A niche is a small market whose needs are not being well served by the
existing products. A niche may be identified by dividing a segment into
sub-segments or by defining a group with a different set of characteristics
who may look for a special combination of benefits of attributes in the
product. Some firms find it profitable to identify and serve the special
unmet needs of small market segments (niche). They can thus avoid direct
confrontation with the market leader by focusing on areas not targeted bythe leader. Using the niche strategy one assumes that people or
organizations within a product market will vary as to their responsiveness
to any marketing program. The objective is to identify two or more
subgroups within the product market so that the people or organizations
comprising each subgroup will response similarly to a marketing offer
designed to meet their particular needs. The following steps are involved
in selecting a niche are :
Step: 1- Decide how to form niches in the product market.
Step:2 - Describe the people/organizations in each niche.
Step:3 - Evaluate target market alternatives.
Step:4 - Select a target market strategy.
