The Entrepreneur'sRESOURCE

Explore the Resource Center to find resources.  Designed with entrepreneurs in mind, our resource center allows you to find materials to grow great ideas.

Developing Niched Markets

FastTrac, Kauffman Foundation

Although you may want to sell your product or service to the largest possible market, it isn't always the quickest path to growth and profitability. You will find difficulty marketing to a large number of potential customers. It takes greater resources of time, money, and people to sell to a larger audience than a smaller one. Many entrepreneurs have found it more cost-effective to focus on specialized or niche markets. Consider the following advantages and disadvantages:


  • Fewer competitors
  • Market may be underserved
  • Possible to charge a higher price
  • Customized offering
  • Easier to find those interested in niche products/services

  • Smaller target market
  • Turn away customers who don't fit niche
  • Marketing messages must be focused on niche prospects
  • Niche customers must have higher transactional value or be repeat buyers

If a travel agent wanted to focus on a niche market, she could focus on adventure travel for professionals, including cruises, safaris, and exotic destinations. Although this niche market is smaller and more specialized, her customers will generally go on two- or three-week vacations and spend more for customized arrangements.

© 2007 Ewing Marion Kauffman Foundation. All rights reserved.

comments powered by Disqus

Search for Resources

Stay Connected

Email Newsletter Signup

Want to get connected? Sign up to receive regular news, polls and updates from The Kauffman Foundation.

Email Newsletters

Want to be up-to-date with the latest news and updates from To subscribe, just give us your email address below; you'll choose which e-newsletters you'd like to receive on the next screen.