Market Niches Flashcards
1
Q
Advantages of a niche market
A
1) it’s great for small firms who struggle to compete with large competition
2) the needs of those customers ignored by larger firms can be catered for
3) Firms can react quickly to changes in the market since fewer units are produced at a time
2
Q
Disadvantages of a niche market
A
1) there are fewer potential customers
2) profits must be generated from fewer sales - so prices will be higher
3) there is a danger that the niche might disappear or be targeted by bigger competitors
3
Q
What is a niche market
A
A niche market is a small segment of a large market
