Source: https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-2-3-niche-and-mass-markets [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [IB Diploma](https://senecalearning.com/en-gb/revision-notes/ib-diploma.md) › [Business](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business.md) › [Business Management: IB Diploma](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma.md) › Niche & Mass Markets # Niche & Mass Markets Business Management: IB Diploma, topic 4.2.3 ## Niche vs. Mass Markets Markets can be split into mass markets and niche markets. Their characteristics are different. ### Mass market ![Mass market](https://image-v2.cdn.app.senecalearning.com/2019-01/c7c87d76-cb80-45f9-a22e-e73577c06c2c/target.png) - The mass market tries to make products and/or services for all consumers. - The mass market will be larger and the types of products will be more generalised. ### Niche market ![Niche market](https://image-v2.cdn.app.senecalearning.com/2019-01/b7505050-78b2-41f8-baff-088c24004b40/quality.jpg) - The niche market appeals to a much smaller segment. - The niche market will be smaller than the mass market. - The niche market provides products and/or services which focus on a specialist want or need. ### Examples ![Examples](https://image-v2.cdn.app.senecalearning.com/2018-09/4ed70f67-0515-4981-a3e0-7d31732179fe/mcdonalds-madonalds-fast-food-.jpg) - In the fast-food industry there are a few dominant players who appeal to the mass market - McDonalds, Burger King, Subway. - There is a smaller niche market for healthy fast food. This is addressed by businesses such as Leon. ### Benefits and disadvantages of mass markets ![Benefits and disadvantages of mass markets](https://image-v2.cdn.app.senecalearning.com/courseImages/physics/AQA%20New%20Modules/6.1.3/thumbs%20up.jpg) - Benefits: - Having more customers. - Benefitting from economies of scale (due to higher output levels). - Can build a strong market presence. - Disadvantages - Higher levels of competition. - Lower profit margins ### Pros and cons of niche markets ![Pros and cons of niche markets](https://image-v2.cdn.app.senecalearning.com/2018-05/26b87299-4bed-4b84-8693-0a0cc3c01a97/thumbs-up-1172213_960_720.png) - Pros: - Less competition. - Specific market. - Can develop specific expertise. - Higher profit margins. - Customer loyalty. - Cons: - No economies of scale. - Vulnerability because they have an undiverse product portfolio. ## Test yourself on Niche & Mass Markets - What are the two types of markets? - Which market segment appeals to all types of consumers? - In which market is a business more likely to gain economies of scale? - In which market is a business more likely to have less competition? [Practise this topic for free](https://app.senecalearning.com/classroom/course/96f95cf2-8acd-4f01-87ce-ad02d9a86dab/section/fc8483e6-7446-4968-90bf-46d7dfb04c5d/session) - Previous topic: [4.2.2 Segmentation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-2-2-segmentation.md) - Next topic: [4.3.1 Market Research](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-3-1-market-research.md) ## Business Management: IB Diploma contents ### 1 Business Organisation & Environment - 1.1 Introduction to Business Management - [1.1.1 Why Businesses Exist & Sectors](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-1-1-why-businesses-exist-and-sectors.md) - 1.2 Types of Organisation - [1.2.1 Sole Traders](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-2-1-sole-traders.md) - [1.2.2 Limited Liability](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-2-2-limited-liability.md) - [1.2.3 Non-Profit](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-2-3-non-profit.md) - [1.2.4 Franchising](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-2-4-franchising.md) - [1.2.5 End of Topic Test - Franchising](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-2-5-end-of-topic-test-franchising.md) - 1.3 Organisational Objectives - [1.3.1 External Environments](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-3-1-external-environments.md) - [1.3.2 Business Mission & Corporate Objective](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-3-2-business-mission-and-corporate-objective.md) - [1.3.3 Mission, Corporate Objectives & Strategy](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-3-3-mission-corporate-objectives-and-strategy.md) - [1.3.4 SWOT Analysis](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-3-4-swot-analysis.md) - [1.3.5 End of Topic Test - SWOT Analysis](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-3-5-end-of-topic-test-swot-analysis.md) - 1.4 Stakeholders - [1.4.1 Stakeholders](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-4-1-stakeholders.md) - 1.5 External Environment - [1.5.1 Social & Technological Environment](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-5-1-social-and-technological-environment.md) - [1.5.2 Lifestyle & Technological Environment](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-5-2-lifestyle-and-technological-environment.md) - [1.5.3 Corporate Social Responsibility](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-5-3-corporate-social-responsibility.md) - [1.5.4 Economic Environment](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-5-4-economic-environment.md) - [1.5.5 Political & Legal Change](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-5-5-political-and-legal-change.md) - 1.6 Growth & Evolution - [1.6.1 Growth & Retrenchment](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-6-1-growth-and-retrenchment.md) - [1.6.2 Challenges of Growth](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-6-2-challenges-of-growth.md) - [1.6.3 Growth Models](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-6-3-growth-models.md) - [1.6.4 End of Topic Test - Diseconomies of Scale](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-6-4-end-of-topic-test-diseconomies-of-scale.md) - [1.6.5 Internationalisation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-6-5-internationalisation.md) - [1.6.6 Sourcing Resources & Entering Markets](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-6-6-sourcing-resources-and-entering-markets.md) - [1.6.7 End of Topic Test - Internationalisation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-6-7-end-of-topic-test-internationalisation.md) - [1.6.8 Managing Internationalisation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-6-8-managing-internationalisation.md) - [1.6.9 Impact of Internationalisation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-6-9-impact-of-internationalisation.md) - 1.7 HL Only: Organisational Planning Tools - [1.7.1 Organisational Planning Tools](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/1-7-1-organisational-planning-tools.md) ### 2 Human Resource Management - 2.1 Functions & Evolution of Human Resource Management - [2.1.1 Setting Human Resource Objectives](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-1-1-setting-human-resource-objectives.md) - [2.1.2 Human Resource Management](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-1-2-human-resource-management.md) - [2.1.3 Labour Turnover & Retention](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-1-3-labour-turnover-and-retention.md) - [2.1.4 Labour Productivity](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-1-4-labour-productivity.md) - 2.2 Organisational Structure - [2.2.1 Organisational Structures](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-2-1-organisational-structures.md) - 2.3 Leadership & Management - [2.3.1 Managers](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-3-1-managers.md) - [2.3.2 Management Theories](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-3-2-management-theories.md) - [2.3.3 End of Topic Test - Management](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-3-3-end-of-topic-test-management.md) - 2.4 Motivation - [2.4.1 Motivating & Engaging Employees](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-4-1-motivating-and-engaging-employees.md) - [2.4.2 Taylor's Theory](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-4-2-taylors-theory.md) - [2.4.3 Maslow's Theory](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-4-3-maslows-theory.md) - [2.4.4 Herzberg's Theory](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-4-4-herzbergs-theory.md) - [2.4.5 Different Incentives](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-4-5-different-incentives.md) - [2.4.6 Evaluating Incentives](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-4-6-evaluating-incentives.md) - 2.5 Organisational (Corporate) Culture - [2.5.1 Managing Organisational Culture](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-5-1-managing-organisational-culture.md) - [2.5.2 Organisational Structures](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-5-2-organisational-structures.md) - 2.6 HL Only: Industrial/Employee Relations - [2.6.1 Improving Employer-Employee Relations](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-6-1-improving-employer-employee-relations.md) - [2.6.2 Case Study - The Winter of Discontent](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/2-6-2-case-study-the-winter-of-discontent.md) ### 3 Finance & Accounts - 3.1 Sources of Finance - [3.1.1 Internal Sources of Finance](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-1-1-internal-sources-of-finance.md) - [3.1.2 External Sources of Finance](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-1-2-external-sources-of-finance.md) - [3.1.3 Factors for Financing](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-1-3-factors-for-financing.md) - [3.1.4 End of Topic Test - Debt](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-1-4-end-of-topic-test-debt.md) - 3.2 Costs & Revenues - [3.2.1 Costs & Revenues](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-2-1-costs-and-revenues.md) - 3.3 Break-Even Analysis - [3.3.1 Profit](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-3-1-profit.md) - [3.3.2 Break-Even Analysis](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-3-2-break-even-analysis.md) - 3.4 Profitability & Liquidity Ratio Analysis - [3.4.1 Profitability Analysis](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-4-1-profitability-analysis.md) - 3.5 Cash Flow - [3.5.1 Cash Flow](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-5-1-cash-flow.md) - [3.5.2 Solutions to Cash Flow Problems](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-5-2-solutions-to-cash-flow-problems.md) - [3.5.3 Improving Cash Flow & Profits](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-5-3-improving-cash-flow-and-profits.md) - 3.6 HL Only: Investment Appraisal - [3.6.1 Investment Appraisal](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-6-1-investment-appraisal.md) - 3.7 HL Only: Budgets - [3.7.1 Cash-Flow & Budgets](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/3-7-1-cash-flow-and-budgets.md) ### 4 Marketing - 4.1 The Role of Marketing - [4.1.1 Setting Marketing Objectives](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-1-1-setting-marketing-objectives.md) - [4.1.2 Market Calculations](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-1-2-market-calculations.md) - 4.2 Marketing Planning - [4.2.1 Marketing Mix](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-2-1-marketing-mix.md) - [4.2.2 Segmentation](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-2-2-segmentation.md) - [4.2.3 Niche & Mass Markets](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-2-3-niche-and-mass-markets.md) - 4.3 Market Research - [4.3.1 Market Research](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-3-1-market-research.md) - [4.3.2 Market Mapping](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-3-2-market-mapping.md) - [4.3.3 Methods of Market Research](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-3-3-methods-of-market-research.md) - 4.4 The 4 Ps - [4.4.1 Product Decisions](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-1-product-decisions.md) - [4.4.2 Pricing Decisions & Price Skimming](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-2-pricing-decisions-and-price-skimming.md) - [4.4.3 Pricing Decisions & Price Penetration](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-3-pricing-decisions-and-price-penetration.md) - [4.4.4 End of Topic Test - Pricing & Competition](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-4-end-of-topic-test-pricing-and-competition.md) - [4.4.5 Promotional Decisions](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-5-promotional-decisions.md) - [4.4.6 Promotional Decisions 2](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-6-promotional-decisions-2.md) - [4.4.7 Promotional Decisions 3](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-7-promotional-decisions-3.md) - [4.4.8 Digital Marketing](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-8-digital-marketing.md) - [4.4.9 Evaluating Digital Marketing](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-9-evaluating-digital-marketing.md) - [4.4.10 Case Study - The Marketing Mix & Promotion](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-10-case-study-the-marketing-mix-and-promotion.md) - [4.4.11 Place & Distribution](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-4-11-place-and-distribution.md) - 4.5 HL Only: The Extended Marketing Mix - [4.5.1 The Extended Marketing Mix](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-5-1-the-extended-marketing-mix.md) - 4.6 HL Only: International Marketing - [4.6.1 International Marketing](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-6-1-international-marketing.md) - 4.7 E-Commerce - [4.7.1 E-Commerce](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/4-7-1-e-commerce.md) ### 5 Operations Management - 5.1 The Role of Operations Management - [5.1.1 Setting Operational Objectives](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-1-1-setting-operational-objectives.md) - 5.2 Production Methods - [5.2.1 Production Processes Overview](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-2-1-production-processes-overview.md) - [5.2.2 Production Processes](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-2-2-production-processes.md) - [5.2.3 Production Efficiency](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-2-3-production-efficiency.md) - [5.2.4 Technology & Production](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-2-4-technology-and-production.md) - 5.3 HL Only: Lean Prodution & Quality Management - [5.3.1 Importance of Quality](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-3-1-importance-of-quality.md) - [5.3.2 Measuring & Identifying Quality](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-3-2-measuring-and-identifying-quality.md) - [5.3.3 Total Quality Management](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-3-3-total-quality-management.md) - [5.3.4 Evaluating Total Quality Management](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-3-4-evaluating-total-quality-management.md) - [5.3.5 Case Study - Toyota Production System](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-3-5-case-study-toyota-production-system.md) - 5.4 HL Only: Production Planning - [5.4.1 Capacity](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-4-1-capacity.md) - [5.4.2 Productivity & Efficiency](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-4-2-productivity-and-efficiency.md) - [5.4.3 Technology & Efficiency](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-4-3-technology-and-efficiency.md) - [5.4.4 Improving the Supply Chain](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-4-4-improving-the-supply-chain.md) - [5.4.5 Inventory](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-4-5-inventory.md) - [5.4.6 Outsourcing](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-4-6-outsourcing.md) - 5.5 HL Only: Research & Development - [5.5.1 Organisational Planning Tools](https://senecalearning.com/en-gb/revision-notes/ib-diploma/business/business-management-ib-diploma/5-5-1-organisational-planning-tools.md)