Question

Some firms find it attractive to target "niches" because: Group of answer choices There are more potential customers in niches. Niches are typically larger and, therefore, attract more competitors. Firms can gain a competitive advantage by 'specializing' on serving the more narrowly defined needs of customers in niches. Customers in niches tend to possess more variation in wants, needs, and demographic characteristics making it that much easier to develop marketing programs that will fit the requirements of at least some customers in the niche. None of the above.

Answer 1

Firms can gain a competitive advantage by 'specializing' on serving the more narrowly defined needs of customers in niches.

Step-by-step explanation:

When it comes to marketing, a "niche market" has several advantages compared to other types of marketing. This type of tactic focuses on a "specific" target market. So, it tries to identify the unique needs of such population.

For example, there are varieties of beach resorts in the Philippines. However, not many offer jet skis to visitors. Those visitors who can only pay for the jet ski activity will become the specific target market of the company. So, this means that the company will be able to enjoy monopoly regarding this activity.

This gives it a "competitive advantage," by specializing on the jet ski activities, which is considered a narrowed down need of certain customers.

So, this explains the answer.