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A mass marketing strategy is the neglect of differences between market segments, a unified product for the entire market, and the promotion of a product using a single communication strategy. Because applying the concept of mass marketing, the company refuses any form of differentiation of its product – we call this strategy “undifferentiated” marketing.
As part of this strategy, the company is developing a unified marketing program to appeal to all consumers simultaneously; forms a universal offer for all consumers of the market, concentrating in the product on the general needs and requirements of consumers; uses the media and mass distribution of goods.
The reasons for non-differentiation.
There are three obvious and powerful reasons the company chooses a mass marketing approach in promoting its product: first, the company seeks to cover the entire market and take a leading position in the industry; second, the company bears high costs in the production of differentiated goods and seeks to reduce costs per unit of production due to the unification of packaging, raw materials, etc.; and third, the consumer market does not have the knowledge and experience to consider differences in and between the product, it has a standard set of requirements for the product.
The concept of mass marketing used by companies producing consumer goods (toothpaste, soap, toilet paper, basic foodstuffs, etc.)
Features of implementing the strategy.
Mass marketing does not mean “bad” and “ineffective” marketing; it obeys other laws and has clear implementation conditions. Using a mass marketing strategy, clear principles must guide a company to achieve high efficiency and success.
Features of implementing the strategy.
Mass marketing does not mean “bad” and “ineffective” marketing; it obeys other laws and has clear implementation conditions. Using a mass marketing strategy, clear principles must guide a company to achieve high efficiency and success.
Principle One: Coverage.
The company should strive to maximize a covering of the market, all existing distribution channels in the industry. We should direct advertising message to the largest group of the population. It is recommended to use only communication channels with high coverage and the lowest cost of contact. The company should not try to seize and maintain leadership in all market niches.
Principle Two: Concentration on basic needs.
A company that uses a mass marketing strategy should work only with a homogeneous, unified product that can be produced in large quantities. This product is a standardized product with a set of “must have” characteristics necessary for each consumer market. The strategy of mass marketing does not aim to create the perfect product for every consumer; rather, it creates an ideal standardized product.
Principle Three: Readiness for high costs.
The strategy of mass marketing is based on the full coverage of the market, so everyone needs to talk about the product, and therefore we need to invest in the mass communication of the product and in the development of mass distribution. Mass communication means: low cost per contact, but because of high coverage and a large number of contacts, investing in mass product promotion is the most expensive method of product promotion on the market.
Principle Four: Focus.
Using the mass marketing approach, you do not have to compete with niche products. Mass marketing strategy cannot withstand small companies that focus on satisfying market niches and narrow consumer groups. Such companies will always exist and lead in small segments because of the complete satisfaction of their target audience.
Principle Five: Unification.
When implementing a mass marketing strategy, it is necessary to follow strictly the approach of maximum unification of packaging, raw materials and other business costs. There will always be a desire for diversity, for the realization of new trends, but these impulses must always stick with the main goal: the production of a standard product for the entire market at low cost.Examples of using mass marketing strategies.
The most prominent examples of using mass marketing strategies are companies: Coca-Cola, McDonald’s, Mars, Colgate.
For example, Coca-cola and Pepsi. They focus Pepsi on the youth segment of the market and uses bright image narrow images to promote the product. Coca-cola aims to get a wider audience: whole families, and all brand communication builds on common global values.
MASS MARKETING IS MOST EFFECTIVE IN:
– Low level of intra-industry competition;
– Low product differentiation in the market;
– The consumer has a limited narrow set of basic needs;
– High demand sensitivity to price (price is the only buying criteria);
– A small number of distribution channels and promotion;
– There is an economy of scale (with an increase in production volumes).
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