Principles-of-Marketing
Chapter 5.1 Targeted Marketing versus Mass Marketing
Targeted Marketing Versus Mass Marketing
Targeted marketing focuses on specific segments of the market, tailoring products and messages to meet the unique needs of those groups.
In contrast, mass marketing aims to reach a broad audience with a single marketing strategy, often leading to a more generalized approach.
Target Market
organizations you decide to sell to
Targeted Marketing
also known as differentiated marketing
differentiate some aspects
offering
promotion
price
Mass Marketing
involves selling the same product
using same price
same promotion
popcorn approach
Automaker Henry Ford
emphasized the importance of standardization in production, which allowed for lower costs and increased accessibility for consumers.
Benefits of Segmenting and Targeting Markets
segmenting allows businesses to tailor their products and marketing strategies to specific groups of consumers, enhancing customer satisfaction and loyalty.
avoid head on competition
develop new offerings and expand profitable brands and products lines
remarket older, less-profitable products
identify early adopters
redistribute money and sales efforts to focus on your most profitable customers
retain at risk customers in danger of defecting to your competitors
Segmenting and Targeting a Firm’s Current Customers
attracting new customers is harder and more expensive than retaining customers
One-to-one marketing
when a company forms personal relationships with their targeted customer
Steps: One-to-One Marketing
Establish short-term metrics to evaluate the consequences of your efforts
Identify your customers
Differentiate among your customers
Interact with your customers, targeting your best ones
Customize your products and promotional messages to meet their needs