Mass Markets & Niche Markets (Cambridge (CIE) IGCSE Business): Revision Note

Mass production allows the business to benefit from economies of scale, reducing average costs

Lower prices make products more affordable, leading to higher sales volumes

The business can target a large customer base, increasing the chance of strong demand

Mass marketing methods (e.g. TV, social media) allow efficient promotion to a wide audience

Products are often less unique, as they are designed to appeal to a wide audience

High levels of competition can make it difficult to stand out and often force prices down

Profit margins are lower, as prices are often kept low to attract mass market buyers

Products are highly specialised and unique, meeting the specific needs of a smaller customer group

The business can develop expert knowledge and a strong reputation within its chosen market

Customers are often willing to pay premium prices, leading to higher profit margins

Less direct competition means it's easier to build customer loyalty and brand recognition

Higher production costs due to smaller scale and limited demand

Businesses do not benefit from economies of scale, which can make pricing less competitive

Sales volumes are lower, as products may be less affordable and appeal to fewer people

The business may become too dependent on one product or market, increasing risk