Mass Marketing or Segmentation Marketing?

Marketing a product or service that is designed, produced and sold as if all buyers were all the same is the typical mass-market philosophy. There is no recognition of the different demands, behaviors or attitudes of buyers, nor is there any attempt to differentiate the appeal of the appeal of the product or service among buyers. It vaguely aims at everyone with the same marketing mix and should lead to the lower costs and prices and create the largest potential market.

The major advantage of mass marketing is the cost savings it creates for production, promotion and distribution. The firm is dealing with a standardized product that appeals to everyone within the market for the product or service. Resources do not have to be expended on creating differentiation. Of course the big question is how long can you rely on mass appeal in an increasingly competitive market?

Long-term business success does not rely on cost minimization but profit maximization. Consumers are not all the same and are demanding products and services tailored to their individuality. Thus the notion of market segmentation and segmentation marketing becomes critical to competitive success. This means marketing in such a way so as to target specific markets and fulfill the needs or wants of them via differentiated products or services and differentiated marketing mixes.

The big advantage of segmentation marketing provided it was done properly, is increased profits and in some cases better achievement of organizational goals. Ultimately the form that can improve customer service through segmentation and target marketing can be a more effective competitor, which in turn enables the firm to achieve its organizational objective more effectively.

With the growth of technology and its integration into market research, companies are now getting an insight into the needs and wants of narrowly defined segments and in some cases, individuals. They can then ‘Micro-Market’ to these segments with products and services specifically targeted to their needs.

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Tags: Business, Buyers, Distribution, Mass Market, Mass Marketing, Micro-Market, Production, Promotion, Segmentation Marketing, Service, technology