Niche and mass marketing

Question 1

Define niche marketing

Answer 1

identifying and exploiting a small

segment of a larger market by developing products to suit it.

Question 2

Define mass marketing

Answer 2

selling the same products to the whole

market with no attempt to target groups within it.

Question 3

Advantages of niche marketing

Answer 3

If unexploited can allows firm a chance to sell at high prices and high profit margins
Niche market products hold a sense of quality

Question 4

Advantages of mass marketing

Answer 4

More consumers to sell to

Economies of scale

Question 5

Cons of mass marketing?

Answer 5

Low profit margins
Less adaptable
Low profit margins
High entry barriers= expensive capital

Question 6

Cons of niche marketing

Answer 6

Lack of economies of scale
Risk of over dependence on on one product
Competition will eventually arrive
Vulnerable to market change- “all eggs in one basket”