A niche is a specific, identifiable group of customers who have unique needs and preferences that are not shared by the broader market. Niches are often associated with small businesses that produce specialized products or services that appeal to a particular subset of the market. By focusing on a niche, businesses can differentiate themselves from larger competitors and target their marketing efforts more effectively to meet the needs of a specific group of customers. By understanding the needs and preferences of their niche audience, businesses can develop products and services that are tailored to meet the specific needs of this group, and build strong, long-term relationships with their customers.
A segment is a term that is often used by large firms to refer to a specific, identifiable group of customers who have unique needs and preferences. Segments are similar to niches in that they are both defined by a specific set of characteristics that distinguish them from the broader market. However, while niches are typically associated with small businesses that produce specialized products or services, segments are often used by large firms to refer to specific groups of customers within the larger market. Large firms may use the term “segment” rather than “niche” because the latter term may sound too small or specialized to be used by a large multinational company. Regardless of the terminology used, both niches and segments refer to identifiable groups of customers with unique characteristics and needs, and can be useful for businesses of all sizes in targeting their marketing efforts and developing products and services that meet the needs of specific groups.