Key Idea: A business has to decide who it sells to and why they should choose it over a rival. This topic is choosing a market, standing out in it, and planning how to win it.
Which market
- Mass market: sell to most of the market, usually at low prices.
- Niche market: serve one small, specialised part of it.
- Lena's slow-risen bread serves a niche; Goldcrust sells to the mass market.
Standing out
- A USP is the feature no rival offers.
- Differentiate by quality, design, service, brand, price or place.
- A position map shows where each brand sits against its rivals.
Planning
- A marketing plan sets objectives, the target market, the mix, the budget and how to measure progress.
- It aligns the team and helps win finance.
- It dates quickly: review it against results.
The words to know
| Word | Means | Do not confuse with |
|---|---|---|
| Niche market | a small, specialised segment of a larger market | a small business: a large firm can serve a niche |
| Mass market | a large market where the same product is sold to most customers | the whole population |
| USP (unique selling point) | a feature that makes a product different from every rival's | any advantage a rival also has |
| Differentiation | making a business or product different from its competitors in ways customers value | cutting prices |
| Marketing plan | a document setting out marketing objectives and how they will be met | a sales forecast |
| Position map | a chart placing brands on two customer-relevant features, such as price and quality | a segmentation table |
Name the idea, then show it in the case: the niche, the USP, the gap on the map. To construct a position map: a title, two axes labelled at both ends, and every brand placed and named.
Exam-style question
Lena's Bakery Ltd bakes with flour milled in the valley by Valley Grain, slow-risen overnight at Mill Lane and on the shelves by seven. No other bakery in town does the same. Explain one advantage for Lena's Bakery Ltd of having a USP.
Model answer plan
See the mark-by-mark plan — for / against / judgement, with marking guidance — in study mode.
Important: 'Fresh bread' is not a USP if every bakery sells fresh bread. A USP must be something no competitor offers. On a position map, label both ends of each axis, or the map shows nothing.
Tap each card to check yourself.
Niche or mass: gluten-free celebration cakes? Niche. A small, specialised group of customers.
One disadvantage of a niche market? It is small, so sales are limited and a change in that group's tastes can hit the business hard.
Name three ways to differentiate. Any three: quality, design, customer service, brand, place, after-sales service.
What goes into a marketing plan? Objectives, the target market, the marketing mix, the budget, a timetable and how success will be measured.
A position map shows an empty corner. Is that an opportunity? Possibly, but check first: there may be no customers who want that mix of features.
Why review a marketing plan? Markets change: when Crumbline opened a kiosk at the station, Lena's targets had to move.
Exam tips
- A USP must be something no rival offers.
- Niche is small and specialised; mass is large and standardised.
- Construct a position map with a title, both axes labelled at both ends, and every brand named.
- A marketing plan is only useful if it is reviewed against results.
- Tie every point to the case: the niche, the USP, the rival.