Theme 1 - Niche Marketing

Question 1

What is niche marketing

Answer 1

Niche marketing targets a specific segment of the market, focusing on unique customer needs instead of a broad audience.

Question 2

Advantages of niche marketing

Answer 2

• Less competition- focusing on specific segments often means fewer competitors
• Targeted messaging- marketing efforts can be tailored to fit specific needs and preferences
• Customer loyalty- building strong relationships with a specific group can lead to higher customer loyalty
• Higher profit margins- niche products can often command higher prices due to their unique characteristics

Question 3

Disadvantages of niche marketing

Answer 3

1. Small Market Size: You might not have many customers to sell to.
2. Risk of Changes: If the niche goes out of style, the business could struggle.
3. Dependence on Few Customers: If your few customers change their minds, it could hurt your sales.
4. Higher Marketing Costs: Targeting a specific group can sometimes cost more to advertise.
5. Too Much Competition: If too many businesses enter the same niche, it can get crowded and profits may drop.