Niche marketing focuses on a narrow, well-defined market segment rather than the mass market. It serves a specific audience with specialized needs that larger competitors often overlook.
Examples include vegan cosmetics, left-handed products, or gluten-free bakeries. Small businesses and startups find niche marketing particularly effective because competition is lower.
Advantages include less competition, higher customer loyalty, and the ability to charge premium prices. The key is finding a niche large enough to be profitable but specific enough to be defensible against larger competitors.