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QuestionExplain why Coca Cola is a mass market product
AnswerA mass market product is when a corporation, usually a monopolist, sells a product to a relatively large fraction of consumers (Ivanov 2009). To explain a mass market, it can simply be paralleled with niche market. A niche product is a product targeting only a specific section of a larger industry and market. Coke, Pepsi and General Motors are some of the examples of products which target a mass market. Most organizations utilise the mass media to persuade and reach a wide audience who have different needs but will buy the same product. With this in mind, below are some of the rationales explaining why Coca Cola is a mass product:
- When Coca Cola treats the overall population market as one large market, it will create a large pool of potential customers who are willing to buy the product.
- Subsequently, the large market potential will yield to a remarkable sales volume of the target brand (in this case Coke).
- Thus, the product will incur a cost reduction and this will be passed on to the customers. A reduction in prices causes a positive movement along the demand curve leading to increased sales for Coca Cola company.
- Furthermore, there will be few variations on the production, resulting in a longer and efficient product run.
ReferencesIvanov, M., (2009) Niche market or Mass market. Economic Letters, 105 (3), 217-220
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