A niche is an identifiable group of customers who have unique needs and preferences. The term is typically associated with small companies who produce specialty products or services that strongly appeal to a subset of a market.A segment is a term that large firms use for niche. That is to say, niche and segment are arguably the same concept. Large firms tend to look at markets from the top down, focusing on goods that have wide appeal first and then moving to the large niches with time. The term "niche" sounds too small to be used by a large multinational firm, as such, the term "segment" is typically preferred by such companies.
|Niche Definition||A subset of customers who have unique needs and preferences for a particular product or service.|
|Segment Definition||A strategy employed by large firms to develop differentiated marketing approaches for subsets of a market with unique needs and preferences.|
|Related Concepts||NicheProduct StrategyPricing Strategy|
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