9 Examples of a Niche Market

John Spacey, May 07, 2020

A niche market is a relatively small target market that have unique needs, perceptions or preferences. It is common for small firms to serve niche markets in order to avoid directly competing with larger and/or stronger firms. It is also common for large firms to diversify product lines into smaller and smaller niches with time. 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

Overview: Niche Market
Type	Markets
Definition	A relatively small target market that have unique needs, perceptions or preferences.
Also Known As	Market Segmentation
Related Concepts	Markets » Target Market » Customer Preferences » Customer Needs » Customer Experience » Price Sensitivity »