Final answer:
Niche markets are specialized market segments with fewer competitors, allowing businesses to focus on specific customer needs and preferences, often resulting in less competition and a stronger market presence. Thus, the option A is the correct answer.
Step-by-step explanation:
Niche markets are small segments of a market with fewer competitors than the market as a whole. Businesses that operate in a niche market cater to a specialized group of customers with distinct preferences or needs. Compared to mass markets, niche markets are focused and often involve more specialized products or services. The advantage of targeting a niche market is that there is generally less competition, allowing businesses to establish a strong presence and potentially charge higher prices. For example, vegan cosmetics would be considered a niche market within the broader cosmetics industry, catering specifically to consumers looking for animal-free products.