Business – 3.1 The nature of marketing – Mass and niche marketing | e-Consult
3.1 The nature of marketing – Mass and niche marketing (1 questions)
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Model Answer:
- Advantages
- Reduced competition: Niche markets are often less crowded, allowing the firm to establish a strong position with fewer rivals.
- Higher profit margins: Specialized products can be priced at a premium because customers value the tailored solution.
- Potential Disadvantage
The limited size of the niche restricts total sales volume, making the business vulnerable to market fluctuations and reducing the potential for rapid growth.