What is Niche Marketing?

Niche marketing involves marketing the product to a selected segment. It is also called single segment strategy. It helps to the marketers, to select the specific segment mainly because either there is no competition or insignificant one.

A niche is segment within segment just as a segment in market within market. It has small market areas and generally attracts smaller companies. But now a day even large companies concentrating on these market for e. g. Johnson & Johnson consist of 170 units, most of which pursue Niche Market.

Niche marketer may face the problem of different brands entering into his share of business. This can be avoided by targeting multiple niches for e.g. multiple brands of Sunsilk shampoo. Market is divided in smaller niches. Being small size market the niche marketers knows the customer‘s personality and provides personalised services


1. Niche marker Faces Lesser Risk in marketing
2. It required limited investment
3. Ensures effective brand position
4. Higher profit
5. Marketer can get repeated purchases for his product and Limited competition.


1. It is not useful to large companies.
2. It is not advisable to concentrate on one niche because when competition became stiff then niche marketer may lose market.
3. It is short term marketing strategy and may not run in long term.
4. With competitive war fair niches are becoming smaller and smaller.


1. Market segmentation reveals that it is a customer oriented philosophy‖ Explain.
2. Enlist the points showing importance market segmentation.
3. Draw the diagram showing Bases of market segmentation.
4. Define the following terms:
a. Market segmentation
b. Niche marketing
c. Geographical market segmentation
d. Sociology-economic market segmentation
e. Behavioral market segmentation


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