Why Niches Exist in the First Place
Whenever you here the phrase "you can't compete with the big guy," don't take in that false statement. The very nature of a business being big is what creates the possibility of a niche in the first place.
When you think of a big business, you have to think of words like mass, general 
and ubiquitous concerning the types of products or services they offer. In these areas the great majority of small businesses can't compete; at least most of the time. There are exceptions to the rule.
Now the reason that there are niche markets in the first place is because the very nature of serving masses of people demands that a product or service be generalized. In the case of retail stores, for example, the huge stores have to offer general merchandise that people require to use consistently, to be able to be successful.
The secret is that they can't come anywhere near to supplying what people with unique, specialized desires want or need. There wouldn't be a physical place big enough to provide it. If there was, people wouldn't go to it anyway; it would be the size of a city, or bigger; thus the opportunity for small businesses to serve that particular audience.
You competitors won't be big business, they'll be fellow marketers trying to better serve a niche market.
So the reason niches exist is because big business can't serve the continuing fragmented needs and desires of a smaller group of people. That's why there is so much opportunity for success running a smaller, targeted business.
Other Niche Marketing Resources:
Niche Marketing: Searching for a Profitable Niche
Niche Marketing: How to Define a Unique E-Business Niche
Niche Marketing vs Mass Marketing
Niche Marketing - How to Find Your Perfect Niche Market
Target Marketing Strategy – Find Your Own Niche Market
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Tracked on: June 14, 2008 10:26 PM | Permalink to Trackback