Business School 101: Niche Markets

What is the origin of the term 'niche' in the context of niche markets?

• It is a modern term created by marketers.

• It comes from a Latin word meaning 'small group'.

• It is derived from a French word referring to a recess in a wall.

• It originates from a Greek word for 'unique'.

Which of the following is a feature of a niche market?

• Specific consumer needs

• Low customer loyalty

• General marketing strategies

• Broad customer base

What is a common characteristic of customers in a niche market?

• Preference for mass-market products

• Strong sense of loyalty

• High price sensitivity

• Low brand loyalty

Which company targets digital nomads with specialized products?

• Apple

• Divies

• Nomatic

• Glorious Gaming

Which company focuses on providing vegan baking goods?

• Nomatic

• Glorious Gaming

• Divies

• Nestle

What is a key strategy for entering a niche market?

• Focusing on mass production

• Avoiding competition analysis

• Creating detailed buyer personas

• Ignoring market trends

What is the first step in identifying a niche market?

• Develop a strategy for entry

• Analyze market competition

• Define target audience

• Evaluate profit potential

Why is understanding niche markets important for entrepreneurs?

• It reduces the need for market research.

• It guarantees immediate success.

• It eliminates competition.

• It helps in developing essential entrepreneurial skills.

How do niche markets contribute to risk management?

• By reducing product quality

• By focusing on specific customer needs

• By increasing market size

• By eliminating customer feedback

What is a benefit of operating in a niche market?

• Reduced customer loyalty

• Increased competition

• Higher barriers to entry

• Generalized marketing