Mass Market
Mass market is where a large number of consumers are present.When the business cater the product
to mass market they will not focus on one costumer group but the total group.
Advantages
* Large number of consumers,therefore high demand.
* The market will be already tested,therefore very low risk.
* Easy to enter the market.
* Economy of scale due to mass production.
Disadvantages
* High competition.
Niche Market
It is a highly profitable small market segment with few number of suppliers and consumers with
distinctive needs.
Ex. Foreign food items
Luxuries, fast cars
Advantages
* Price is inelastic therefore can charge higher prices.
* Few number of suppliers therefore few competition.
* Permanent set of consumers will be created.
Disadvantages
* High risk in the market
* If a permanent customer is lost the firm will be in danger.
* If too successful big companies may enter and profit will be lost.
* Economies of scale can not be gain.
No comments:
Post a Comment