Mass marketing and niche marketing — common mistakes

In an exam, when analysing a business that uses mass marketing, always connect the strategy to specific business functions. For example, link it to Finance (high promotional budget), Operations (flow production, economies of scale), and Marketing (widespread distribution channels, mass media advertising).

When asked to recommend a strategy in a case study, always justify your choice with evidence from the text. For example, 'As a small start-up with limited capital of £50,000 (evidence), a niche strategy would be more appropriate than a mass market strategy because it requires lower initial investment in promotion and production (application and analysis).'

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.

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.

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.