4.2 Mass vs Niche Markets

Advantages of niche markets?

• Better focus, less competition

• better focus, more competition

• less focus, less competition

• less focus, more competition

What is a niche market?

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

• A market in which business sell to a small customer group with similar needs

What is a mass market?

• When a business sells the same 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.

What does a niche market do?

• Targets broad market segments

• specific selling proposition

• Targets specific market segment

• Targets a unique market

What does mass marketing do?

• Unique product made for broad audience

• Targeting audience

• Mass production

• Targeting a broad range of segments

Niche marketing disadvantages

• More money is made

• Profitable niche markets may attract larger competitors.

• Average cost of product tends to be higher

• Small and limits potential customers

A disadvantages of mass markets

• High barriers of entry for some businesses in mass production

• Economies of scale

• High barriers of entry for some businesses in marketing

Advantages of mass marketing

• Economies of scale, saving time and resources, small customer base

• Economies of scale, losing of time and resources, large customer base

• Economies of scale, saving time and resources, large customer base

Differentiation is the act of distinguishing a business or products from competitors in the market.

• True

• False

Undifferentiated marketing is an aspect of Niche markets.

• True

• False