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Market Niche

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A market niche is a portion of a market segment, which is made up of a small group (either of people or companies) that has certain common characteristics and needs.

It's important not to confuse the concept of market niche with that of groups created through market segmentation. The latter tend to be larger and more complex when they are identified. An example to differentiate between niche and market segment is the case of a bakery, where the market segment would be people who consume bread and a niche market could be people who consume whole wheat bread.

Companies usually look for a specific niche market to which they can direct each of the products in which they work. Normally, market niches have characteristics that are considered as such. These are small and identifiable groups because of their customs or behaviors, which share similar needs and preferences and which don't yet have (or there are few) suppliers that provide them with the goods or services that satisfy them in any particular need.

Thanks to the operation through the search for market niches, it's possible to save time and resources, since they are oriented to the selected niche in question and it'll only be necessary to create a personalized sales plan instead of carrying out a large advertising campaign that Be massive and therefore expensive.

Not necessarily by going to a more select or small part of the market there will be lower revenues or sales. Many companies regularly obtain great results by working in this way and focusing their operation and production towards niche markets chosen in relation to their product.

Taking advantage of a niche market consisting of identified consumers and with select tastes can be a good way to obtain recognition and success for small, medium and large corporations. For this, the importance of specialization at the time of the production and development of its products would come into play.

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