Mass market and niche market
Indicate how a business is doing compared to its rivals
Advantage of market size
Charge premium price. Easier to target customers as it focuses on customer needs. Small scale production can be flexible and follow trends. Less competition than in the mass market
Advantage of niche market
Can produce large quantities at a lower unit cost. Mass marketing is straightforward as everyone is equally targeted.Large volume of sales means high revenue so higher profit is made
Advantages of mass market
None
Disadvantage of market size
Lots of competition. Products need to be differentiated through marketing which can be expensive. High volume production not flexible to demand changes
Disadvantage of mass market
Very risky as demand may not be constant . May not have other products as a back up
Disadvantage of niche market
Can be measured through volume of sales which is the physical quantities of products produced and sold or Value which is the total amount spent by customers buying products
Market size
The market that is aimed at the general population. Product is sold to consumers in the same way
Mass market
Is a subset of the main market and addresses a specialist need
Niche market