Niche or market segment? How to find your place in the business.

According to the definition American dictionary, niche – is nothing more than "a Situation or activity specially designed for someone's individual abilities and character." it's No secret that lately considered the most successful are the entrepreneurs who in time managed to find and infiltrate its own niche market. This question arises quite a bit of confusion: often confused with niche market segment, and the process of search – with the positioning of the product. Market segment – this is the basic concept of marketing, representing the group of consumers having similar consumer preferences. Market segmentation allows businesses to produce those goods which consumers need and will fully welcome. Selection criteria segment of the market is very diverse, but the principle is to maximize profits and find their own niche. Perhaps that is why today in marketing a completely new direction, representing the process of finding market niches (nishing), which includes a number of innovations on the part of product promotion and market research.

What's a niche and how it differs significantly from the market segment?

In our time for success in business and prosperity for your own business, it is important not just to determine exactly their market activity, but also to find the most narrow area (market segment or multiple segments), still not occupied by the competitors. Once in a niche, a completely new kind of business gains a special power and can for a very short period of time to become profitable and competitive production or enterprise. The only meaning of niche selection – to translate the game into their field or to attract to it as many potential buyers, and then to use all the advantages of the owner of this small but their own business. A niche market is a sphere of economic activity or type of business is limited in scale and with a limited number of potential customers.

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The characteristics of a niche market:

• Specially individualized needs and demands of consumers, to meet which requires a set of complementary products and services;
• Stable, but not a big potential market capacity;
• Strong Enough lessening of competition.

Immediately it should be noted that complete absence of competition is not to say that in front of you is a gold mine and just need to find the ways of its development. It may well be that other businesses have attempted to cover this part of the business, but he left her for is not full of prospects. As a rule, niche market occurs when one market segment is in contact with another, it can be as different segments of the markets. Here arises a very active demand, and changing needs and demands of the consumers happen so fast that you need a very high production flexibility for quick and timely manner. If the niche market occupied by firm, it is not of interest to other businessmen, because they are in this business have no place. The competition process becomes meaningless, because in this case, the financial cost will be much higher profits.

Providing a significant market segment or several segments, the entrepreneur can obtain high profits and be popular among buyers. However, only occupying a vacant niche can achieve great success and take your business to a whole new level, because it is based on the key tools of international marketing.