Niche

• What is niche marketing?

  Targeting a subsection of the market
• How does niche marketing focus on customer needs?

  By addressing specific needs within a segment
• What demographic factors might a business consider in niche marketing?

  Specific age, income, or lifestyle groups
• Why is niche marketing beneficial for small businesses?

  It allows them to compete with larger businesses
• What is product proliferation in the context of niche marketing?

  Offering niches within product ranges
• How does product proliferation benefit larger businesses?

  It combines mass marketing with niche offerings
• What is one advantage of niche marketing regarding customer satisfaction?

  It leads to higher levels of customer satisfaction
• How does brand loyalty affect pricing in niche markets?

  It may allow for higher prices and profit margins
• What is a disadvantage of niche marketing regarding market growth?

  Niche markets have limited growth opportunities
• Why is reliance on a specific niche a disadvantage?

  Trends may change, affecting the niche
• What is a consequence of not achieving economies of scale in niche marketing?

  Higher costs leading to pricing decisions
• What are two options a business has if it faces higher costs in niche marketing?

  Raise prices or lower profit margins
• What might happen if a niche market's trend dies?

  The business may struggle to survive
• What is a potential outcome of raising prices in niche marketing?

  It may lead to lower demand
• How does niche marketing help small businesses compete?

  By allowing tailored offerings to specific needs