Niche Products

Niche Market

Niche Market Jonathan Poland

A niche market is a small and specialized target market that is characterized by unique needs, preferences, and perceptions. These markets are often served by small firms that focus on providing products and services that cater to the specific needs of the market. By serving niche markets, these firms are able to avoid direct competition with larger and more established firms.

Large firms may also choose to diversify their product lines into smaller and more specialized niches in order to tap into new sources of revenue. This can be an effective strategy for firms looking to expand their operations and grow their customer base. Niche markets play a crucial role in the economy, providing opportunities for small businesses to thrive and for larger firms to diversify and expand their operations.

A niche product is a specialized product that is designed to appeal to a small and specific target market. This type of product is typically developed to meet the unique needs, preferences, and perceptions of a particular group of consumers. By targeting a niche market, a company is able to differentiate its products and avoid direct competition with larger and more established firms. This can be an effective strategy for small businesses looking to gain a foothold in the market and build a loyal customer base.

Niche products can also be a useful way for larger companies to diversify their product lines and tap into new sources of revenue. By offering specialized products, these firms can appeal to a broader range of consumers and expand their customer base. Overall, niche products play an important role in the economy by providing specialized products and services that meet the unique needs of specific consumer groups. The following are common types of market niche.

Customer Needs
The things that a customer needs to accomplish with a product or service. For example, a customer who needs ice skates specifically designed for freestyle moves.

  • Comfort
  • Configurability
  • Convenience
  • Fair Terms
  • Features
  • Functions
  • Information
  • Look & Feel
  • Performance
  • Repairability
  • Requirements
  • Use Cases

Customer Experience
The end-to-end experience of interacting with your brand, products and services. For example, a customer purchasing a crystal glassware product who finds it difficult to determine if it contains lead. This represents an opportunity for a niche competitor that bases their entire brand around being lead-free.

  • Brand Image
  • Customer Service
  • Inquiries
  • Peak Experiences
  • Problems
  • Product Information
  • Returns
  • Shopping Experience
  • Unboxing
  • Usability

Price
Targeting customers by their price sensitivity in a product category. For example, a parent who needs an entry level pair of ski goggles for a child. The parent isn’t overly price sensitive but wants a quality item at a value price without any concern for brand image.

  • Affordable Luxury
  • Discount
  • Luxury
  • Mid-Priced
  • Premium
  • Value For Quality

Quality
Offering the market a unique level of quality. For example, packaging a product in a wooden box that is usually packaged in plastic.

  • Build Quality
  • Defects
  • Durability
  • Fit for Purpose
  • Hand-made
  • Ingredient Quality
  • Materials
  • Packaging Quality
  • Reliability
  • Reusability

Demographics
Products that serve a particular demographic such as a smart phone app for seniors.

  • Age
  • Culture
  • Disabilities
  • Education Level
  • Ethnicity
  • Family
  • Gender
  • Generation
  • Income
  • Life Stage
  • Profession
  • Urban / Rural

Psychographics
A target market based on the way customers think. For example, a bicycle helmet for customers who prioritize health & safety that greatly exceeds safety standards.

  • Conservation
  • Customer Motivation
  • Environmental Consciousness
  • Health & Safety
  • Influences
  • Opinions
  • Risk Taking
  • Social Consciousness
  • Social Status
  • Traditional
  • Values
  • Worldview
  • Customer

Behavior
Customer behavior such as their shopping habits, brand loyalty and hobbies. For example, a desk chair for heavy users such as employees who work from home such that they need durability, comfort and safety at a reasonably price.

  • Activities
  • Brand Loyalty
  • DIY
  • Early Adopter
  • Experts
  • Hobbies
  • Interests
  • Late Adopter
  • Lifestyle
  • Novices
  • Shopping Habits

Geographic
Niches based on locations such as the only hotel directly connected to an airport or only Japanese restaurant in a small town.

  • Captive Customers
  • Convenience
  • Gift Shops
  • Local Monopoly

Events & Occasions
Products and services that relate to a point in time such as a birthday or industry conference.

  • Awards & Recognition
  • Celebration
  • Concerts
  • Conferences
  • Cultural Events
  • Festivals
  • Holidays
  • Life Milestones
  • Rites of Passage
  • Sports Events

Learn More…

Digital Media Jonathan Poland

Digital Media

Digital media refers to any media that is created, stored, and distributed…

Relationship marketing Jonathan Poland

Relationship marketing

Relationship marketing is a type of marketing that focuses on building long-term,…

Digital Goods Jonathan Poland

Digital Goods

Digital goods are products that are delivered and consumed in digital form,…

Business Transformation Jonathan Poland

Business Transformation

Business transformation is the process of fundamentally changing the way an organization…

Time to Volume Jonathan Poland

Time to Volume

Time to volume is a marketing metric that measures the time it takes for a new product to go from concept to launch and reach a significant level of sales or usage.

Taxation Risk Jonathan Poland

Taxation Risk

Taxation risks refer to the potential for a business to face financial…

Brand Status Jonathan Poland

Brand Status

Brand status refers to the social standing that is associated with a…

Turnaround Strategies Jonathan Poland

Turnaround Strategies

A turnaround strategy is a plan to rescue an organization, department, or…

Competitive Markets Jonathan Poland

Competitive Markets

In a competitive market, multiple participants exchange value without any single entity…

Jonathan Poland © 2023

Search the Database

Over 1,000 posts on topics ranging from strategy to operations, innovation to finance, technology to risk and much more…

Integration Risk Jonathan Poland

Integration Risk

Integration risk is a type of risk that arises when two or…

What is Reliability? Jonathan Poland

What is Reliability?

Reliability is a measure of the ability of a product or service…

Design Strategy Jonathan Poland

Design Strategy

A design strategy is a high-level plan that guides the overall approach…

Variable Pricing Jonathan Poland

Variable Pricing

Variable pricing is a pricing strategy in which prices are set based…

Benchmarking Jonathan Poland

Benchmarking

Benchmarking is the process of comparing the performance of a business, product,…

Knowledge Capital Jonathan Poland

Knowledge Capital

Knowledge capital refers to the resources and capabilities that enable a nation,…

Customer is Always Right Jonathan Poland

Customer is Always Right

The principle that “the customer is always right” is a widely used…

Quality Management Jonathan Poland

Quality Management

Quality management is a process that ensures products and services meet certain…

Managed Services Jonathan Poland

Managed Services

Managed services refer to a range of IT and business services that…