The answer to most of your questions is ......."yes".
So... let's say you want to make... spark plugs.
Seems like a good idea. Maybe it is an easy item to sell. There are gazillions of cars on the road that need spark plugs.
But then you look a bit closer. And you discover that the specs for the spark plugs in different cars are often different. Hum..... what to do?
So you then see which cars share the same spark plug specifications. Your research shows that there are 10 major models from 2 major manufacturers that share specs. You then go further and research what part of the total automotive market share that those 10 models hold. You find out that it is 25% of that gazillion autos pool. Bingo.... likely very viable product.
More market research shows you what the sparkplug competition is charging for their sparkplugs. A cost analysis of you own operations tells you that you can produce the plugs for an amount that allows the business to "work". Even when slightly underselling the competition (price advantage). And you have an idea that produces something that the other sparkplug producers don't too (feature advantage). The unique feature of the sparkplugs you'll make gives a car a slightly better gas mileage (benefit advantage).
That analysis gives you a few thoughts on a potential marketing plan... you have three distinct avenues to pursue in selling the product. Good business.
Off you go to make those sparkplugs. And from your general viability research you know exactly where to market them as well.
Once that core endeavor is working, you can expand production into the second biggest market segment that you found for general sparkplugs. And so the business grows.
BUT.... now let's say that what you REALLY want to do is make sparkplugs for Ford Model T's. (Great analogy for handcrafted clay tablewares in this world.....particularly yunomi.) You have a passion for Ford Model T sparkplugs. They consume your every waking moment. Hum........ still sparkplugs... but a VERY different market.
The same kind of analysis has to happen. From that analysis you will find that the market is very small. Nothing like the first scenario. So you know that you will not sell a lot of units. So you know that the price per unit is going to have to be high to support the viable business.
But in your research you find that the people who own and drive these Model T's are FANATICS about their cars. And for the most part they are very affluent (have to be for this hobby). And they are willing to PAY for quality and such. You also find that they belong to things like antique auto clubsm subscribe to antique auto magazines, attend annual antique auto rallys, and so on. And you find that there are a small number of part suppliers that even are dedicated to sell to this small market.
Again... some business analysis takes place on production methods and costs... and you know what you have to charge per piece to make the business work. And you have already established whom you are going to sell to, you've established the "price sensiitivity" issue is not all that high, and you have found the core distribution network possibilities.
So you start attending those Model T conventions, you study the mechanics of the engines, you also go learn about cutting edge sparkplug technology (so that maybe you can add something the to original plugs that is better... but cannot be "seen" by the purists), and so on. You educate yourself to be an "expert" at Model T sparkplug design.You write some articles for those magazines. You lecture at some of those conventions.
In the process.... you meet a LOT of people who are tied into the serious Model T world. Like in any business endeavor... networking is THE most powerful tool there is. You've begun building your marketing base. And you have begin to build your credibility.
Off you go to make fewer sparkplugs than if you took the first possible sparkplug making route. And bnecause of your vast knowledge of the Model T culture, technical demands, and enthusiasts desires, you make KILLER Model T sparkplugs. In the end, you might just find that your overall gross income, your personal paycheck, and also your profits (if you dont understand the difference between thos three things..... take a class) are higher even though the total volume sold is WAY is lower.
This is all really "Business 101" stuff. Everyone who wants to work for themselves (including artists) likely should take at least one basic business class that covers stuff like production analysis, liability, insurance, accounting, taxes, marketing, employees, law, and so on.
PS: I've been studying Japanese ceramics, art, history, culture, language, martial arts, and so on since the late 60's. I'm a late career full time artist. So... I make and sell a lot of yunomi by now.