Niche Marketing


Smaller businesses typically avoid competing with larger companies by targeting small markets of little or no interest to the larger firms. Niche Marketing is when a company focuses on a specific group of individuals to better serve them.

The nicher achieves high margins, whereas the mass marketer achieves high volume, hence why most businesses with low market share become highly profitable through smart niching. Other reasons for high profitability include nichers tending to offer high value, charging a premium price, and achieving low manufacturing and distribution costs.

Nichers have three major tasks:

  • Creating niches,
  • Expanding niches, and
  • Protecting niches

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