A niche market is the subset of the market on which a product is appealed to a small group of consumers. The market niche defines the product features aimed at satisfying specific market needs, as well as the

price A price is the (usually not negative) quantity of payment or compensation expected, required, or given by one party to another in return for goods or services. In some situations, especially when the product is a service rather than a ph ...

range, production quality and the

demographics Demography () is the statistical study of human populations: their size, composition (e.g., ethnic group, age), and how they change through the interplay of fertility (births), mortality (deaths), and migration. Demographic analysis examin ...

that it is intended to target. It is also a small market segment. Sometimes, a product or service can be entirely designed to satisfy a niche market. Not every product can be defined by its market niche. The niche market is highly specialized, and aiming to survive among the competition from numerous super companies. Even established companies create products for different niches;

Hewlett-Packard The Hewlett-Packard Company, commonly shortened to Hewlett-Packard ( ) or HP, was an American multinational information technology company. It was founded by Bill Hewlett and David Packard in 1939 in a one-car garage in Palo Alto, California ...

has 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 big businesses. In practice, product

vendor In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these term ...

s and

trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. Traders generally negotiate through a medium of cr ...

business Business is the practice of making one's living or making money by producing or Trade, buying and selling Product (business), products (such as goods and Service (economics), services). It is also "any activity or enterprise entered into for ...

es are commonly referred to 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 financial gain margins. The final product quality (low or high) is not dependent on the price elasticity of demand, but the specific needs that the product is aimed to satisfy and, in some cases, aspects of

brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's goods or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and ...

recognition (e.g. prestige, practicability, money saving, expensiveness, environmental conscience, or social status). When there are needs or desires with specific and even complex characteristics, the market niche requires specialized suppliers which are capable of meeting such expectations.

Niche audience

Unlike mass audiences, which represent a large number of people, a niche audience is an influential smaller audience. In television, technology and many industrial practices changed with the post-network era, niche audiences are now in much greater control of what they watch. In this context of greater viewer control,

television network A television broadcaster or television network is a telecommunications network for the distribution of television show, television content, where a central operation provides programming to many television stations, pay television providers or ...

s and production companies are trying to discover ways to profit through new scheduling, new shows, and relying on syndication. This practice of "narrowcasting" also allows advertisers to have a more direct audience for their messages. With few exceptions, such as ''

American Idol ''American Idol'' is an American Music competition, singing competition television series created by Simon Fuller, produced by Fremantle (company), Fremantle North America and 19 Entertainment, and distributed by Fremantle North America. It a ...

'', the

Super Bowl The Super Bowl is the annual History of the NFL championship, league championship game of the National Football League (NFL) of the United States. It has served as the final game of every NFL season since 1966 NFL season, 1966 (with the excep ...

and the Olympics, it is not common for a substantial audience to watch a program at once. Still, networks do target particular demographics. Lifetime targets women and MTV targets youth. Sports channels, for example, STAR Sports,

ESPN ESPN (an initialism of their original name, which was the Entertainment and Sports Programming Network) is an American international basic cable sports channel owned by the Walt Disney Company (80% and operational control) and Hearst Commu ...

, ESPN 2,

ESPNU ESPNU is an American multinational digital cable and satellite sports television channel owned by ESPN Inc., a joint venture between the Walt Disney Company (which owns a controlling 80% stake) and Hearst Communications (which owns the remain ...

, STAR Cricket, FS1, FS2 and

CBS Sports Network CBS Sports Network (a.k.a. CBSSN) is an American digital cable and satellite television network owned by the CBS Entertainment Group unit of Paramount Global. When it launched in 2002 as the National College Sports Network (later College Sports ...

, target the niche market of sports enthusiasts.

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References

{{Authority control Market segmentation

Niche audience

See also

Notes

References