Targetting for success

Move Away From Mass Marketing

Markets can be approached as follows:

1.  Mass (general or undifferentiated) Marketing

If everyone was alike in what they want from a product transaction, then mass marketing (also called undifferentiated marketing) would make sense.   Today’s marketing is moving towards a focus on smaller segments.  For example early motor vehicles such as the Ford Model T featured one model in one colour (black) with no options, whereas the modern car market caters for different needs through different models and many optional extras to customise a purchase.

Marketing theory today accepts that undifferentiated marketing (also called Commodity Marketing) is going to be less successful against targeted marketing.

In the past, due mostly to the needs for mass production, marketers focused on mass marketing.  That is everyone was treated as if they were the same and wanted exactly the same product.  Since there was little competition, it worked for a while.  Now with more competition, it doesn’t.  It’s that simple really.  Organisations might like to have a great big undifferentiated market where they don’t have to do as much, but it’s no longer realistic.

2.  Limited or broadly (partially differentiated) Segmented Marketing

Using very limited, general segmentation factors, such as broad demographic descriptors (e.g. 18 – 35 men and women).  This is still trying to get large numbers by trying to treat customers and prospective customers as a few large groups. (See sidebar comment on Demographics later in this section)

3.  Segmented (differentiated) markets

Dividing general markets into more well defined groups using categories like Situation, Benefits Sought, Behaviour, and Lifestyle)

4.  Niche (concentrated) markets

These are smaller, much more precisely defined sub-segments of a segmented market.  They consist of customers within a segment with very distinct commonalities among their members.  This is the current focus of marketing and requires a great deal of depth in defining segmetational profiles.

5.  Micro (highly concentrated) marketing.

Micro marketing is the practice of tailoring the value offering (marketing mix) to suit the tastes of specific individuals and locations. It includes local marketing and individual marketing.  Until recently the only limitation has been the technology to do it.  With better database technology and production ability, this is where marketing is heading.  For example modern motor insurance offers include a variety of areas where the customer can select from a number of options which can affect the final premium, such as increasing the ‘excess’ or limiting the number of possible drivers.


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