Question

Keepsake Collectibles focuses its marketing efforts on high-income buyers of unique collectible items. The firm realizes that the number of buyers in this segment of the collectible market is small. However, they are confident that this approach will be profitable since these buyers will pay premium prices for their unique products and superior customer service. Keepsake's approach is an example of:a. competitive benchmarking.
b. niche marketing.
c. relationship targeting.
d. target positioning.

Answer 1

Answer:

B) niche marketing.

Explanation:

Market niches are small segments of a larger market that possess unique needs and preferences, and they are willing to pay for products or services that satisfy them. E.g. vegan restaurants.

Market niches are usually served by very specialized products or services, and since differentiation costs money, their selling price is also high. Most luxury brands focus on market niches, and their success is based on differentiated service and brand status.