Niche v Mass Marketing Niche marketing l Targeting

Niche v Mass Marketing

Niche marketing l Targeting a product or service at a small segment of a larger market

Advantages l l l Less competition Costs – little scope for cost reduction Small-scale production Tailor-made products Targeting customers effectively

Disadvantages l l l Lower profits Changes in demand (more vulnerable) Market entry – larger firms attracted into the market

Mass marketing l Aiming a product at all (or most) of the market

Advantages l l l Large-scale production economies of scale higher profit margins High revenues Create barriers to entry for small firms Research & development Brand awareness

Disadvantages l l l High fixed capital costs Changes in demand capacity problems Effects of standardisation Competition – more vulnerable to low-cost competition from abroad Adding value – less scope

Product differentiation l l The degree to which consumers see a particular brand as being different from other brands Benefits firm through: l l Increased sales volume Greater scope for charging a higher price

Mass market How do you differentiate? l l Design, branding, packaging Clever promotional & advertising campaigns Different distribution methods NB – through employing elements of the marketing mix

Product proliferation l When a variety of products are produced to serve different tastes, e. g. IPC Magazines: l l Woman’s Own Loaded Ideal Home Uncut