Market - Mass and niche

• • Mass Market = Where a business sells into the largest part of the market, where there are many similar products on offer
• Niche Market = Where a business targets a smaller segment of a larger market, where customers have specific needs and wants
• Mass Market Characteristics = Customers form the majority in the market. Customer needs and wants are more "general" & less "specific" Associated with higher production output and capacity (economies of scale)
• • Niche market Characteristics = Less competition – the firm is a "big fish in a small pond"
  • Clear focus - target particular customers (often easier to find and reach too)
  • Builds up specialist skill and knowledge = market expertise
• • Competition affecting The market = encourages businesses to produce and boosts the economy in general. Encourages businesses to improve the quality of their product/service.
• 1. Risk = risk is a circumstance or factor that may have a significant negative impact on the operations or profitability of a given business.
• Uncertainty = being unsure of the factors influencing sales and therefore being unable to predict what will happen to the business in terms of its profits or growth
• Market Size & Market Share:

  • The size of a market can be measured through  sales volume  or sales value
  • Sales volume is the number of products sold i.e the physical number of units sold
  • Sales revenue = price x quantity sold i.e the financial value of the units sold
• Market Share calculation = sales of business/total market sales X 100