Mass marketing engenders a number of disadvantages. Costs for advertising slots are exceptionally high, excluding many small companies, and large companies have to put aside excessive amounts of money for their marketing budget. The cost of distributing promotional literature can also be high, as it has to encompass a large geographical area. These large costs would be all well and good if mass marketing were effective and generated a high response rate. However the average response rate to a mass marketing promotion is only 0.1%. This is because if a consumer wants a slightly different product, a mass produced product will not meet their needs.
By 1960, the industrial era began to draw to an end and the information era began. This is an era where consumers "were becoming more sophisticated and demanding"8, and increasingly wearier of the media.
Tags: Disadvantages of mass marketing, What are the disadvantages of mass marketing, Advantages of mass marketing
[...] With obtaining individual products being made so easy, mass production and marketing of similar products is no longer attractive to consumers. Mass customization was another method that became popular at the same time as mass marketing. It is the customization and personalization of products and services for individual customers at a mass production price, taking advantage of all the latest advances in technology to keep prices as low as possible. Mass customization works by individualizing goods or services to satisfy a consumer's specific need and “attempts to give customers what they want, when and where they want it, at a cost comparable to that of mass-produced goods”9. [...]
[...] The marketing method that focuses on the smallest segments of all is micro marketing and is the complete opposite of mass marketing. It is “marketing so finely tuned, if applied properly, it will speak to customers almost individually”10. Micro marketing is beneficial to companies because it provides shorter sales cycles, mainly because prospective customers are already interested in the product as the segments is so defined and researched. Conclusion The emergence of these other more tailored marketing methods has led to mass marketing being used far less as a marketing tool. [...]
[...] Introduction Mass Marketing is a controversial topic within marketing that has invited debate over whether or not it still has a place in modern day advertising. Mass marketing by definition is “using almost the same product, promotion and distribution, for all consumers”1. Arguments fall into 3 categories. The first being that it does still exist and brings it's own unique benefits to a firm that other forms of marketing are not able to achieve on such a large scale. This group believes that it not the end of mass marketing per se, but simply the retailer-distributor taking over the customer relationship, replacing the advertising role of the branded packaged-goods manufacturer”2. [...]
[...] This particular method is often more effective than mass marketing because mass marketing is typecast as junk mail and so is often not read thoroughly, if at all, hence the low response rate. Target marketing also has the advantage of attracting a higher response rate to mass marketing as, as the name suggests, it is more targeted towards individuals within the market. Market segments in target marketing tend to be smaller than those in market segmentation. Niche marketing is where firms concentrate on selling to an even smaller market. [...]
[...] The advantages and disadvantages of Market Segmentation Market segmentation has overtaken mass marketing because it does not hold the disadvantages that mass marketing does, but holds many advantages. The advantages for business' are that it allows them to discover niche markets that would otherwise not have been found. These niche markets can sometimes provide them with a monopoly in that market, leading to increased profit due to a strengthened market position. Market segmentation benefits both large and small companies by making them use their resources more efficiently. [...]
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