Mass Marketing Theory.

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A mass marketing strategy means ignoring differences between market segments, offering a single product for the entire market and promoting it with a single communication strategy. Because a company applying the concept of mass marketing rejects any form of product differentiation, we call this strategy “undifferentiated” marketing.As part of this strategy, the company develops a unified marketing programme to appeal to all consumers simultaneously; it creates a universal offer for all consumers in the market, focusing the product on consumers’ general needs and requirements, and uses mass media and mass distribution of goods.

The reasons for non-differentiation.There are three obvious and powerful reasons why a company chooses a mass marketing approach to promoting its product: first, the company seeks to cover the entire market and take a leading position in the industry; second, the company incurs high costs in producing differentiated goods and seeks to reduce unit costs by standardising packaging, raw materials, etc.; and third, the consumer market lacks the knowledge and experience to consider differences within and between products and has a standard set of requirements for the product.

The concept of mass marketing is used by companies producing consumer goods (toothpaste, soap, toilet paper, basic foodstuffs, etc.)

Features of implementing the strategy.Mass marketing does not mean “bad” or “ineffective” marketing; it follows different laws and has clear conditions for implementation. A company using a mass marketing strategy must be guided by clear principles to achieve high efficiency and success.

Features of implementing the strategy.Mass marketing does not mean “bad” or “ineffective” marketing; it follows different laws and has clear conditions for implementation. A company using a mass marketing strategy must be guided by clear principles to achieve high efficiency and success.

Principle One: Coverage.The company should strive for maximum coverage of the market and of all existing distribution channels in the industry. The advertising message should be aimed at the largest possible group of the population. It is recommended to use only communication channels with high reach and the lowest cost per contact. The company should not try to seize and maintain leadership in all market niches.

Principle Two: Concentration on basic needs.A company using a mass marketing strategy should work only with a homogeneous, unified product that can be produced in large quantities. This is a standardised product with a set of “must-have” characteristics that every consumer in the market needs. The strategy of mass marketing does not aim to create the perfect product for every consumer; rather, it creates an ideal standardised product.

Principle Three: Readiness for high costs.The strategy of mass marketing is based on full market coverage, so everyone needs to be talking about the product, which means investing in mass communication and in developing mass distribution. Mass communication means a low cost per contact, but because of high reach and a large number of contacts, investing in mass promotion is the most expensive method of promoting a product on the market.

Principle Four: Focus. Using the mass marketing approach, you do not have to compete with niche products. A mass marketing strategy cannot withstand small companies that focus on serving market niches and narrow consumer groups. Such companies will always exist and lead in small segments because they fully satisfy their target audience.

Principle Five: Unification.When implementing a mass marketing strategy, it is necessary to strictly follow the approach of maximum standardisation of packaging, raw materials and other business costs. There will always be a desire for diversity and for pursuing new trends, but these impulses must always be subordinate to the main goal: producing a standard product for the entire market at low cost.Examples of using mass marketing strategies.The most prominent examples of companies using mass marketing strategies are Coca-Cola, McDonald’s, Mars and Colgate.For example, Coca-Cola and Pepsi. Pepsi focuses on the youth segment of the market and uses bright, narrowly targeted images to promote its product. Coca-Cola aims to reach a wider audience – whole families – and all its brand communication is built on common global values.

MASS MARKETING IS MOST EFFECTIVE WITH:

– A low level of intra-industry competition;– Low product differentiation in the market;– Consumers with a limited, narrow set of basic needs;– High price sensitivity of demand (price is the only buying criterion);– A small number of distribution and promotion channels;– Economies of scale (as production volumes increase).