Which statement best defines niche marketing?

Niche marketing is best defined as targeting a well-defined segment with a tailored strategy. This approach focuses on a specific audience whose needs are not being met by mainstream products. By honing in on a particular segment, businesses can develop specialized products or services that cater directly to the preferences and requirements of that audience. This ensures that marketing efforts are concentrated, often leading to a more effective engagement with the target market.

In contrast, offering the same product to a wide market refers to mass marketing strategies that aim to reach as many consumers as possible without focusing on specific segments. Creating generic products for mass distribution involves developing items that appeal to the broadest audience, which does not align with the specificity of niche marketing. Competing primarily on price rather than product features suggests a focus on cost leadership, which may not address unique customer needs or preferences highlighted in niche markets. Therefore, option B accurately captures the essence of niche marketing by emphasizing the importance of understanding and serving a specific demographic with a customized approach.