Mass Marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible.
Whereas , niche marketing is about concentrating all marketing efforts on a small but specific and well defined segment of the population. Niches do not 'exist' but are 'created' by identifying needs, wants, and requirements that are being addressed poorly or not at all by other firms, and developing and delivering goods or services to satisfy them. As a strategy, niche marketing is aimed at being a big fish in a small pond instead of being a small fish in a big pond.
There are a number of advantages and disadvantages of niche marketing. By definition, a niche market is a subset of a market on which a particular product is focused. Niche marketing defines product features, production qualities, demographics and price range to satisfy specific marketing needs.
- Less competition: Unlike in generalized marketing where market competition is still, niche marketing has quite less competition for the viable customers purchasing the products.
- Brand loyalty: Niche marketing makes it possible for businesses to build their brand loyalty. This marketing approach lets you provide customers with products and services they need and desire. You end up having a leg up on the competition because items in a niche market are difficult to find in general products.
- Indepth market insight: Niche marketing is about taking your products to people who have an interest in receiving them. This helps the business to redefine its strategies. Once a business begin to concentrate fully on niche marketing, it learns about new products, innovations and ideas about the market which helps to strengthen its strategies.
- Cost effective Marketing: Niche marketing is extremely cost-effective. For instance, if you are offering a product for a selected demographic, you could advertise the product using a local media so that marketing budget go a lot further, allowing you to use a more comprehensive media mix. With this approach, you will be able to reach a larger percentage of people who are more likely to use your services or purchase your products.
Because of the smaller market size, this marketing approach is not suitable for a company that is small and intends to grow in the current market. The smaller market makes it difficult to enjoy a larger profit margin in the market.