Author Question: Describe the principle known as niche marketing. What are the competitive advantages of marketing to ... (Read 15 times)

wenmo · **on:** Jun 28, 2018

Describe the principle known as niche marketing. What are the competitive advantages of marketing to a niche?

Question 2

The basic purpose of marketing research is to help develop new products.
a. True
b. False
Indicate whether the statement is true or false

KKcool · **Reply #1 on:** Jun 28, 2018

Answer to Question 1

Niche marketing is based on the premise that smaller is often better when selecting target segments. By definition, large segments are usually established segments that many companies have identified and targeted previously. However, these large segments may be poorly defined. Niche marketing is the identification and serving of a relatively small group of consumers who have a unique set of needs. Typically, these consumers are willing to pay a premium price to the firm that specializes in meeting those needs. The small size of a market niche often means it would not be profitable for more than one organization to serve it. Thus, when a firm identifies and develops products for market niches, the threat of competitors developing imitative products to attack the niches is reduced.

Answer to Question 2

False