In business terms, what does 'niche marketing' refer to?

Niche marketing refers to the strategy of focusing on specific segments of the market with specialized products tailored to meet the unique needs and preferences of that group. This approach enables a business to differentiate itself from competitors by offering unique value, which can enhance customer loyalty and potentially lead to higher profit margins. By concentrating on a narrower audience, companies can become experts in that niche, allowing them to effectively address the particular challenges and desires of their target consumers, rather than trying to serve a broad market with one-size-fits-all solutions. This specialized focus often results in more effective marketing and a stronger brand identity within that segment.