What’s it: A mass market is a large market with little or no difference in tastes & needs between consumers, at least in companies’ eyes. The company targets many end consumers và assumes they need the same sản phẩm and sale mix. Therefore, khổng lồ market products, they vì not segment the market.
Bạn đang xem: Mass markets
Difference between mass market & niche market
To reach the mass market, companies develop the same and standardized products for everyone. They adopt another uniform sale mix (mass marketing). The same price, promotion, & distribution is used for all consumers in the market. They sell products at affordable prices, so they are attractive lớn many consumers. They also take advantage of the mass truyền thông to promote products. Also, they rely on mass production methods to achieve higher economies of scale và profits.
A mass market contrasts with a differentiated market or a niche market. Like the mass market, a differentiated market consists of many consumers. We điện thoại tư vấn both the main markets.
It’s just that, in a differentiated market, companies highlight uniqueness (differentiated products). Thus, they can achieve higher profit margins than mass marketing because consumers are willing khổng lồ pay a higher price. They also acknowledge consumers in the market have different needs & tastes. Hence, they divide the market into several market segments. They then select target segments and differentiate the kinh doanh mix accordingly. That way, they better satisfy consumers.
Furthermore, a niche market is a small part of the main market with specific needs. For example, most consumers need clothes. However, some companies focus on niche markets, such as đứng top fashion houses. They target several groups, such as artists và politicians. They customize their products according khổng lồ the tastes of individual customers instead of mass-producing products.
Mass market examples
Many of your daily products, such as soap, shampoo, và detergent, are examples of mass products. Paper towels, petrol, electricity, gas, and news sites are other examples. Manufacturers thiết kế them in relatively similar ways. Besides, their prices (or subscription fees) are relatively similar.
Another example of a hàng hóa on the mass market is Coca Cola. The company sells it at high volumes all over the world with a standard taste. Besides targeting the mass market, the company also offers differentiation through several brands & flavors such as Caffeine-Free Coca-Cola, Coca-Cola Zero Sugar, Coca-Cola Cherry, và Coca-Cola Vanilla.
Ready-to-wear clothes are another example. Manufacturers produce them in bulk, are standardized, and rely on machines. They contrast with products from well-known designers who rely more on product customization và often use their hands khổng lồ produce them.
Mass market characteristics
The mass market has the following characteristics:
The market covers many consumers. That’s because their needs & wants are more general & less specific. For example, consumers buy original Coca Cola for drinks while they are relaxing. Of course, they outnumber consumers who buy Coca-Cola Zero Sugar for health reasons.
Products are relatively standard và homogeneous. Products provide relatively similar satisfaction. So, it does not make consumers loyal to a product. As a result, switching costs are relatively low.
Price is the basis of competition. Mass products usually have a similar price. The difference is insignificant. Low loyalty và high switching costs encourage companies lớn offer lower prices to attract customers. It is a weapon to steal customers from competitors & increase market share.
Companies rely on mass production. They improve profits by achieving higher economies of scale. With a lower cost structure, companies can offer lower prices & attract more purchases. Ultimately, higher sales volumes serve to lớn increase production capacity further.
Mass kinh doanh mix is the mainstay. Companies strive to lớn expand their distribution channels lớn reach as many consumers as possible. They also rely on mass promotions lớn encourage consumers to lớn buy products. Advertising messages appear through mass media such as television & can reach millions of viewers in one broadcast.
Mass market advantages
Marketing products in the mass market has some advantages, including:The market size is large, và its growth prospects are also high as it comprises a large portion of the population.Companies also benefit from cost-efficiency through higher economies of scale, whether in production, marketing, promotion, or other business functions.Consumers get low prices khổng lồ satisfy their needs.Considerable revenue due khổng lồ high sales volume compensates for low prices.Barriers khổng lồ entry may be high mainly from investing in expensive machinery for mass production & achieving economies of scale.Demand is less susceptible lớn changes in consumers’ buying habits or tastes than in niche markets because it is considered homogeneous.
Xem thêm: Số Dư Đảm Phí ( Contribution Margin Là Gì ? Bản Chất Và Cách Xác Định
Mass market disadvantages
The mass market also contains some disadvantages & challenges, including:
The profit margin per unit is low due khổng lồ low prices, so companies rely on volume to improve total profits.Low product variety because the sản phẩm is standardized & relatively uniform.The competition is high because many companies are present in the market and usually they are big companies.Small companies find it challenging to lớn enter or survive in the market because of the more limited economies of scale.The potential for high price wars due lớn low differentiation, low loyalty, and price becomes the basis of competition.
Also in Target Market
Mass Market: Characteristics, Examples, Advantages, Disadvantages