slide 1.1.1

• What is niche marketing?

  Targeting a smaller market segment
• Why do businesses engage in niche marketing?

  To meet specific needs and wants of customers
• What is mass marketing?

  Selling to the largest part of the market
• What characterizes a mass market?

  Customers have general needs and wants
• What is a key feature of a niche market?

  Targets a smaller segment of a larger market
• What are the key features of a mass market?

  • Majority of customers in the market
  • General customer needs and wants
  • Higher production output and capacity
  • Potential for economies of scale
  • Success linked to low-cost operations
• What is the aim of mass marketing?

  Create products with universal appeal
• What is a benefit of successful mass marketing?

  Widest potential customer base
• What is a drawback of targeting a niche market segment?

  Vulnerable to market changes
• What are the advantages of targeting a niche market segment?

  • Less competition
  • Clear focus on specific customers
  • Builds specialist skills and knowledge
  • Higher price potential
  • Higher profit margins
  • More customer loyalty
• Why might a business face risks in a niche market?

  Over dependence on a single product or market
• What is a potential benefit of economies of scale in mass marketing?

  Lower unit costs
• How does mass marketing relate to brand strength?

  Builds strong brands associated with products
• What is the relationship between mass marketing and market research costs?

  Market research costs are relatively low
• What is a common characteristic of customers in a mass market?

  They have general needs and wants