mass and niche markets

• Dominant (mass) segment


  The largest segment in a market
• Niche segments


  Smaller segments in a market
• Confectionery market


  • Dominant segment: plain chocolate bar
  • Niche segments: luxury, organic or fair-trade chocolate
• Niche marketing


  Where a business targets a smaller segment of a larger market, where customers have specific needs and wants
• Advantages of niche marketing

  • Less competition
  • Clear focus on particular customers
  • Builds up specialist skill and knowledge
  • Can often charge a higher price
  • Profit margins often higher
  • Customers tend to be more loyal
• Disadvantages of niche marketing

  • Lack of economies of scale
  • Risk of over dependence on a single product or market
  • Likely to attract competition if successful
  • Vulnerable to market changes
• Mass marketing


  Where a business sells into the largest part of the market, where there are many similar products on offer
• Key features of a mass market

  • 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)
  • Success usually associated with low-cost operation, heavy promotion, widespread distribution or market leading brands