Mass vs. Niche Markets
A market with a large number of sales of an identical product appealing to most people.
Mass market.
Dividing a market into parts by consumer characteristics to target products.
Market segmentation.
Collecting and analyzing first-hand data for the firm’s specific needs.
Primary research.
A small group is invited to discuss a product and give opinions.
Focus group.
Best format for reporting opinions and other hard-to-quantify results.
Written report (qualitative results).
: A small, specialized segment of a larger market where a unique product appeals to a specific group.
Niche market.
Segmenting by age, gender, income, social class, or family size.
Demographic segmentation.
Name one limitation of primary research.
High cost / time-consuming / possible sampling or question bias.
Watching real purchasing or service experiences secretly, including “mystery guest.”
Observation (mystery shopping).
Bar charts, pie charts, and pictograms are most useful to show this.
Composition/relative importance of quantitative results.
State one advantage of mass marketing.
Economies of scale / large growth potential / spending changes hurt less.
Segmenting by lifestyle, personality, or attitudes.
Psychographic segmentation.
Collecting and analyzing data from second-hand sources.
Secondary research.
Selling a limited quantity in a selected area to gather feedback before a full launch.
Test marketing.
The graph type you’d choose to show a trend over time.
Line graph.
Give one disadvantage of niche marketing.
Higher unit costs / vulnerable demand / attracts competitors.
Give one benefit of segmentation.
Better targeting / more efficient marketing / identify underserved groups.
Give one limitation of secondary research.
May be outdated / collected for a different purpose.
A cheaper way to reach people over a large area, but often very low response rate.
Posted (mailed) questionnaires.
Why does choosing an appropriate presentation format matter?
It makes conclusions easier and more accurate.
“Hand-crafted vegan leather wallets for eco-conscious professionals” fits which market type?
Niche market.
Which segmentation variable best isolates likely buyers of a BMW 7 Series?
Demographic (income / social class).
Which research type can create competitive advantage because rivals don’t have the data?
Primary research.
Online forms that collect data instantly across wide areas—but can suffer bias and low response.
Online questionnaires/surveys.
You need precise numerical values rather than visuals; what should you use?
Tables.