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Mass marketing
Mass Marketing is a type of marketing (or attempting to sell through
persuasion) of a product to a wide audience. The idea is to broadcast a
message that will reach the largest number of people possible. Traditionally
mass marketing has focused on radio, television and newspapers as the
medium used to reach this broad audience.
Background
Mass marketing or indifferent marketing has its origins in the 1920s with the
inception of mass radio use. This gave corporations an opportunity to appeal
to a wide variety of potential customers. Due to this, variety marketing had
to be changed in order to persuade a wide audience with different needs into
buying the same thing. It has developed over the years into a world-wide
multi-billion dollar industry. Although sagging in the Great Depression it
regained popularity and continued to expand through the 40s and 50s. It
slowed during the anti-capitalist movements of the 60's and 70's before
coming back stronger than before in the 80's, 90's and today. These trends are
due to corresponding upswings in mass media, the parent of mass marketing.
For most of the twentieth century, major consumer-products companies held
fast to mass marketing- mass producing, mass distributing and mass
promoting about the same product in about the same way to all consumers.
Mass marketing creates the largest potential market, which leads to the
lowest costs.
The Evolution Into Mass Marketing
Between 1880 and 1890, several things occurred that eliminated the barriers
and enhanced the appeal of mass marketing. Both the railroad and telegraph
systems were completed, thus providing the potential for nationwide
distribution and communication. Mass-production techniques and equipment
were refined and adapted to a variety of products. Additionally, the
population was growing rapidly, the country was recovering from the Civil
War, and the largest depression in U.S. history until that time was ending.
Two of the most widely recognized examples are Ford and Coca-Cola. Henry
Ford applied the concept in the automobile industry. His Model T was
conceived and marketed as a "universal" car—one that would meet the needs
of all buyers. By adopting mass-production techniques and eliminating
optional features, he was able to reduce costs and sell his product at an
affordable price. The combination catapulted the Model T to the top of the
market. As a Candler was equally successful at using mass marketing in the
softdrink industry. Like Ford, he also viewed his product as being the only
one that consumers needed. His initial mass-marketing efforts focused on an
extensive national advertising campaign. As product recognition grew, he
established a network of bottling operations throughout the county to
facilitate sales and distribution. No product in history has matched Coca-
Cola's total sales.
Other mass marketers of this era achieved success by focusing on one aspect
of the approach. Manufacturers such as Quaker Oats, Proctor and Gamble,
and Eastman Kodak used refined mass-production techniques to establish
consistent product quality. Still other manufacturers, such as Singer Sewing
Machine, developed integrated distribution systems to ensure reliable
delivery to the market. In general merchandise retailing, Sears and
Montgomery Ward developed a mass-marketing niche through mail order.
Grocery retailer A&P, on the other hand, established its mass market through
private branding and systematic operation of multiple stores.
Mass marketers continued their domination in major industries well into the
1960s. Many of them maintained essentially the same mix, while others
expanded their use of the strategy. Sears and Montgomery Ward, for
example, added store retailing in the 1920s. In the 1930s, supermarkets
appeared with a different emphasis than previous grocery retailers—national
brands. Over the next several decades, large discount stores came into
prominence with a format similar to the supermarkets.
The Evolution from Mass Marketing
One-to-one marketing
One-to-one marketing (sometimes expressed as 1:1 marketing) is a customer
relationship management (CRM) strategy emphasizing personalized
interactions with customers. The one-to-one marketing of interactions is
thought to foster greater customer loyalty and better return on marketing
investment. The concept of one-to-one marketing as a CRM approach was
advanced by Don Peppers Only the term is new; the approach is almost as
old as commerce itself. In the past, for example, proprietors of a general
store would naturally take a one-to-one approach, remembering details about
each customer's preferences and characteristics and using that knowledge to
provide better service. One-to-one marketing seeks to reinvest marketing
with the personal touch absent from many modern business interactions.
If the advertisement asks the prospect to take a specific action, for instance
call a free phone number or visit a website, then the effort is considered to be
direct response advertising.
• One-to-one marketing is treating different customers in different ways.
This focus demands meticulous knowledge of the customer, based on
his or her value and potential lifespan in the heart of the company.
• One-to-one marketing is a very fashionable term in the marketing
world, but to apply it is a complex thing, since it demands a previous
capacity for segmentation and very refined profiling.
• One-to-one marketing strategies are directly related to Marketing One-
to-One theories, which entail an entire organizational shift towards the
customer, instead of the product.
• The four basic pillars on which One-to-One Marketing rests are:
identify high-value customers, differentiate proposals for different
customers, interact with the customer, and customize the business
culture.
• Not all one-to-one marketing strategies are profitable: every company
must predict the return on investment in this type of strategy, before
they go into it.
• We should not offer excessively personalized products and services.
“A la carte” Marketing must satisfy the customer’s need to be
individualized; in no case should that be confused with an excess of
proposals.
• It’s not the customer who must define him or herself to the provider,
personalizing their demands. It is the obligation of the provider to
know these needs and anticipate them.
“Treating different customers in different ways”. This is the premise
underlying One-to-One Marketing, a new concept of sales and
marketing management, whose philosophy puts the customer at the
center of the company. Derived from One-to-One Marketing theories,
one-to-one marketing strategies and Individualized Marketing opt for
exhaustive knowledge of the customer and his or her needs, in order
to provide them with what they need, when they need it, and
differentiate them clearly from the rest of customers. However, One-
to-One Marketing techniques have limitations, which can only be
overcome by an accurate Customer Intelligence strategy.
However, for several years now, the term “one-to-one marketing” has
proliferated to the point of being applied to almost any marketing action,
from a mere letter to a customer with their name and surname, to setting up a
mobile phone or PC screen according to the consumer’s taste. Today, “One-
to-one marketing” is a word on the minds of the majority of marketing and
sales experts, but which translates into true results on only a few occasions.
Several years ago, Don Peppers and Martha Rogers revolutionized the world
of marketing when they coined the phrase “One-to-One”, which calls for
differentiated strategies for differentiated customers, within the framework of
an entire organizational shift towards the customer. Since then, “one-to-one
marketing”, “One-to-One” , and “Individualized Marketing” are expressions
that have invaded marketing plan presentations, obsessed directors in this
area, and appeared in thousands of articles; but in practice, they are efficient
in very few cases.
One-to-one marketing is not only being able to call someone by their first
and last names from a “contact center”. One-to-one marketing is not only
running a direct marketing campaign that identifies its target audience one by
one. One-to-one marketing is about refining segmentation strategies until we
obtain very specific individual or company profiles, with similar
characteristics, but also with a similar value and potential lifespan for the
company, and apply marketing and sales actions with them accordingly.
• Through what channel and in what way can we optimize our contact
with the customer?
• What customer needs are we able to anticipate?
• How can we measure this interaction with the customer?
• Can we transform our monologues at the customer into dialogues with
the customer?
• How does the customer knowledge we have benefit the customers?
Asking this barrage of questions is a duty and a necessity for any company
that wishes to bury the orientation towards the product once and for all, and
opt for sales growth based on dialogue with and exhaustive knowledge of the
customer.
Identify the
One-to-one
Company’s Identify Differentiate Interact
marketing
Situation
The company
The company looks to Massive
Constant
1-to-1 “possesses” improve One-to-one
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each customer
preferences customer’s for each individual
needs
Customers
Two-way The segment
The company are
Focused on the Interactions, obtains
identifies the differentiated
customer increasingly customized
customers by value and
coordinated. options
needs
Attentive to Product Customers Unconnected The segment
are only
lines interactions,
differentiated obtains the
customer identify the many only
by same result
customers one-way
their value
Product
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follow-up, Products, not
towards the contact with for everyone
not customer customers
product customers
follow-up
Resource: http://www.bitpipe.com/tlist/Direct-Marketing.html
http://managementpedia.com/index.php?title=Marketing