Subject areaRevenue and sales
Also known asniche marketniche
A market niche is a narrow segment of customers with specific needs, which large players serve little or badly.
Demand is small but uniform: whoever serves it knows the problem well, speaks a targeted language and meets few competitors.
The advantage is the difference the customer recognises: in a niche it is easier to charge a price that pays for expertise, and loyalty grows because alternatives are few. The limit is size, which requires measuring carefully how much that segment is really worth.
Digital has changed the sums. The long tail theory explains that in the digital environment niches can become economically significant, because showing them costs little; in search engines emerging niches show up in low-competition keywords, and niche social channels also allow you to speak to a more cohesive audience.
An example
The case that follows is constructed, because the term does not yet appear in the articles. A company that makes sensors for chemical plants gives up generic customers and serves only the plants that handle corrosive fluids at high temperature. Few buyers, but with the same problem: the message is targeted, competitors are few and the customer agrees to pay for expertise.
Enrico Giubertoni. Licensed under CC BY-NC 4.0: you may quote, translate and adapt this entry with the author’s name and a link, stating any changes. For commercial use, write to info@enricogiubertoni.com
Spotted an inaccuracy or something that needs updating? Write to info@enricogiubertoni.com and help make this glossary a better place.
What are your business challenges?
Tell us about your priorities and the objectives you want to reach.
You will receive a free, targeted answer within one working day.