The market Flashcards
1
Q
What is a mass market?
A
Aimed at general population
2
Q
What are the pros and cons to mass?
A
pros= less risk
lower average unit cost
larger volume of sales
cons= lots of competition
products need to be differentiated through marketing which is expensive
3
Q
What is a niche market?
A
Breakdown market according to customers traits/characters
4
Q
What are pros and cons to a niche market?
A
Pros= charge premium prices
easier to target customers
small scale production is more flexible
Cons= very risky as demand may not be constant
higher unit costs
5
Q
What is economies of scale?
A
The advantage that can sometimes occur as a result of increasing the size of a business
