Marketing niche is a relatively new concept in the area of marketing. Niches are most profitable for smaller businesses that are specialized in a specific area of activity. Niche is focused on individuals, rather than big groups of people like in the case with mass marketing which aims at whole market. One of the most important factors for success in niches is the quality of the product. Businesses must produce quality products or services if they want to be successful in business. Reputation is key to success with this kind of marketing. Marketing niches must orient toward wealthier consumers that are ready to pay the high price for quality product. Local marketing is oriented towards the narrow area of activity, mostly close to the business location. Understanding of consumers is one of the most important factors in local marketing. There are many factors that we need to consider: the purchasing power of consumers, cultural norms, demographic situations and many other factors. It is very important to know what motivates local consumers. We can find out what motivates consumers by some of the following methods: focus groups, surveys, methods of observation and many others. Local marketing and especially niche marketing is a great chance for small businesses that have a hard time with big businesses. With the development of new technologies, this will become even more attractive to small businesses.