In very simple terms, niche marketing is precisely what its name suggests; this is when companies market their services or products to a group of "breeds". They promote a business to a certain group, this group (or niche) would be more likely to buy the products the business is promoting. This is both beneficial for the buyer and seller where the business is selling directly to the seller without any third party and thus avoiding wasting effort on other people that are clearly not interested in the product.A clear example would be a clothing company which makes clothes for adults, the business/company would initially target their marketing to any or all adults. If later, they introduced a brand new line of baby clothing, the group they marketed products for will be different: they would need to aim their efforts and promotions to the actual niche, which would probably end up being largely new parents to buy infants clothes in this case. This would have an effect on how they would choose and differentiate their audience. For example, they might focus more on the practical side of clothing instead of fashion, which they may be prone to target with adult clothing.
