1. Niche v Mass Marketing

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

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

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

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

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

7. Disadvantages 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

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

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

10. Product proliferation
When a variety of products are produced to serve different tastes, e.g. IPC Magazines:
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