Mass Markets


	Mass Markets
	Advantages Large scale production and economies of scale may be possible. Unit costs can be kept lower helping to push prices down. Higher sales, revenue and profit is possible High barriers to entry may mean decreased, competition for already established firms, these may include the high costs of set up, existing rivals, brand loyalty, low prices or actions by rivals. Easier to fund research and development. Brand awareness	Disadvantages High costs as larger scale operation and manufacture is needed to meet mass market demand, high fixed costs. Products must appeal to a wide range of consumers so firms are unable to easily add value by tailoring products to consumers specific tastes. This results in lower prices having to be charged. Consumer tastes change more quickly in mass markets and are harder to keep up to date with. More competition often from large international rivals who compete using lower prices. Changes in demand can lead to unused spare capacity which increases unit costs.
	Evaluation

Large scale production and economies of scale may be possible. Unit costs can be kept lower helping to push prices down.
Higher sales, revenue and profit is possible
High barriers to entry may mean decreased, competition for already established firms, these may include the high costs of set up, existing rivals, brand loyalty, low prices or actions by rivals.
Easier to fund research and development.
Brand awareness

High costs as larger scale operation and manufacture is needed to meet mass market demand, high fixed costs.
Products must appeal to a wide range of consumers so firms are unable to easily add value by tailoring products to consumers specific tastes. This results in lower prices having to be charged.
Consumer tastes change more quickly in mass markets and are harder to keep up to date with.
More competition often from large international rivals who compete using lower prices.
Changes in demand can lead to unused spare capacity which increases unit costs.

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