1.1 Meeting Customer Needs

What is a market?

Where buyers and sellers meet. This may be face to face or through other means, like phone or online.

What is a niche market?

A market that targets a small variety of customers with a specialised product or service that isn't addressed by competitors.

What is a mass market?

A market that targets a wide variety of customers with a generalised product or service that is widely available.

What are some characteristics of a niche market?

1. Higher prices
2. Less competition
3. Small scale production.
4. Select locations or retailers.

What are some characteristics of a mass market?

1. Lower prices
2. A lot of competition
3. Large scale production
4. Many locations or retailers

What are some advantages of being in a mass market?

1. Wide customer base bringing to potential for a higher profit.
2. Economies of scale.
3. Needs and wants of customers are less specific so mass production can occur.
4. Market research should be simple.

What are some advantages of being in a niche market?

1. Much less competition than a mass market.
2. Can charge a higher price for a luxury product.
3. Potentially a higher quality than a mass produced product.
4. Clear focus on target customers.

What are some disadvantages of being in a mass market?

1. A lot of competition
2. Potentially low quality as products are mass produced.
3.