Difference between market segment and market niche…..
A market segment is usually considered to be a very broad area. For example, let’s say I produce LCD TV’s. I have just tapped into the Flat Screen Television Segment (some also include price in the segment, it’s pretty varied). Now, what if this LCD TV cost’s $10,000 and is made for animation companies. Then I have just tapped into a "niche" (i.e. a specialized area where it is possible to dominate). Tapping into Niches are important to some companies because here you can sell high margin products and sometimes have a monopoly over this small market. Small niches are also less volatile than an entire market segment.
14
Nov
Whats the difference between a market segment and a market niche?
Archived in the category: niche markets
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fx101
A market segment is usually considered to be a very broad area. For example, let’s say I produce LCD TV’s. I have just tapped into the Flat Screen Television Segment (some also include price in the segment, it’s pretty varied). Now, what if this LCD TV cost’s $10,000 and is made for animation companies. Then I have just tapped into a "niche" (i.e. a specialized area where it is possible to dominate). Tapping into Niches are important to some companies because here you can sell high margin products and sometimes have a monopoly over this small market. Small niches are also less volatile than an entire market segment.
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