Definition of niche marketing

marketing strategy whereby marketers devote 100% of their efforts toward a small segment of a market instead of the whole market. Niche marketing generally appeals to smaller companies with limited resources. Typically, the small market segment, or niche, has been overlooked or only casually served by other larger competitors but is still large enough to be profitable. There are several different niche marketing strategies: end user strategy, serving only one type of end user customer; vertical level strategy, specializing in one level of the production-distribution cycle; customer size strategy, selling products designed for only one size customer, such as petite or extra large clothes; service strategy, offering a service not available from any other company; and geographic strategy, selling only in one geographic area.