Unit 1.1

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Mass Markets

Advantages

  • Large scale production means economies of scale, so lower average unit costs
  • Easy to target everyone equally
  • Large sales volumes, so high revenue to be pumped into R&D

Disadvantages

  • Lots of competitors
  • All products in the market are similar, so must be differentiated through marketing, this is expensive
  • High volume production is not flexible to demand changes.

Evaluation

The market aimed at the general population, so products are sold to consumers in the same way.

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