A niche market [a] is the subset of the market that focuses on a specific product. The market niche defines the characteristics of the product designed to meet the specific needs of the market, as well as the price range, the quality of the production and the demography to which it is intended. It’s also a small market segment.
Not all products can be defined by their niche on the market. The niche market is highly specialized and aims to survive in the competition of numerous super companies. Even established companies create products for different niches; Hewlett-Packard has all-in-one printing, scanning and faxing machines for the home office niche, while at the same time having separate machines with one of these functions for large companies.[One]
Product suppliers and commercial companies are commonly referred to as major suppliers or niche market suppliers of narrow demographic data (colloquially reduced to providers of niche markets). As a measure to increase their financial profit margins, small capital providers usually opt for a niche market with narrow demographic data.
The quality of the final product (low or high) does not depend on the price elasticity of the demand, but on the specific needs to be met by the product and, in some cases, aspects of brand recognition (e.g. prestige, feasibility, savings, costs, environmental awareness or social status).
Unlike mass audiences representing a large number of people, a niche audience is a smaller and more influential audience. In the post-network era, television, technology and many industrial practices have changed, and niche audiences now have much greater control over what they see. In this context of increased spectator control, television networks and production companies are trying to discover ways to achieve benefits through new programming, new programs and trust in syndication. This “restricted diffusion” practice also allows advertisers to have a more direct audience for their messages.
With few exceptions, such as American Idol, the Super Bowl and the Olympics, it is not common for a large audience to watch one show at a time. Nevertheless, networks are aimed at particular demographics. Lifetime is for women and MTV is for young people. Sports channels such as STAR Sports, ESPN, STAR Cricket and Fox Sports point to the niche market of sports enthusiasts.