1.1.1 Mass markets and Niche markets

Question 1

What is a Mass market?

Answer 1

•A mass market is where a business targets as much of the market as possible.
•Fast moving goods

Question 2

What is a niche market?

Answer 2

•A niche market is where the business targets specific customer needs/sells to a small segment of the market.

Question 3

What are the Characteristics of a Mass market?

Answer 3

•Low prices
•Extensive promotion
•Wide range
•High turnover

Question 4

Name three benefits of a Mass market

Answer 4

1) High customer base
2)Large quantities at low cost» Economies of scale
3)High sales»> High profit

Question 5

Name three disadvantages of a Mass market

Answer 5

1)Competitive
2)Threat from low cost competitors
3)Vulnerable to change in demand

Question 6

Name three benefits of a niche market.

Answer 6

1) Avoid competition
2)Charge higher prices
3)Focus on customer needs

Question 7

Name three disadvantages of a niche market

Answer 7

1)Limit growth/sales
2)Large company may enter gap in market
3)Little/No benefit from economies of scale