NICHE VS MASS MARKET

Question 1

What is a Niche Market?

Answer 1

A niche market focuses on a small group of people or consumers who have intrests that align with the product or service of a specific organization.

Niches are created by identifying needs, wants and requirements that are being addressed poorly or not at all by other firms.

Question 2

What is a Mass market?

Answer 2

It is a large or broad market segment, or the entire market.

Question 3

Advantages of a niche market

Answer 3

• More focused marketing with a greater appeal
• Less competition + needs and wants are better met which leads to customer loyalty.

Question 4

Disadvantages of a niche market

Answer 4

• Number of potential customers is limited
• Due to limited size, economies of scale might not be reached

Question 5

Advantages of Mass market

Answer 5

• Likely economies of scale
• Different marketing startegies don’t need to be planned

Question 6

Disadvantages of Mass Market

Answer 6

• Intense competition
• Less focused - May waste resources by reaching individuals who are never likely to purchase the firm’s products.