1.1 Meeting customer needs Drawbacks of operating in a niche market Benefits of market orientation Benefit of market segmentation

1 2 3 Drawbacks of operating in a niche market Benefits of market orientation Benefit of market segmentation 1 Lack of economies of scale Risk of overdependence on a single product/ market Likely to attract competition if successful 2 Increased chance of product success as products are designed with customers needs and wants in mind May be able to charge a higher price 3 Reduces the opportunity cost of marketing as it can be targeted to specific market segments