Niche Marketing: Where a business targets a smaller segment of a larger market, where customers have specific needs and wants.

Mass Marketing: Where a business sells into the largest part of the market, where there are many similar products offered by competitors.

Niche Marketing

Profit margins often higherLower sales required to cover costsLack of economies of scaleDemand will be relatively low, so manufacturing will have to happen in smaller batches
Clear focusBecause they are targeting a niche market, they know exactly what customers want.If successful likely to attract competitionOther businesses will be interested to expand their market share, because it would lead to greater income.
Less competitionA smaller market segment means less businesses will be competing for the custom.Vulnerable to market changeBecause the targeted market is so small, any small change could severely impact the revenue of the company.
Customers tend to be more loyalBecause you are tailoring your product or service to them specifically, customers will feel a closer bond.Risk of overdependence on a single marketTargeting a niche market means that a very small group of people will be customers, so the company will be a lot more dependant on a few individuals.

Mass Marketing

Higher salesLarger market, more people looking to buy, more salesCan be difficult to meet all customer demandsYou’re targeting a large market segment, meaning that you’re making a one size fits all solution.
Higher brand awarenessMore people are interested in the product, so more people will be aware of itHigher advertising costsMore people need to see the advert because the market is larger, which means more money will need to be spent
More potential customersA larger than niche market, so more people might want to buy the product.More competitionThe market is bigger, and as there is more money to be made there will be more people trying to make money in the market.
Cost efficientEconomies of scale can be used so unit costs can be reduced.Less attractive to consumersNot focused on their needs specifically, so niche markets will be more likely to capture their interest if they exist for that customer.