The word ‘niche’ is defined as: “A special area of demand for a product or service”. ‘Marketing’ is defined as: “The opportunity to buy or sell”. If you put the two words together, niche marketing means buying or selling a product or service in an area of special demand. This is a product or service is being sold to the people who are most interested in that particular product or service and not to the world in general.
Niche marketing is attractive to sellers because their advertising budgets go further. It costs less to advertise to a specialized market than it does to advertise to a broader market.
Niche marketing should be designed to meet the unique needs of the targeted audience. Niche marketers must tailor their product to meet those unique needs. If, for example, you have designed a product to make poodle grooming easy for the untrained professional. People who own poodles will be the most interested in your product. Customers who own Blood Hounds or cats won’t be interested. If you have written an e-book that explains how to start and succeed at an online business, those who are looking for that information are your niche market.
Every product has a market niche. It is possible to products for different niches. For example, a computer printer company can have all-in-one machines for printing, scanning and faxing targeted for the home office niche. While at the same time having separate machines with one of these functions for businesses.
Niche marketing is an effective and cost efficient way to advertise and sell specific products or services to a specific audience.