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Business And Niche Products Three Essay

Advantages of a Niche Product Market and the Relevance of Price

The advantages of niche markets are several. First, they increase sales of products (such as ordinary clothing) for which the consumer may not have any need but the specific orientation of the product (such as MMA sports) generates a desire for the logo rather than the need for the product itself. Second, niche markets (such as that exploited by the PPM mouth guard) provides an opportunity to charge much more for products that may not be substantially different or better for their essential purpose (i.e. protecting teeth during sports) than much cheaper generic alternatives. Third, niche marketing such as imitating the features of expensive watches in cheap watches generates a market attributable to vanity and the desire to mimic the appearance of wealth and privilege. In some cases, niche markets (such as that for MMA clothing and high-end watches) allows the setting of a premium price; in other cases (such as cheap imitation watches), niche markets focus on sales volumes rather than the high unit price of the product.

Three Reasons Why Customers Value Exclusivity

Customers may value exclusivity because they associate it with high quality, such as in the case of high-end watches and the PPM mouth guard. Customers may also value exclusivity because it communicates privilege and connections, such as in the case of limited edition luxury motor vehicles with high-profile waiting periods. Customers may also value exclusivity simply because people sometimes enjoy being the first to have a new product or being a member of a coveted group, especially...

non-logo) clothing apparel as well as at other different sports logo attire such as licensed NFL apparel. Likewise, the mid-range fully-functional chronograph watches (Seiko, 2009) have chipped away at the high-end products that created the market in 1969 (Omega, 2009). Finally, the low-end non-functioning chronograph-appearing watches have chipped away at both the mid-range and high-end chronograph watches.
References

JCPenney. (2009). Armitron Men's All-Sport Watch. Retrieved November

09, 2009, from:

http://www4.jcpenney.com/jcp/X6.aspx?DeptID=56856&CatID=57655&GrpTyp=PRD&ItemID=1533e3c&attrtype=&attrvalue=&CMID=56856%7c57495%7c57655&Fltr=&Srt=price%3bPRC%3bTrue&QL=F&IND=82&cmVirtualCat=&CmCatId=56856|57495|57655

Makkar. (2009). The PPM Sports Performance Mouth guard. Retrieved November

09, 2009, from: http://www.makkaradvantage.com/what-is-ppm/

Omega. (2009). Fiftieth Anniversary Speedmaster Chronograph. Retrieved November

09, 2009, from: http://www.omega.ch/index.php?id=1025

Seiko. (2009). Seiko Sports Chronograph. Retrieved November

09, 2009, rom:http://www.seikowatches.com/products/sportura/chronograph.html

Tapout, LLC. (2009). Tapout Mixed Martial Arts Clothing Shop. Retrieved November

09, 2009, from: http://shop.tapout.com/

Sources used in this document:
References

JCPenney. (2009). Armitron Men's All-Sport Watch. Retrieved November

09, 2009, from:

http://www4.jcpenney.com/jcp/X6.aspx?DeptID=56856&CatID=57655&GrpTyp=PRD&ItemID=1533e3c&attrtype=&attrvalue=&CMID=56856%7c57495%7c57655&Fltr=&Srt=price%3bPRC%3bTrue&QL=F&IND=82&cmVirtualCat=&CmCatId=56856|57495|57655

Makkar. (2009). The PPM Sports Performance Mouth guard. Retrieved November
09, 2009, from: http://www.makkaradvantage.com/what-is-ppm/
09, 2009, from: http://www.omega.ch/index.php?id=1025
09, 2009, rom:http://www.seikowatches.com/products/sportura/chronograph.html
09, 2009, from: http://shop.tapout.com/
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