Question 1

Is niche marketing only for small businesses?

Accepted Answer

Not exclusively. While it is a common and effective strategy for small businesses due to lower resource requirements, large companies also use niche marketing. For example, a large car manufacturer like Toyota (mass market) also owns Lexus, which targets a luxury niche market. This is often part of a multi-brand strategy to capture different market segments.

Question 2

Does mass marketing always mean the product is low-priced?

Accepted Answer

No. Mass marketing refers to the strategy of targeting a broad audience with a standardised product, not its price point. While economies of scale can enable lower prices (e.g., a supermarket's own-brand baked beans), many mass-marketed products are premium, like the Apple iPhone or a Samsung flagship television. The key is the undifferentiated approach, not the price.

Question 3

Can a business move from a niche to a mass market strategy?

Accepted Answer

Yes, this is a common growth path. A business may start by successfully serving a niche, building a strong brand reputation and generating profits. It can then use these resources and brand equity to expand, either by targeting adjacent niches or by developing a more standardised product for the mass market. The Body Shop is a classic example of a business that started in a niche (ethically sourced cosmetics) and grew into a mass-market presence.

Mass marketing and niche marketing

What you need to know

Mass marketing and niche marketing