What best defines a niche market?

A niche market is best defined as a specific segment with unique needs. This concept refers to a subset of a larger market that is defined by its own distinct preferences, requirements, or characteristics. Businesses that target a niche market tailor their products, services, and marketing strategies to meet the particular demands of these consumers, which often allows them to build a loyal customer base and reduce competition.

For instance, a company that specializes in eco-friendly children's toys is catering to a niche market that not only values sustainability but may also have specific preferences regarding material safety and environmental impact. This level of specialization helps companies stand out and meet the needs of customers who have unique priorities, distinguishing them from broader market offerings that take a more generalized approach.

The other options represent concepts that do not accurately characterize a niche market; a broad group of customers or a demographic without preferences would indicate a more generalized market, while a focus on low-cost products pertains to pricing strategy rather than market segmentation.