Markets 2

Question 1

What is Niche Marketing?

Answer 1

Specialised market segment where you cater for demand for goods/services that aren’t already supplied for by main suppliers.
Specific market targets.

Question 2

Advantages of Niche Marketing?

Answer 2

-They can charge higher/premium prices
- Can avoid competition by selling to markets that have been overlooked.
- Promotion cost can be kept low as only need to reach specific audience.

Question 3

Disadvantage of Niche Marketing?

Answer 3

-Firms that are successful can attract competition
-Cannot benefit from Economies of Scale.
-Doesnt allow the spreading of risks.