Instead of the expense of a high volume, scattered effect that mass marketing can often generate, targeted marketing allows you to clearly define your unique value to your target audience a more personal and effective way.
Mass market means you want to service or sell to a large group or audience while target market means you are selling to a small group of audience who are interested in your products or services.
What is it the difference between segmented marketing and mass marketing ? Mass marketing for everyone, but segmented make you go to the specialized. Mass marketing : To market your product to all customers without any change like: Chipsy or Pepsi, it can be more effective with products that all people would buy.
Niche marketing is therefore more effective at reaching new audiences with new products. You have more time to develop trust and a greater ability to entice customers to take a risk. Once you’ve reached the ‘established’ phase in a product life cycle, then mass marketing can be more effective.
Examples of mass – market retailers include big-box stores such as Target, Sam’s Club, and Best Buy, as well as brands like Levi Strauss and Gap, and e-retailers like Amazon. Supermarket, drugstore, mass merchandise, and warehouse chains are all considered mass – market retailers.
The major disadvantage of using mass marketing is that it puts all of your eggs in one basket. Although mass marketing can be hugely successful for large companies, changes in the market can and often do happen and can leave smaller to mid-size companies vulnerable to the effects.
Mass marketing is a market strategy in which a firm decides to ignore market segment differences and appeal the whole market with one offer or one strategy, which supports the idea of broadcasting a message that will reach the largest number of people possible.
Targeted marketing is far more cost- effective than mass marketing as firms are not wasting time and money marketing to people who will never be a customer. Instead, the target audience is specific consumers who are most likely to become customers.
A niche market is a segment of a larger market that can be defined by its own unique needs, preferences, or identity that makes it different from the market at large. For example, within the market for women’s shoes are many different segments or niches .
Most organizations utilise the mass media to persuade and reach a wide audience who have different needs but will buy the same 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.
Mass marketing is most effective when used to advertise products that are considered necessities, products that a large number of people are already guaranteed to be shopping for anyway.
Product variety is the number of variants in a family of products with similar characteristics, usually referred to as brands or models of the product . The number of different varieties offered in the market is a small subset of the set of all possible varieties.
A niche market is a segment of a larger market that can be defined by its own unique needs, preferences, or identity that makes it different from the market at large. Shoes for vegan women would be a niche market , as would shoes for plus-sized women, shoes for nurses, and shoes for transgendered people.
The main disadvantages of marketing to a niche include: Lack of “economies of scale” (these are lower unit costs that arise from operating at high production volumes) Risk of over dependence on a single product or market . Likely to attract competition if successful. Vulnerable to market changes – all “eggs in one basket”
For example, the four types of segmentation are Demographic , Psychographic Geographic , and Behavioral. These are common examples of how businesses can segment their market by gender, age , lifestyle etc.