Cambridge O Level Business Studies · Syllabus 7115 · Marketing
Niche Marketing
What is Niche Marketing?
A marketing approach that targets a small, clearly defined and specialised segment of a larger market, whose particular needs are not well served by mass-market products. It allows a close fit to customer requirements, less direct competition and often a premium price, but limits total sales volume and offers fewer economies of scale.
This definition is part of the Marketing chapter in Cambridge O Level Business Studies.
Common mistakes with Niche Marketing
- 5. "Niche marketing means a small business." Fix A niche is a small, specialised market segment. A very large business can serve a niche, and often does. Equally, mass marketing targets a broad market, not literally every consumer.
- "Niche marketing means the business is small." Correction A niche is a small, specialised market segment. Large firms operate in niches routinely. And mass marketing targets a broad market, not literally every consumer. What it costs The definition mark, plus every recommendation built on the wrong classification.
Questions students ask about Niche Marketing
Does niche marketing mean the business is small?
No. A niche is a small, specialised segment of a market, not a small business — a very large company can target a niche, and often does. Mass marketing aims at a broad market, but that does not mean literally every consumer. The size of the segment targeted and the size of the business are two separate things.