As we continue on in this business building segment, I wanted to take a second to identify niche markets. Many companies and business strategies right now are focused on not necessarily catering to the masses, but specializing in a smaller subset of customers. These subsets are called niche markets.
A niche market is a focused and targeted portion of the total market. A company or a product category will address a need that is not recognized by the mainstream market. These ventures are generally profitable because of a lack of interest or specialty resources in large businesses.
The key to capitalizing on a niche market is to find or develop a niche that has customers who are accessible, that is growing fast enough, and that is not owned by one established vendor already.
Facebook has been in the headlines recently for opening up its registration to everyone. It may be beneficial to the networking site to do that for monetary reasons, but they will be diluting their brand. They are abandoning their ‘niche’ of college students in favor of broader consumer appeal.
A good example of targeting a niche is the specialty auction sites that are radiating through the internet. Ebay swallows up the whole, but what if someone wants a selection of previously owned golf clubs to choose from (this is just for example’s sake, I don’t do much golfing!)?
If nothing of that sort is available, then welcome to your niche!