3C : mass & niche markets

Question 1

what are mass markets ?

Answer 1

markets that sell a large volume of the same products to all customers and promoted in the same way e.g. Coca-Cola , Microsoft.

Question 2

what are the benefits of a mass market ?

Answer 2

*economies of scale
*products sold to a large number of consumers

Question 3

what are the problems of a mass market ?

Answer 3

*expensive to set up mass production facilities
*expensive promotion costs
*does not guarantee profitable products
*competition is fierce

Question 4

what are niche markets ?

Answer 4

when a business concentrates on one type of market. often low number of customers

Question 5

what are the benefits of a niche market ?

Answer 5

*by specialising in one segment one segment businesses can charge a higher price
* competition can be avoided , since they are overlooked.
* allows the company to focus on its strengths

Question 6

list the problems of the niche markets

Answer 6

*difficult to persuade retailers to stock the product.
*misses out on economies of scales

Question 7

list the differences between mass and niche markets

Answer 7

*niche markets are small but focus on one type of markets
*mass market products may have lower prices than niche markets products.