Niche Marketing vs Mass Marketing
The main difference between niche marketing and mass marketing is the size of the market they target. Niche marketing and mass marketing are probably the best marketing strategies implemented by the marketers at present. Literarily, a niche refers to a comfortable position. Therefore, as the term implies, niche marketing refers to a marketing strategy that is focusing on relatively small market in the market at large. Mass marketing refers to a marketing strategy that is focusing on the entire market. Therefore, mass marketing ignores the market segments available, and it intends to appear in the entire market. The niche market, on the other hand, is a clearly targeted market, where homogeneous buyers with similar needs exist. Comparatively, in the mass market, heterogeneous buyers with distinct needs are observed. Furthermore, the applicability of the two marketing strategies depend on the product or the service and the proposed value proposition. If the desired product requires to be catered to the society at large, mass marketing strategy would be viable and vice versa.
What is Niche Marketing?
Niche marketing strategy is defined as a marketing initiative proposed to capture a relatively small number of buyers in the market. Niche marketing strategy always intends to capture a clearly defined target market. For example, Sensodyne as a toothpaste can be identified as a product utilizes niche marketing strategy. The product is not catered to the society at large, rather it states, ‘Sensodyne for sensitive teeth’. So this quote depicts that the product does not intend to capture all the toothpaste consumers rather the consumers who have sensitive teeth. It is important to note that marketing niches are created and they do not exist. Above example illustrates that the product strives to create a marketing segment by mentioning the product is only suitable for the people who have sensitive teeth.
Benefits, Advantages, Disadvantages of Niche Marketing
By identifying a small subset of the entire market, it allows the marketer to cater the product with ease because a targeted market has homogeneous buyers with identical needs. A company follows a niche marketing strategy benefited with advantages such as less competition, an increased brand loyalty, relatively ease of managing, etc. Also, it has the disadvantage of growing potentials. It is accepted that niche marketing strategy is not suitable for small companies and for the companies that intend to grow. At the same time, relatively small market shares enjoy fewer profits comparatively but, as a result of increased brand loyalty, the consumer base will remain with the company for long time.
What is Mass Marketing?
Mass marketing strategy intends to appear in the whole market without confining into a small market segment. Mass marketing appears in the entire market and intends to capture the whole consumer base. The objective of such a strategy is to reach the maximum number of consumers as possible. In here, it is easy to identify a product’s marketing strategy. Mostly mass marketing applies intense advertising and promotion. If a product is promoted intensely via TV commercials, billboards, etc. it depicts the product utilizes mass marketing. For an example, assume a product like Coca-Cola. Intense marketing activities of the company intends to capture almost all the consumers in the world regardless of the income, lifestyle, profession, age, etc. of the consumer. Therefore, heterogeneous consumers are seen under mass marketing with distinct needs.
Benefits, Advantages, Disadvantages of Mass Marketing
Compared to niche marketing, mass marketing allows the company to enjoy high returns, and reduced economies of scale. In relation to disadvantages, high advertising and promotional costs are incurred and the company faces a high level of competition.
What is the difference between Niche Marketing and Mass Marketing?
• Definitions of Niche Marketing and Mass Marketing:
• Niche marketing refers to a marketing strategy that intends to appeal to a targeted market.
• Mass marketing refers to a marketing strategy that intends to appeal to the entire market.
• Niche marketing strategy hopes to capture an identical set of buyers who remains for a long time (Homogeneous buyers).
• Mass marketing strategy hopes to capture a distinct set of buyers who are really price sensitive (Heterogeneous buyers).
• Niche marketing strategy’s objective is to develop a value proposition.
• Mass marketing strategy’s objective is to increase the market share.
• Niche marketing strategy does not involve with intense adverting strategies.
• Mass marketing strategy involve with intense adverting strategies.
• Niche marketing strategy’s competition is relatively low as the company has a differentiated value.
• Mass marketing strategy’s competition is relatively high because of the high number of similar competitors.
• Profits and Economies of Scale:
• Niche marketing strategy enjoys fewer profits with comparatively low economies of scale in the short term.
• Mass marketing strategy enjoys high returns with comparatively high economies of scale.