A niche market is a very specific group of consumers or customers. The people who are part of it share a similar profile, characteristics and interests.
There are market niches that are broader (for example, musical instruments) and others that are more specific (following the previous example, guitars).
The niche defines your buyer persona, but it also helps you explore new markets, allowing you to find opportunities and target those demands that have not yet been met.
Answer the following questions:
Why do you want to work with the market you have in mind?
Do you know 100% of the problem that your business seeks to solve for your clients?
What tools do you have to solve this problem?
What interests do people have phone library with this unresolved problem?
What are your pain points ?
Are there other companies that focus on solving that demand?
If so, how can you differentiate yourself from your competitors?
If not, would anyone pay for a solution to that problem or demand?
Difference between market segment and niche
Before we start talking about the differences, let's start with what unites them. A niche market cannot exist without a segment. Why? Because a niche market is a small part of a segment.
A market segment is a much broader group of consumers. This is compared to a market niche , which focuses more on groups that have not been explored as much or are little known.
Let's take an example. A market segment could be customers looking for a gourmet burger joint. A niche market is those customers looking for those burgers to be vegetarian.
Characteristics of market niches
Market niches are different, but they have common characteristics. If you know them, it will probably be easier for you to find the niche you want to target.
A first point to keep in mind is that people who are part of a niche market are those who are most likely to buy your product or service. That is, they are willing to pay what is necessary to satisfy their demand.
These people know that it can be complex to resolve their demand, so they appreciate it when they find a business that does it. This means that they are committed and maintain a strong relationship with the business that provides them with what they need.
Another feature to consider is that there are not many companies that satisfy the needs of a niche market . That is, there should not be much competition. In fact, sometimes only one company solves that need.
This has to do with another characteristic: the products offered have very specific specifications.
You have to consider this when putting together marketing campaigns for your niche market , since these usually have more and better responses than one in which the target is a broader segment.
One more thing before we move on. In case you're wondering: even if there aren't many people in a niche market , they can be enough to ensure your profitability.
Extra tip → Check out our guide on profitable businesses and get your brand off to a good start.