niche vs mass marketing

info sheet

HideShow resource information
Preview of niche vs mass marketing

First 363 words of the document:

Niche vs. mass marketing
Mass marketing is the attempt to market a product to all consumers in a given market with the aim of
achieving an acceptable percentage of a big market, e.g. Waitrose with its 4% share of the huge
grocery market. In contrast, niche marketing is the attempt to market a product to a relatively small
market but with the aim of dominating that market. This process of segmentation may also lead to
increases in market share, as tailoring new products to specific types of customer can make them
increase their rate of purchasing, e.g. the launch of adult-focused crisps such as Walkers Sensations.
True or false?
1. Mass marketing is better than niche marketing?
2. A product in a niche market is likely to be quite price inelastic
3. Advertising to the mass market is usually more expensive than advertising to a niche market
4. Tropicana orange juice is an example of a brand that was once a niche, but is now a mass
market brand
Category Benefit Disadvantages
Mass marketing Less risky since the Increase competition
business is no Difficult to appeal to
dependent upon one individual consumers
small segment of a
Sales revenue are
usually higher
Niche marketing Less competition There are fewer
Products can be tailor potential customers
made to meet the Profits are likely to be
needs of the customer lower whilst prices
e.g. wedding cakes tend to be higher
A product aimed at the mass market is likely to be price elastic because of the amount of
competitors, if competitors have low prices, demand will decrease for the rival with the highest
price. Price elastics means price changes in effect to factors.
Small firms find it easier to compare in niche markets because there is less competition
Product differentiation is especially important in mass markets because other competitors will try to
copy so the product needs a USP so that their product will be popular.


No comments have yet been made

Similar Business resources:

See all Business resources »See all resources »