Mass marketing is a market strategy in which firm or industry treat market with single offer or one strategy. In this marketing term wide range of customers and audience are concentrated. As there is no segmentation and focusing concern so large amount of customers are possibly exposed to the product. For example as audience is focused on radio, television and newspapers in which large and broad audience are targeted by the companies and industries towards their product. Mass marketing is the opposite of segmented marketing as it focuses on high sales and low prices. Mass marketing aims is to provide services and products that will appeal to the whole market. Segmented marketing targeted a specific or particular segment of the market for example specialized services or goods with few or no competitors. WEAKNESSES OF MASS MARKETING AS OPPOSED TO SEGMENT MARKETING:- Mass marketing focus to produce one type of goods and services to consumers, it is possible to reduce the level of risk involved in implementing this marketing term by market research although there is always a danger that demand for the product may fall. To determine any risks that may occur, a business must continuously examine the life cycle of their products and to analyze their product portfolios, this should ensure that the business goods continue to satisfy the market. * The high cost of fixed capital costs that are incurred may prevent many businesses from operating a market. * Developing a product that would appeal to a mass market is difficult as it must appeal to all customers. Appealing to individual customers would be very challenging for the business. * Businesses in mass marketing can be defenseless to fluctuations in demand. A decrease in demand would lead to unused spare capacity that would effectively increase the unit cost per product. SEGMENTATION:-
Market segmentation is the concept in which markets certain group or people are targeted and focused. Researcher has shown that racial similarity, role congruence, labeling intensity of ethnic identification, shared knowledge and ethnic salience all promote positive effects on the targeted market. In market segmented we have seen that their customers and consumers are loyal and strongly affinity to the particular brand or product. As in market segmenting the market is divided into individual markets with similar wants and needs as on the products consumption. Broadly markets can be divided according to a number of general criteria, such as by industry or public versus private. Although there is difference in industrial and consumer market segmentation but both of them have similar objectives. Why segmentation?
One of the main reasons for using market segmentation is to help companies to better understand the needs of a specific customer base. Mass marketing assumes that all customers are the same and will respond to the same advertising. By looking at ways in which potential customer groups are different from each other, the marketing message can be better targeted to the needs and wants of those people. Often. Dividing consumers by clearly defined criteria will help the company identify other applications for their products that may not have been obvious before. These revelations often help the company target a larger audience in that same demographic classification, improving market share among a specific base. Segmenting the market can also serve to identify smaller groups of people who make up their own, previously unknown subsets. SEGMENTATION OR SINGLE ENTITY MARKET:-
Segmentation is much more valuable market strategy as compare to the market as a single unit because it’s much more hard and difficult to focus and know about the demands and needs of, customers and consumers if...