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Niche & Mass Marketing

Niche Marketing

What is Niche Marketing?

-By Harsha Chugh

Niche marketing identifies the needs of the small part of the whole market and then develops products to satisfy those needs Businesses in a niche market sell high priced and high status goods.

A Niche Market

Benefits

  • Unlike in generalized marketing where market competition is still, niche marketing has quite less competition for the viable customers purchasing the products

  • Niche marketing makes it possible for businesses to build their brand loyalty. This marketing approach lets you provide customers with products and services they need and desire

  • Niche marketing targets a very specific kind of customer, so depending on what you’re promoting, your niche market may be very small

Limitations

  • The opportunity to earn high profits might attract competitors and this will reduce prices n future profits.

  • The small size of the market means that economies of scale are unlikely to be achieved.

  • Small changes in consumer spending patterns could have a very significant impact on firms operating in niche markets.

Company involved in this Marketing- Whole Foods

  • Whole Foods goes beyond groceries to reach nutritionally aware consumers who will likely pay a premium for the health benefits of organic food.

  • Since Whole Foods first opened its doors, the organic food niche has grown into the mainstream.

  • However, Whole Foods continues to reach customers with creative content, and it even has a blog with healthy cooking techniques and recipes. The store also created an app that gives users access to exclusive digital coupons, local store info, and recipes.

Mass Marketing

What is Mass Marketing?

Mass marketing is a market strategy in which a firm decides to ignore market segment differences and appeal the whole market with one offer or one strategy Mass marketing is the opposite of niche marketing, as it focuses on high sales and low prices.

A Mass Market

Benefits

Benefits

  • Able to benefit from economies of scale

  • Less risky- since business is not dependant upon a small segment of the market

  • Sales revenue is usually higher

Limitations

  • Increased competition

  • Extremely expensive form of marketing and it is usually used by large companies that are well established

  • Fixed capital costs are usually high due to the need of large factories and expensive machinery

Companies involved in this Marketing

1. Walmart

Based out of Bentonville, AR Walmart ranks as the #1 Mass Market Retailer. There are over 11,453 Walmart stores across the United States.

2. Kroger

Kroger is the 3rd largest Mass Market Retailer in the United States. Based out of Cincinnati with over 2,625 stores.

3. Amazon

The largest e-tailer in the world, and the fourth largest Mass Market Retailer. Amazon’s headquarters is located in Seattle, WA.

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