Explain Mass Marketing, Product Differentiated Marketing and Target Marketing?

1) Mass Marketing involves targeting all the buyers in the market using same marketing mix to influence buying. The organisations believe that the buyers will exhibit same buying behaviour for their product and marketing program (marketing mix, 4P’s). This strategy is more likely followed in new markets than in mature markets where competition exists. In these markets, the buyers have not developed any variation in needs and wants.

Mass market strategy is cost effective as market research doesn’t involves understanding various potential customers. The organisation implements the same marketing mix and product development strategies for the market. This leads to attractive profits by taking advantage of economies of scale. There is no special attention to specific needs of the buyers.

Its features –
• Mass Production
• Mass distribution
• Mass promoting the same product to all customers.

For example, a multiplex can operate in a new town where competition is less. It will fulfil the entertainment need of college students, working people, old and children alike. Similar is the case for organisations offering Holiday packages. In the early 80’s there were not many choices of cars in India. People just wanted a car. There were only 2 to 3 brands available in the Indian market, and the basic need was transportation.

2) Product Differentiated Marketing – The organisations acknowledge different needs and produce variety of products for the customers to make a choice as needed.

Its features –
• Variety of products made available in the market
• Emphasis not on tailor made product meeting the customers need
• Mass distribution and promotion activities followed
• Low cost on market research and product development activity
• Practised where competition is less and customer has experience of the products

3) Market Segmentation involves directing and implementing the marketing plan towards a group of buyers with similar buying characteristics in order to achieve organisations objectives.
It is selecting a group of people to sell the products according to their needs.
The Mass market strategy doesn’t always works. Here the differences in the needs of the buyers are researched and a corresponding product is offered to such buyers. The fact remains that an organisation cannot serve all the needs of the market. Hence, the organisations go for segmentation strategy.

It features –
• Identifying market segments
• Selecting one or more of them
• Developing products and marketing program tailored to each target market

For example, liberalisation in Indian economy resulted in foreign players in the auto sector. Where only 2-3 brands of cars were available, now the auto makers started targeting markets with cars needed for transportation, and also cars with luxurious models. Segmentation groups together buyers with similar needs and wants. The marketers identify these needs and decide which markets to target basis the organisations mission and capabilities. Then a product is developed and a corresponding marketing program is developed for the selected target market.

Organisations can have one or more target markets within a market. Each target market is offered a different marketing program. This strategy is referred to as Multiple Segmentation Strategy.
For example, a computer manufacturer offers different laptops, PC’s basis the needs of students, gamers, professionals, etc. Similarly, Samsung has different cell phone offerings for customers with basic calling needs and customers with smartphone requirements. Apple has mostly offered the same iPhone model for all its markets. Lately it has moved to making phablets (large sized smart phones) to address those market needs. Maruti Suzuki has cars for different income and lifestyle segments. WagonR, DeZire are targeted to middle class segments whereas Alto and A-star is to target lower middle calls market.