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Explain the term niche market and provide an example to support your answer - Leaving Cert Business - Question 8 - 2019
Question 8
Explain the term niche market and provide an example to support your answer. Example:
Worked Solution & Example Answer:Explain the term niche market and provide an example to support your answer - Leaving Cert Business - Question 8 - 2019
Step 1
Explain the term niche market
Answer
A niche market is a small specialized segment of a larger market tailored for a specific product or service. This type of market focuses on meeting the unique needs of a particular group of consumers, differentiating itself from broader markets that may have a wider variety of products and services.
Niche markets cater to consumers who have specific preferences or requirements that are not typically addressed by mainstream providers. By targeting a select audience, businesses can reduce competition and often enjoy higher profit margins. For instance, companies that produce eco-friendly products or tailor their services to wheelchair users are examples of how niche markets can operate within larger industries.
Step 2
Provide an example to support your answer
Answer
One example of a niche market is the production of wheelchair accessible vehicles. This specific market serves individuals with mobility impairments, providing them with vehicles tailored to their needs. By focusing exclusively on this demographic, manufacturers can create specialized features such as ramps and hand controls, setting themselves apart from conventional vehicle markets that do not cater to these specific requirements.