Mass and Niche Marketing

What is a niche market?

• A market in which businesses sell to a large customer group with similar needs.

• A market in which businesses sell to a variety of customers.

• A market in which businesses sell to a small customer group with specific needs.

• A market in which businesses sell one product to many consumers.

What is a mass market?

• When a business sells different products to all consumers and markets them in the same way.

• When a business sells different products to all consumers and markets them in a different way.

• When a business sells the same products to all consumers and markets them in a different way.

• When a business sells the same products to all consumers and markets them in the same way.

Which one of the following is a disadvantage of a mass market?

• Higher revenues can be spent on R+D

• Homogenous products need to be differentiated through marketing which can be expensive.

• Mass marketing is straightforward as everyone is equally targeted.

• Large scale productions means economies of scale and lower average unit costs.

Which of the following is not a characteristic of a mass market?

• Smaller quantity of products produced

• Large customer base

• High sales and profits.

• Customer needs and wants are less specific.

Specialist skills and knowledge is a feature of what market

• A mass market

• A niche market

• Both

• A specialist market

Chocolate flavoured ice-cream is.........

• A product in a niche market

• A product in both markets

• A product in a mass market

• Very tasty

Which TWO of the following are benefits of mass marketing?

• As there are more customers in the market, the business has the opportunity to make higher sales, which can potentially lead to higher profits

• A large business that operates in the mass market is likely to need to spend more money on promotion

• There is less competition in the market, so the business does not need to focus on competing with other companies

• Mass marketing is used by big businesses that operate large-scale production, so they can benefit from economies of scale

Which TWO of the following are limitations of niche marketing?

• There is less competition in the niche market

• Businesses in the niche market cannot use geographic segmentation

• Economies of scale are unlikely to be achieved in the niche market

• Small changes in consumer spending can have a large impact on businesses that are operating in the niche market.

Mass marketing involves identifying market segments, selecting one or more of them, and developing products and marketing programs tailored to each.

• True
• False

Which of the following is an advantage of a niche marketing?

• Less Competition

• High number of sales

• Wide customer base

• Less Risky