Fox Entertainment Group, part of Rupert Murdoch's News Corporation. Launched on October 9, 1986, Fox was the highest-rated broadcast network in the...
target a niche of sports lovers.
Many business industries use niche marketing today. The use of High Impact eMarketing styles along with the Microsite
Microsite
A microsite is an Internet web design term referring to an individual web page or a small cluster of pages which are meant to function as a discreet entity within an existing website or to complement an offline activity...
or Landing Page
Landing page
In online marketing a landing page, sometimes known as a lead capture page, is a single web page that appears in response to clicking on an advertisement...
builds company recognition and brand trust.