1.1.1 – The Market
Mass VS Niche Markets
Mass Market = the market that is aimed at the general population e.g. regular toothpaste
Niche Market = the specialist product and is a subset of the main market that is aimed to
address a specific need e.g. Sensodyne toothpaste for sensitive teeth
Mass market products are sold to everyone in the same way…
Pros: Cons:
- Large scale production = - Lots of competition
economies of scale & lower - Can be expensive – marketing
average unit costs to different homogenous
- Marketing is straightforward = products
everyone equally targeted - High volume production – not
- Large volume of sales means flexible to demand changes
high revenue
- High rewards – put into
research and development
(R&D)
Niche market products are aimed at a particular subset of the market…
Cons:
Pros:
- Risk – as demand may not be
- Charge premium prices
constant
- Easier to target customers
- Higher unit costs – no
- Small scale production can be
economies of scale
flexible – follows trends
- Less competition
, Market Size
Can be measured through…
Volumes of scales – physical quantity of products sold
Value – total amount spent by customers
Market share:
The proportion of a market that is taken by a business, product or brand
Sale of ‘x’ X 100
Total sales
in whole
Mass market brands:
- Branding is important as it instils brand loyalty in customers
- All products are homogenous (all the same & reliable to customers) so differentiate
on branding
Niche market brands:
- For customers looking for specific, typically expensive products
Mass VS Niche Markets
Mass Market = the market that is aimed at the general population e.g. regular toothpaste
Niche Market = the specialist product and is a subset of the main market that is aimed to
address a specific need e.g. Sensodyne toothpaste for sensitive teeth
Mass market products are sold to everyone in the same way…
Pros: Cons:
- Large scale production = - Lots of competition
economies of scale & lower - Can be expensive – marketing
average unit costs to different homogenous
- Marketing is straightforward = products
everyone equally targeted - High volume production – not
- Large volume of sales means flexible to demand changes
high revenue
- High rewards – put into
research and development
(R&D)
Niche market products are aimed at a particular subset of the market…
Cons:
Pros:
- Risk – as demand may not be
- Charge premium prices
constant
- Easier to target customers
- Higher unit costs – no
- Small scale production can be
economies of scale
flexible – follows trends
- Less competition
, Market Size
Can be measured through…
Volumes of scales – physical quantity of products sold
Value – total amount spent by customers
Market share:
The proportion of a market that is taken by a business, product or brand
Sale of ‘x’ X 100
Total sales
in whole
Mass market brands:
- Branding is important as it instils brand loyalty in customers
- All products are homogenous (all the same & reliable to customers) so differentiate
on branding
Niche market brands:
- For customers looking for specific, typically expensive products
