In business terminology, what does the term 'niche' refer to?

The term 'niche' in business terminology refers specifically to a distinct segment of the market that caters to a particular group of customers. When defining it as "a specific place or position suitable for a person or thing," the focus is on the idea of specialization and the targeted nature of a business's efforts. In a niche market, a business can serve the unique needs of a small but well-defined group of consumers, differentiating itself from larger, more general markets. This specialized approach allows companies to tailor their products, marketing, and customer service specifically to their niche audience, potentially leading to a loyal customer base and reduced competition in that specific area.