What does niche marketing focus on?

Niche marketing specifically targets a distinct and defined segment of the market, identifying unique needs and preferences within that group. This approach allows businesses to tailor their products and marketing strategies to cater to the specific interests and demands of this subset.

In the context of the insurance industry, niche marketing enables insurers to address particular types of coverage, risks, or customer profiles that may not be adequately served by broader market strategies. For instance, a company might focus on specialty insurance for vintage automobiles or unique liability needs for a specific professional group. By concentrating efforts on these specific subsets, businesses can create more personalized and effective offerings, leading to higher customer satisfaction and loyalty.

The other options do not align with the principles of niche marketing. Broad market strategies aim to attract a wide audience, which is contrary to focusing on specific niches. General insurance practices encompass a wide range of insurance products and services without the specificity that niche marketing entails. High-capacity risks refer to larger or more complex risks but do not inherently connect to the concept of niche marketing, which can apply to both small-scale and large-scale risks based on defined market segments.