Business Studies – 3.1.3 Mass markets and niche markets | e-Consult

A mass market targets a large number of customers with relatively homogenous needs and wants. Products are typically standardised and sold at competitive prices. Marketing strategies focus on broad reach through mass advertising (e.g., television, radio, print). Product differentiation is minimal. Examples include basic food items, household goods, and some forms of entertainment.

A niche market, conversely, targets a smaller, more specific segment of the population with particular needs or preferences. Products are often highly specialised and may command a premium price. Marketing strategies are more focused and targeted (e.g., online advertising, industry-specific publications). Significant product differentiation is key to success. Examples include organic foods, specialist sports equipment, or luxury goods.

In summary, the key differences lie in market size, customer homogeneity, product differentiation, and marketing approach. Mass markets prioritise volume, while niche markets prioritise profitability through specialised offerings.