What strategy involves responding to the wants and needs of niche markets with a mix of products, services, and advertising?

Target marketing is a strategy that focuses specifically on identifying and serving the unique needs and desires of particular segments within the broader market. By tailoring products, services, and advertising efforts to meet the specific preferences of a niche market, businesses are able to create more relevant and appealing offers. This approach allows companies to better engage with customers, leading to increased satisfaction and loyalty.

Through effective target marketing, businesses can analyze the characteristics of niche markets, such as demographics, purchasing behavior, and lifestyle choices. This understanding enables them to carefully select a mix of products and create targeted advertising campaigns that resonate with the identified consumer group. In doing so, companies can differentiate themselves in competitive marketplaces, position their brand effectively, and ultimately drive sales and profitability.

Market segmentation, brand positioning, and product differentiation are also important concepts in marketing, but they serve different purposes. While market segmentation involves the process of dividing the overall market into distinct groups, target marketing specifically addresses the unique needs of these segments. Brand positioning relates to how a brand is perceived in the minds of consumers relative to competitors, and product differentiation focuses on the distinct features that set a product apart from others. Thus, target marketing is the most fitting answer as it directly encompasses the strategy of responding to niche market demands.