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Outline and illustrate the term 'niche market'. - Leaving Cert Business - Question C - 2007
Question C
Outline and illustrate the term 'niche market'.
Worked Solution & Example Answer:Outline and illustrate the term 'niche market'. - Leaving Cert Business - Question C - 2007
Step 1
Outline the term 'niche market'
Answer
A niche market is a specialized segment of the market that is particularly well-suited for the marketing of specific types of products or services. It typically has a limited number of suppliers due to its specialized nature and the unique requirements of the consumers within that market. Niche markets are identified through market segmentation, which can include criteria such as socio-economic class, geographical area, and specific consumer preferences.
Niche markets are often more prevalent during times of economic prosperity, where consumers tend to seek specialized offerings tailored to their unique needs.
Step 2
Illustrate the term 'niche market'
Answer
To illustrate the concept of a niche market, consider the market for bridal shoes. This segment targets a specific group of consumers—those preparing for a wedding—and offers specialized products that meet their distinct needs. The bridal shoe market has limited suppliers due to the specialized nature of the product and the unique requirements brides may have, such as style, comfort, and fit.
Furthermore, this market can vary based on socio-economic class and geographical location, with different designs and price points available to cater to diverse consumer preferences.