Mass and niche markets

What are the 4 purposes of marketing?

• Anticipating demand.

• Recognising demand.

• Stimulating demand,

• Satisfying demand.

What does market share refer to?

The proportion of a market held by a business or product.

What does market share indicate?

Indicates who the market leader is, and how dominant each business is within the market.

What is a mass market?

When the same products are sold to all consumers and marketed in the same way.

e.g. Coca Cola, cereal and computer software.

Who do products appeal to in mass markets?

Products appeal to huge numbers of customers.

What do businesses provide in a mass market?

Businesses produce large quantities at a lower cost and benefit from economies of scale.

What are niche markets?

When products are targeted at a small segment of people often untouched by larger businesses.

What do customers usually have in niche markets?

Customers will often have specific needs e.g. fishing equipment.

What can be said about niche products?

Niche products are premium priced and are highly differentiated.

What can be said about businesses that operate in niche markets?

Businesses are skilled and highly specialised.

What is market size?

The total value or volume of sales in the market.

Can be measured in money terms or by the amount sold.

What is the equation for revenue?

No. units sold x price

What is the equation for market share?

Sales of one firm/total market sales x 100