A niche market is the subset of the market on which a specific product is focused. The market niche defines as the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact. It is also a small market segment. For example, sports channels like STAR Sports, ESPN, STAR Cricket, and Fox Sports target a niche of sports enthusiasts.
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, for example, Hewlett-Packard 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 vendors and trade businesses are commonly referred 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 recognition (e.g. prestige, practicability, money saving, expensiveness, environmental conscience, or social status).
Niche audience
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Technology and many industrial practices changed with the post-network era. There is a new drive for niche audiences because audiences are now in much greater control of what they watch. It is very rare to have a substantial audience watch a program at once, with few exceptions such as American Idol, the Super Bowl and the Olympics. Still, networks do target particular demographics. For example, Lifetime targets women and MTV targets youth. In this context of greater viewer control, networks 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.
See also
- Demographic profile
- Market segmentation
- Mass marketing
- Precision marketing
- Psychographic
- Target market
References
- Lotz, Amanda D. (2007) The Television Will Be Revolutionized. New York, NY: New York University Press. Ch. 3
