Mass Verses Niche Marketing

Mass Verses Niche Marketing

NCFE Level 1/2 Award in Business and Enterprise

Multiple Choice

What is a mass market?

• When a business sells different products to all consumers and markets them in the same way.

• When a business sells the same products to all consumers and markets them in a different way.

• When a business sells different products to all consumers and markets them in a different way.

• When a business sells the same products to all consumers and markets them in the same way.

Multiple Choice

What is a niche market?

• A market in which businesses sell to a large customer group with similar needs.

• A market in which businesses sell to a variety of customers.

• A market in which businesses sell to a small customer group with specific needs.

• A market in which businesses sell one product to many consumers.

Mass Verses Niche Marketing

Mass marketing is creating a product which appeals to all types of consumer. Mass marketing often ends up with the brand name being used instead of the product name e.g. Hoover not vacuum cleaner. Companies make use of global mass markets which means selling the same product with similar marketing techniques all around the world.

Niche marketing is aiming a product at a specific type of consumer. A niche market is usually a smaller segment of a larger market. Companies using a niche market often get less sales than they would if they aimed at a mass market so they have to make up for this by charging a higher price (as the product is often more specific to consumer needs, the customer is normally willing to pay more). It is easier for smaller firms to operate niche markets as there is less competition from bigger companies.

Multiple Choice

Chocolate flavoured ice-cream is.........

• A product in a niche market

• A product in both markets

• A product in a mass market

• Very tasty

Multiple Choice

Specialist skills and knowledge is a feature of what market

• A mass market

• A niche market

• Both

• A specialist market

Multiple Choice

Which of the following is not a characteristic of a mass market?

• Smaller quantity of products produced

• Large customer base

• High sales and profits.

• Customer needs and wants are less specific.

Multiple Choice

Which one of the following is a disadvantage of a mass market?

• Higher revenues can be spent on R+D

• Homogenous products need to be differentiated through marketing which can be expensive.

• Mass marketing is straightforward as everyone is equally targeted.

• Large scale productions means economies of scale and lower average unit costs.

Open Ended

Examination Question One

Identify TWO characteristics of a Mass Market (2)

Open Ended

Examination Question Two

GFF manufacturers gluten-free foods. Its products are aimed at people who are not able to consume gluten in any food and drink

The market for gluten-free food and drink is a niche market

Explain TWO disadvantages to GFF of selling in a Niche Market (4)