Niche marketing has recently become a trend as a result of severe competition in mature markets. Standardized mass production and trying to sell the same product to masses of consumers seems to become less profitable in these mature markets. Most managers were taught that mass production and mass marketing were the most advanced and efficient methods to produce and market products.

In today’s competitive world there still is a strategic debate about the desirability of mass marketing, focusing on standardization, or niche marketing, focusing on customization or tailored products for niche markets.

Although there can be benefits to mass marketing it may be argued that niche marketing is more equipped to deal with the existing and rapid changing minimarkets. Three arguments in favor of the mass marketing strategy are Economic advantages can be gained through economies of scale and experience curve effects.

Strategic price mechanism

Competitive- if the economic and strategic argument has been achieved, the company can be competitive, through offering the “best” product at the “best” possible price. In mass-marketing, a company attempts to reach buyers with one product with one marketing mix. An economic argument in favor of niche marketing is “greater profits”. This implies that the nichers achieve high margin while the mass marketers achieve high volumes.

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