Aniche market is the subset of the market on which a product is appealed to a small group of consumers. The market niche defines the product features aimed at satisfying specific market needs, as well as theprice range, production quality and thedemographics that it is intended to target. It is also a smallmarket segment. Sometimes, a product or service can be entirely designed to satisfy a niche market.[1]
Not 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;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.[2]
In practice, productvendors andtradebusinesses are commonly referred to asmainstream providers ornarrow demographics niche market providers (colloquially shortened to justniche market providers). Smallcapital providers usually opt for a niche market with narrow demographics as a measure of increasing theirfinancial 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 ofbrand recognition (e.g. prestige, practicability, money saving, expensiveness, environmental conscience, or social status). When there are needs or desires with specific and even complex characteristics, the market niche requires specialized suppliers which are capable of meeting such expectations.
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Unlike mass audiences, which represent a large number of people, a niche audience is an influential smaller audience.[3] In television, technology and many industrial practices changed with thepost-network era, niche audiences are now in much greater control of what they watch. In this context of greater viewer control,television networks andproduction companies are trying to discover ways to profit through new scheduling, new shows, and relying onsyndication.[citation needed] This practice of "narrowcasting" also allows advertisers to have a more direct audience for their messages.[4]
With few exceptions, such asAmerican Idol, theSuper Bowl and theOlympics, it is not common for a substantial audience to watch a program at once. Still, networks do target particular demographics.Lifetime targets women andMTV targets youth. Sports channels, for example,STAR Sports,ESPN,ESPN 2,ESPNU,STAR Cricket,FS1,FS2 andCBS Sports Network, target the niche market of sports enthusiasts.[5][citation needed]
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