ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is a Niche Marketing Strategy? Designed to attract a specific subset of customers, a niche marketing strategy considers the narrow category into which your business falls. It focuses on a small group of buyers, instead of the broader market.

Detailed explanation-2: -Penetration pricing A penetration pricing strategy is the opposite of price skimming. Instead of starting with high prices, you start with low prices and gradually increase them as they gain traction.

Detailed explanation-3: -In the simplest sense, niche marketing is a specific portion of the market’s demographics and target audience. For example, in the marketplace of shoes, there can be different segments attached to the same. For example, shoes for casual wear, shoes for the office, shoes for women, shoes for men, or shoes for parties.

Detailed explanation-4: -Pricing high while accepting there will be a low volume of sales but at a high profit margin-This strategy is often used for luxury products or products with a good USP. For example, the manufacturers of luxury cars use this method to price their products as they have strong enough brands to set high prices.