How to identify a Niche
A niche market is defined as a small segment of a larger market. It is when you focus on specific products or services that differentiate themselves from the rest of the broader market. You are intending to satisfy very specific needs or preferences by focusing on a small subset of the potential clientele of the market. The goal is therefore to target an audience that mainstream companies usually cannot reach easily as the cost would be prohibitive to develop a custom product for this small subset of customers.
Finding a niche can help a business create a competitive advantage as the company’s resources are focused on the development and provision of a specific product or service which builds brand awareness. Therefore, choosing a niche is a worthy strategic marketing decision that could provide a win-win situation for both the customers and the business itself.
Almost every aspect of a market can be divided into multiple segments according to the particular needs of the customers that take part. A niche can be identified based on various factors, such as the price range (from high to low), demographics (gender, age, income level, even education level), quality (premium, handmade, economical), psychographics (values, interests) and geographics (residents of a certain country or city).
