What is niche marketing.
A niche market is a subset of the market for which a product or service is focusing. General market is too broad and very competitive and it is very difficult for a new comer to compete in. So the best option for a new comer is to select a suitable subset of the market where the competition is low and have a fare amount of traffic. So a new comer to internet marketing who wants to create an affiliate web site can develop the web site in a targeted niche and promote it across a targeted audience can gain an income through the site rather quickly. Let’s discuss this in more detail by taking an example.
There is a car manufacturer and it produces cars in general. Then it identifies there is a greater demand for “environment friendly cars”. Then it focuses on it and produces “environment friendly cars”. So it is a niche in the general cars market.
A niche market can be accessed through a “long tail keyword”. Normally these are neglected by giant companies and overlooked by the other internet marketers. For example, you never will be able to compete with Amazon for general book sales. But if you focus on a niche market using a long tail keyword such as “home improvement periodicals” there is a good possibility that you can overtake Amazon!
Some niches may become saturated with marketers: there is no room for a new comer to put his feet. What happens here is increasing competition reduces the slice of the pie available to each competitor. One solution is to find smaller, "undiscovered," but still profitable, niches, usually by searching the best keywords to target. Because some are so obscure as to have few or no clicks per month, the trick is to find the right ones to target.
Another point to keep in mind is that every niche you find with less competition and good traffic may not suit you to target. It is equally important that you have an interest on it and have a fare amount of knowledge on it. When the interest is not there you will no longer feel comfortable working on the site and there is every possibility that you will give it up. So make sure that the niche you select is something you have an interest and you don’t mind learning more about it.