Concepts of Niche Marketing and Mass Marketing


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Concepts of Niche Marketing and Mass Marketing

Concepts of Niche Marketing and Mass Marketing

Benefits and Limitations of Both Approaches to Marketing


The term market is related to the customers and potential customers of some specific products or services where sellers of those particular products are also included. The size of the market can be measured by the value of the total number of units sold of that particular product or service by all the suppliers. The market can be divided into two main categories i.e. Mass Market or Niche Market. 

Mass Marketing

The market having capacity of sale of a product on large scale will be considered as Mass Market. If a product is produced to be sold on large number of people, it will be a mass marketing for that particular product. We can have an example of bath soap or an orange juice that could be sold to anybody. 

The products of mass marketing are basically designed to be sold on large scale. It is because these products are advertised more and more to appeal most of the people who can buy these products. 

Advantages of Mass Marketing

The sale is very high in mass markets as main aim is to attract the masses

When there is mass production, the firm can be benefitted from economies of scale i.e. the concept in which minimum per unit cost occurs due to maximum production.

Different varieties of products are sold. If sale of one product is not successful and profitable, the other product could be beneficial in earning profit. 

There is always an opportunity for the growth of the business as there is always a large number of sales expected.

Disadvantages of Mass Marketing

As there is more profit expected, the competition is also very high in mass market.

Products are made for masses so that the high advertising and promotion cost also occurs

The products follow the same standards so that sometimes some people don’t get satisfied with these products and chance of decrease in sales increases that leads towards the loss in business.   

Niche Marketing 

Sometimes a business organization targets a small segment from a much larger market. Mostly it happens with some specialized products. This is called niche marketing.

The niche market is basically a small and specialized segment of a larger market.

We can have an example of some expensive products that are sold in much fewer numbers and have less market share but the profit of these products is so high. 

There is a large market for watches but there are very few people who can afford Rolex. There are different brands of cars available in the market but Rolls Royce is not affordable for everyone. We all buy dresses but very few can afford to wear Armani’s designer suits. The sale of these products is less in numbers but the profit of these products is quite high. High profit with less sales is possible when product is made for a small or specialized segment of a large market. 

Advantages of Niche Marketing

There is no need to have a large firm to serve a segment of a niche market. Sometimes, small firms with specific target markets sell their products successfully. They target niche and not masses, so that they can avoid competition that is not possible for large scale business organizations.

In a niche market, the business organizations focus the needs of their consumers while designing the products. It is not possible in the products of mass marketing as products are made on the same standard. In this way, the business organizations serving in a niche market have a competitive edge over organizations serving in the mass market.     

Disadvantages of Niche Marketing

Niche markets are small markets so that only a few units could be sold as compared to the mass market. It is because there are fewer opportunities to grow for the firms serving any niche market.

Most of the businesses in niche markets offer only one product. It is a risk for them. If the demand for that particular product falls, they may get out of the business. It is better to go for more than one product to avoid that risk.   

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