Identify at least three challenges when setting up a business:
• Identifying who your client base.
• Financially understand the cost associate with the business.
• Identifying a good location for your business.
All these challenges are used to identify your clients base and creates a challenge as it is difficult to know who really needs your services and who will continue to use your product. Financially, it is important to understand the cost associate with the business because cost is the key to a financially sound business. Identifying a good location for your business it is always a challenge, since having a business in a remote area could have devastating affects if is not placed in a high populated area.
Define what a “niche” product is. Give at least three examples of niche products.
A niche product is when a person has a specific appeal to marketing and/or selling a product.
Three examples of niche products can be eggs, lotion and crabs.
Now take crabs for an example. Crabs are a local product in the Maryland area, so fishermen go to the Chesapeake Bay to catch fresh crabs and then sell the crabs to local restaurants, stores, etc. Farmers also have a niche product by selling fresh and local products like eggs, vegetables and fruits to restaurants, groceries stores and to tourist.
Explain why a niche company might have an advantage in a market. Would price necessarily be an advantage? Explain why or why not.
Niche companies have an advantage in a market because it specializes in serving a local community. Price will definitely be an advantages because a niche company offers a locally and more available products.
Identify and explain three reasons why customers would pay more for exclusivity.
Customers would pay more for quality, freshness and availability.
Explain how a niche player “chips away” at a larger competitor’s base. Give three examples of retailers who have done this.
By offering a local and more... [continues]
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