Niche Marketing focuses on identifying small but profitable market segments and designs products for them.

• A. Targets the broad mass market.
• B. Identifies small but profitable market segments and designs products for them.
• C. Relies on mass advertising.
• D. Assumes all customers have identical needs.

Answer: (B)

Niche marketing centers on finding specific, smaller market segments that are profitable and then tailoring products to fit their unique needs. That exact idea is captured in this statement: it identifies small but profitable segments and designs products for them.

Why this is the best answer: it describes both the focus on a defined, limited audience and the customization of offerings to meet that audience’s particular requirements. It isn’t about reaching the broad population or treating all customers the same.

Why the other ideas don’t fit: targeting the broad mass market describes mass marketing, not niche marketing. Relying on mass advertising goes with broad reach rather than targeted segments. Assuming all customers have identical needs contradicts the whole premise of segmentation, which is that different groups have different preferences and requirements.