The market Flashcards
What is niche marketing
Where a business targets a smaller segment of a larger market, where customers have specific wants and needs
What is mass marketing
Where a business targets the largest part of the market, where there are many similar products offered by competitiors
What are the key features of a mass market
Customers needs are more general/less specific.
Customers form a majority.
Associated with higher production and output.
Advantages of a niche market
Less competition, clear focus, can charge a higher price, profit margins higher, customers tend to be loyal.
Disadvantages of targeting a niche market
Lack of economies of scale, risk of over dependence on a single product or market, may attract competition if successful.
What is market size
measure of the total available demand for competitors in a market.
What is market growth
The rate of change of market size
What is market share
How the overall market is split between existing competitors
Why might a market change
customers tastes and preferences, impact of technology, new market entrants
