Briefly explain niche market in business studies

Answer 1

In business studies, a niche market refers to a specific segment of a larger market that caters to the unique needs, preferences, or characteristics of a particular group of consumers. Unlike the broader market, which targets a wide range of customers, a niche market focuses on a distinct subset of consumers with specialized interests, desires, or demographics. This targeted approach allows businesses to specialize in meeting the specific demands of this smaller customer base, often by providing specialized products, services, or marketing strategies. Niche markets are often characterized by higher profitability and customer loyalty, as businesses can develop strong relationships with customers by focusing on their specific needs.