What is a market niche?

A market niche refers to a specific segment of a market that is targeted by a business. This concept allows businesses to focus on a narrowly defined group of potential customers who have distinct needs or preferences that are not fully addressed by the larger market. By catering to this specific segment, businesses can differentiate themselves from competitors, develop specialized products or services, and establish a strong brand presence within that niche.

Targeting a market niche usually involves in-depth research to understand the unique characteristics of this segment, including demographics, buying behaviors, and preferences. Successful businesses in a market niche often benefit from reduced competition and can command higher prices due to their specialized offerings.

The other options do not accurately characterize a market niche. For example, an advertising technique or a general segment with many competitors does not encapsulate the idea of targeting a specific, underserved part of the market. A broad category of consumer needs lacks the focus required to define a niche, which is fundamentally about catering to a particular group with distinct preferences.