Marketing- Ie Mass

Question 1

Advantages of mass marketing

Answer 1

Economies of scale- bulk buy raw materials, leads to lower unit costs
Brand awareness
Large target market allows for high sales revenue

Question 2

Examples of products in mass market

Answer 2

Petrol, Coca Cola, McDonald’s, British Gas

Question 3

Disadvantages of mass market

Answer 3

High competition, have to lower prices and cant have premium products as it it hard to add value
Diseconomies of scale, harder to control and communicate in larger organisation
Higher promotion costs

Question 4

Niche market

Answer 4

Subsection, consumers with similar needs and characteristics

Question 5

Advantages of niche market

Answer 5

Meet and identify specific customer needs
Potential to charge higher prices
High levels of customer satisfaction
Build brand loyalty

Question 6

Disadvantages of niche market

Answer 6

Lack of economies of scale- so higher production costs
Need to monitor changes in trends closely
Limited opportunity for market growth
High risk strategy, market changes, competition enters

Question 7

Segmentation

Answer 7

Understanding the customers

Question 8

Targeting

Answer 8

Decide who’s needs you can meet