Mass + Niche Markets

• What is a similarity between the two markets mentioned?


  Both markets create food for dogs.
• What is a key difference between the two markets?


  One market creates dog food that replicates human food.
• What are examples of products in mass markets?


  • Stationery
  • Trainers
  • Cars
  • TVs
  • Music
  • Fizzy drinks
  • Phones
  • Umbrellas
  • Jewellery
  • Bottled Water
  • Beds
• What are the characteristics of mass markets?


  • Targeted at a wide range of people
  • Market isn’t segmented
  • Products appeal to a wide range of customers
  • Widely available through various markets
  • Mass media is used for advertising
• What defines niche markets?


  • Identifying small, unsatisfied gaps in the market
  • Well-defined target market with distinct characteristics
  • Targeted promotional activities
  • Ability to charge higher prices
• What advantage does a niche market have regarding pricing?


  Niche markets can often charge higher prices.
• What are the advantages of niche markets?


  • Less competition
  • Ability to charge higher prices
  • More specific products
  • Guaranteed customers
  • Higher profit margins
  • Loyal customers
• What are the drawbacks of niche markets?


  • Smaller market size
  • Less promotion of products
  • Lower demand
  • Lack of economies of scale
  • Over-dependence on a single product
  • Vulnerable to market changes
• How is total market value measured?

  It can be measured in monetary terms, e.g., £20 million.
• What is the formula for calculating total market sales?


  Total market sales = number of units sold x price.
• What does market share represent?


  It represents the proportion of total market sales that a firm has.
• How is market share calculated?


  Market share = sales of one firm / total market sales.