MASS

MARKETING
MKT 201
LEARNING OUTCOMES

• Concept about mass marketing

• Advantages and disadvantages of of mass marketing

 MASS MARKETING
• Mass marketing is efforts to promote and sell products by targeting the mass market.

• The mass market is a market where many customers exist in a market with common needs.

• Companies view consumers in the market as having homogeneous needs and wants.

• To sell a product, they only have one marketing strategy. They sell the same product at the

same price using the same promotion and distribution system for everyone.
H OW COM PANIES DO M ASS M AR KETING

• Market homogenization. Companies ignore segmentation. They

perceive the market as homogeneous. They do not think it is crucial

to specifically handle and adapt products according to consumers’

tastes and preferences in each segment.

Production: In developing mass marketing, companies are usually

production oriented. They use rifle marketing tactics to reach as many

consumers as possible instead of more precisely targeted marketing. That

way, the company can achieve more sales volume to support higher

economies of scale.

Higher economies of scale reduce unit costs. Finally, they can lower the

selling price compared to competitors to attract more demand.

• Single marketing mix: Companies standardize products, prices,

promotions, and distribution channels. For example, to promote a

product, they rely on mass media channels, such as television, radio,

newspapers, and their combinations.

The company may also send out a large number of emails, hoping a

few people would buy. Such media to reach as many audiences as

possible, thereby maximizing exposure to the product.

 MEDIUM OF MASS MARKETING
• For a successful marketing campaign, the advertisement must be focused on “set
of product needs that are common to most consumers in a target
market.”(Bennett & Strydom,2001). Traditionally it focusses on

• Social Media

• Television / Radio

• Newspapers

• Magazines

• Email Marketing
 MASS MARKETING ADVANTAGES
• More potential customers. The company targets a large number of end consumers

because it ignores different market segments.

• Higher economies of scale. The high sales volume allows the company to enjoy higher

economies of scale. Therefore, they tend to enjoy significantly lower average

production costs.

• High sales. Because they serve in the same way, potential customers are equal to the

population in the market. Thus, the company is likely to enjoy a high volume of sales.
• Less prone to changing tastes: The company sells standard products and ignores

differences in tastes among consumers. Therefore, any change in a consumer’s

buying habits should not have a significant impact on sales.

• Save on marketing costs: The company uses a one-size-fits-all approach. For

example, they rely on the mass media to inform and persuade their audience to

buy.
 DISADVANTAGES
• Low adaptability. The company does not adapt products according to consumer tastes and special

requirements. Thus, for quality-conscious consumers, products are not attractive.

• Low-profit margins. Companies usually rely on low prices to attract as many customers as possible.

The product is not unique, so the market perceives it to be of low value. Economies of scale are one

of the solutions to improve low margins in the market.

• Low switching costs. Consumers have no other reason to be loyal to the product, except for price

reasons. Therefore, their loyalty tends to be low, which implies low switching costs. If the company

raises the price, the product is no longer attractive, and consumers will switch to competitor

products.
 DISADVANTAGES
• High competitive pressure. The mass market is likely to attract more players.

Standard products, low switching costs, and low loyalty make rivalry between

companies more intense.

• High entry barriers. Existing firms invest in expensive capital equipment and

efficient supply chains to support higher economies of scale. That increases the

entry requirements to the market, leaving potential players to spend large sums

of money.
QUESTION????