Markets are Not Niches

From my own perspective, very few people that want to start Internet businesses really understand what a niche is.  Based on what I continually see in forums, blogs, and discussion groups, “niches” according to most newbies are really “markets.”

New prospective online business owners are told that they need to focus on a specific niche in order to sell information products online effectively.  Then they are given a list of niches and told to “pick one” and get started there.

Even the so called “gurus” confuse niches and markets all the time. Sometimes they use the terms interchangeably.

My intent with this post is to try to clear up the confusion you may have about what niches and markets really are … they are not the same thing.

A market or marketplace is a group of people with a common need, desire or problem.  They are looking for an opportunity to solve their problem or satisfy their desire in some way.  These people are in demand of a certain good or a service that will help them.

Here’s an example:  if you are one of the many people with a desire to purchase a new car, you are said to be “in the market” for a new car.  In the traditional economic sense – you are the “demand” side of the marketplace – you have a “demand” (a new car) and you will spend money with whomever you decide best meets your demand (the new car you choose).

On the “supply” side are all the car dealers and individuals that will help you meet your demand.  These are the people that have new cars and will gladly sell you one in exchange for your money.  This is simple supply and demand economics.

People move in and out of markets often – as soon as they have a need or desire met they are no longer considered a part of that marketplace unless they have other additional needs that are still as yet unfulfilled.

Niches are not markets. They are not typically subsets of markets either. Look the word “niche” up in the dictionary.  Here’s what mine says:

niche (noun or verb) 1. an ornamental recess in a wall or the like, usually semicircular in plan and arched, as for a statue or other decorative object. 2. a place or position suitable or appropriate for a person or thing; to find one’s niche in the business world.

A niche is a recess or place in a wall where a statue can be displayed (see image above). Or as definition #2 states, it’s a position for a person (or a business).

Said another way (with Internet marketing in mind) to make the mental picture more clear:  a niche is a place within a market that we choose to position our business to allow us to cater to the needs and wants of a specific group of people with a common desire or problem.

You do not pick a niche from a list of all the possible niches in a market. It is not something you “choose” in the same way you would pick a book to read at the library or a sandwich off the menu at a diner.  There are many niches left in every marketplace just waiting to be discovered or created.

You develop your own niche when you position your business in a way that allows you to respond to the expressed needs (demand) of a marketplace.

Until marketers understand that they create a niche by choice, they will limit their effectiveness because they will always be competing with other businesses as they try to sell the very same products and services.  Innovation is stifled if “known” niches are the only choice available.

I say, create your own niche. Position your business differently than all your competitors. When you do that effectively, you eliminate all the direct competition and comparisons!

By being different than all the competition, you will have a opportunity to attract prospects in the marketplace in a totally unique way.  You will be different, you will stand out, you will be able to give your customers and prospects something they won’t find anywhere else.

I hope this explanation makes some sense to you.

To your online business success,

Steve Browne

www.SteveBrowneDirect.com