3 Niche & Mass marketing 20

Question 1

What is Mass marketing ?

Answer 1

An attempt to create products or services that have a universal appeal / rather than targeting a specific type of customer

Question 2

An example of mass marketing?

Answer 2

Coca-Cola, the company aims its product at young and old alike

Question 3

What is Niche marketing ?

Answer 3

Where a business targets a smaller segment of a larger market / an attempt to create products or services that target a specific type of customer that have different need and wants

Question 4

What are the advantages of targeting Niche?

Answer 4

Less competition 
Clear focus
Charge a higher price
Higher profit margins
Customers loyalty

Question 5

What are the disadvantages of targeting Niche?

Answer 5

Lack of economies
Over dependence on single product/market
Vunerable to market changes

Question 6

What is a Positioning Map?

Answer 6

A useful framework for analyzing market positioning, it illustrates the range of “position” that a product can take place in a market

Question 7

What are the two possible dimensions for the axes of a positioning map?

Answer 7

PRICE & QUALITY

Question 8

What are the advantages of a Positioning Map?

Answer 8

Helps spot gaps in the market
Useful for analyzing competitors
Encourages use of market research

Question 9

What are the disadvantages of a Positioning Map?

Answer 9

Just because there is a gap, doesn’t mean there is a demand
Not guarantee of success
How reliable is the market research?