MASS MARKET AND NICHE MARKET

MASS MARKET

                MASS MARKET can be simply defined as when a business sells the same products to all consumers and market them in the same way.Some businesses sell their products in a mass market.Fast moving consumer goods, such as crisps, breakfast cereals, computer software and soft drinks are sold globally.

               This means that businesses can produce large quantities at a lower unit cost by exploiting economies of scale. This might result in higher sales and higher profits. However ,there is often a lot of competition in mass markets and therefore businesses spend lots of money on marketing.

NICHE MARKET

                NICHE MARKET is a small market segments that has sometimes gone untouched by large businesses.Niche markets have small group of customers.
                Niche marketing is the compete opposite on mass marketing.Small firms can survive by supplying niche market.It is a lot easy to focus on customer needs in niche markets.There is also no competition in niche markets it may also be possible to charge
 premium prices.
                However if a business successfully exploits a niche market it is still may attract competition.If a large business decides to enter niche market they may find it easy to overrun a small rival.Also business that rely on single niche market may be vulnerable because they are not spreading their risk.

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