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