Market segmentation Quiz

Niche marketing is an approach to marketing that aims to sell a good or service to a specific (focused) and narrow group of customers with very specific needs.

• True

• False

Above the line promotion is generally suitable for mass market products.

• True

• False

Mass market businesses can't tailor-make their marketing to appeal to customers, thereby avoiding wasting time and money on marketing activities that are not relevant to customers.

• True

• False

By focusing on a specific market segment, businesses that focus on niche markets cannot earn high profit margins.

• True

• False

It is more economical for businesses to use below the line (BTL) promotional strategies for niche market products.

• True

• False

Over time, a niche market product can become more mainstream so it becomes a mass market product.

• True

• False

Mass market products benefit from not having to have adapted marketing activities for different market segments.

• True

• False

In niche markets, the total number of customers is likely to be quite low.

• True

• False

Large multinational businesses often operate in niche markets.

• True

• False

By focusing on a small or narrow segment of the market, a niche market business is likely to attract the attention of larger, more established businesses.

• True

• False