Theme 1 Topic 9
The Market
Mass and Niche Markets
Niche Marketing – targeting a relatively small segment of the market e.g. selling a judo magazine
Advantages Disadvantages
Charge higher prices Less customers/sales
Less competition Changes in demand make them vulnerable
Easier to maintain quality Large firms may join market
Mass Marketing – targeting a large part of the market or the whole market with a product that appeals to a
wide range of customers
Advantages Disadvantages
More customers/sales available Smaller market share
More profit overall Sell for less
Smaller businesses unable to enter market Changes in demand lead to half empty
warehouses
Market Size
Market Size – the total sales of all the companies within a market-place
The size of a market can be measured by:
The number of items sold by all the businesses in the market (volume of sales)
The amount of spending by all the customers in the market (the value of sales)
Market size is calculated by:
Adding together the number of items sold by all the different firms operating in a particular market
Or
Adding together the sales revenue of all the different firms operating in a particular market
Market Share
Market Share – the percentage of total market sales held by one firm
Market Share (%) = The product’s or firm’s sales x100
Total market sales
Market share is an important measure of performance when it comes to marketing and is often a marketing
objective that a business will set for itself. By increasing its market share, a firm will be performing better
relative to its competitors.
A market leader is the business with the largest market share.
The Market
Mass and Niche Markets
Niche Marketing – targeting a relatively small segment of the market e.g. selling a judo magazine
Advantages Disadvantages
Charge higher prices Less customers/sales
Less competition Changes in demand make them vulnerable
Easier to maintain quality Large firms may join market
Mass Marketing – targeting a large part of the market or the whole market with a product that appeals to a
wide range of customers
Advantages Disadvantages
More customers/sales available Smaller market share
More profit overall Sell for less
Smaller businesses unable to enter market Changes in demand lead to half empty
warehouses
Market Size
Market Size – the total sales of all the companies within a market-place
The size of a market can be measured by:
The number of items sold by all the businesses in the market (volume of sales)
The amount of spending by all the customers in the market (the value of sales)
Market size is calculated by:
Adding together the number of items sold by all the different firms operating in a particular market
Or
Adding together the sales revenue of all the different firms operating in a particular market
Market Share
Market Share – the percentage of total market sales held by one firm
Market Share (%) = The product’s or firm’s sales x100
Total market sales
Market share is an important measure of performance when it comes to marketing and is often a marketing
objective that a business will set for itself. By increasing its market share, a firm will be performing better
relative to its competitors.
A market leader is the business with the largest market share.
