What Is Niche Marketing? Let me illustrate. Imagine that you live in New York city. One day, researchers discovered a gold mine at a certain location X right in the heart of New York. Everyone starts to go to location X and try to dig for gold. Only one problem though. They didn't have any spades to dig!

Coincidentally, you happen to run a DIY shop and you have up to 500 spades in stock. Not much, but then instead of charging $2, you can now charge up to $100 for each one. And everyone willingly pays for it because they want to dig for gold. This is niche marketing in action. Marketing the spades (niche product) to a select group of buyers (niche market).