Product and Customer Niches

Posted by Spighterman
Jun 20 2010

Wikipedia describes niche markets as:

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.

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.

What is often left out of niche conversations is the customer perspective.  Even people and customers fall into a niche.  Understanding your customer niche just as much as you understand which niche your product or service will fulfill is mission critical.  You wouldn’t create a mind blowing oil leak widget for the Academia space, for example.  Focusing on your customer and your product/service niche will net success because you will know for a fact that you are providing the right product/service to the correct demographic.  Expansion there-after is often expected at which time you can assess moving your product/service to other paradigms that might use it.

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