Development of Mass Markets

What are the factors key to the development of mass markets? As MP3 players take the mass market stage in their life cycle, it is important for manufacturers to note factors that contribute to the rise of mass markets.

Mass markets typically start to develop when -

• Technological progress makes a product easier to use and increases its value to the average customer
• Key complementary products are developed that do the same
• Companies find ways to reduce production costs allowing them to lower prices

The factors that affect Market growth rates of a product/service are -

• Relative advantage
• Compatibility
• Complexity
• Trialability
• Observability
• Availability of complementary products

Ref : Strategic Management; Hill & Jones; 6e