Wiki-Pedia explains the niche market as follows: A niche market is the subset of the market on which a specific product is focusing. It needs specific product features aimed at satisfying specific market needs.
The Foundry Group which I interviewed last week specialized on Software and Internet Companies. Seth Levine said: “we know our stuff and we have a deeply belief we can figure out if things are working by the time we invest up to 10 Mio. $ in a new company”.
Another example for a well known niche market is the Sports Channel. It´s a niche market and it reaches millions of customers. Generelly, the word niche might “sound” small or we associate it with something rather irrelevant but opposite is what it offers! Every product must be defined by its market niche. You just have to define the audience which are all potential customers.
Baby-food and cat-food also are niche market products reaching millions of customers. I´ve heard that cat-food is more comprehensive than baby-food (!!). At the other end, a special sculpture or any kind of ART has a higher price due to being an absolute unique product and only 1 cutsomer will be THE paying customer.
If you choose your own product for entering the niche market of your choice you narrow the normal wide space of “everything is possible” down to what you are going to MAKE possible. You reduce your knowledge to your expertise “X” and then you start widen your expertise “X” on that field to reach many people.
Again: you reduce to widen! View it as a funnel effect to keep in mind.
How do you widen your space? EASY! Add education, network globally to get a lot of info, mix it with on-going experience and on top you put competing products in your field.
One thing about the niche product price: follow the rule that products aimed at a wide demographic audience get a resulting low price because they are mainstream products. You offer high demand products. On the other end, narrower demographics lead to elevated prices.
Keep the price elasticity in mind: “long” stretches and asks for a “low” price while a “short” field isn´t stretched of course and asks for a “high” price.
In case you tap into the trap and associate a niche market as a small market – forget it! It´s relevant to know your stuff as an expert, be competent and keep on educating, specialize on relevant and new info and conquer that market slowly but successfully!
BE A DECISION MAKER. BECOME OUTSTANDING.
rita jaskolla – Leadership Architect –