1.1 Mass and Niche Marketing Flashcards
Define “Market”
Any medium in which buyers and sellers interact and agree to trade at a price.
What is a local market?
Where customers are a short distance away from suppliers.
Common for fresh and locally-sourced products.
What is an example of a local market?
Local milk man, local takeaway, local businesses
What is a national market?
The same product or service is offered to customers who are spread around the country e.g in the UK
A start-up or small business can focus on a national market but they likely will have a very small market share.
What is an example of a national market?
Greggs, Wetherspoons, Homebase
What is a physical market?
A market that brings buyers and sellers together in the same location.
Prices can be negotiated
What is an example of a physical market?
Farmers market, market stall, auction, car boot sales.
What is an electronic market?
Transactions are completely electronic with the delivery method depending on he nature of the product sold.
What is an example of an electronic market?
Online retailers like amazon, Esty and eBay.
And company that don’t exclusively sell online like Asda Tesco and H+M
What are some characteristics of a mass market?
Low prices
A wide range of sales outlets and wide availability
Extensive promotion
High turnover
Standardised products
What are the benefits of mass marketing?
Greater number of customers in the market.
Businesses can produce large quantities at a lower unit cost but exploiting economies of scale.
Greater brand awareness as more people are talking about it and its in more locations.
What are the drawbacks of mass marketing?
Intense Competition
High set up costs
Standardised products
Vulnerable to changes in demand
What are economies of scale?
Reductions in average unit costs, enjoyed by a business as output increases.
What is niche marketing?
Where a firm focuses on a small segment of the market.
What is mass marketing?
Where a firm will try to accommodate as much of the market as possible.
