Section 1.1.2 The Market Flashcards
mass marketing
the attempt to create products or services that have universal appeal, rather than targeting a specific type of customer
an example of mass marketing
coca-cola - aims product at old and young people
the ultimate prize of mass marketing
the creation of generic brands: brands that are associated with the product so much that customers treat the brand name as if it’s a product category e.g. coke (cola) and bacardi (white rum)
mass marketing leads to
high sales
high sales lead to
mass production
mass production leads to
lower costs and higher profits
does mass marketing always have low prices. give an example
no. for example, nintendo launched the ds and decided to become a handheld games console. because of great launch advertising and excellent games software development, it achieved mass market sales and kept its prices high. even now when the sales are declining, it is still the dominant brand in its market
niche market
a very small segment of a much larger market
what does niche marketing involve
identifying the needs of the consumers that make up the niche. a specialised product or service is then designed to meet the distinctive needs of these consumers
why are prices usually higher in a niche market
they sell their products in relatively low volumes and so their prices are usually higher than a mass market alternative
where do niche market operators often distribute their products
through specialist retailers, or directly to the consumer via the internet
