MASS MARKETING VS ONE TO ONE MARKETING

Ø  MASS MARKETING VS
ONE TO ONE MARKETING

Ø  CONCEPTUAL SERIES FOR COMPETITIVE EXAM

Ø  MARKETING

• CONTENTS:

1.        MEANING OF MASS MARKETING AND ITS FEATURES

2.        MEANING OF ONE TO ONE MARKETING,FEATURES

3.        DIFFERENCE

Ø  MEANING OF MASS MARKETING

•    MASS MARKETING IS A MARKET STRATEGY IN WHICH A FIRM DECIDES TO IGNORE MARKET SEGMENT DIFFERENCES AND APPEAL THE WHOLE MARKET WITH ONE OFFER OR ONE STRATEGY. TRADITIONALLY MASS MARKETING HAS FOCUSED ON RADIO,TELEVISION AND NEWSPAPERS AS THE MEDIA USED TO REACH THE BROAD AUDIENCE.

•    MASS MARKETING IS USED WHEN THE PRODUCT COMPLETES THE NEED OF THE CUSTOMER. THEY DO NOT MEET THE DEMANDS OR WANTS OF  A CUSTOMER

Ø  FEATURES OF MASS MARKETING

1.       TARGETED AT LARGE AUDIENCE

2.       MASS MEDIA AND MESSAGE IS ALSO SAME

3.       THE OBJECTIVE IS OF SHOT GUN APPROACH HIT AS AS MANY PEOPLE AS YOU CAN

4.       USED FOR BRAND BUILDING AND BRAND RECALL EFFORTS OR TO INTRODUCE A NEW OFFER

5.       THE OBJECTIVE OF THE MASS MARKETING IS TO OPTIMIZE SALES AND REACH THE CUSTOMER OR MAKE THE CUSTOMER AWARE ABOUT THE BRAND.

·         EXAMPLE OF MASS MARKETING
FOR MANY YEARS COCA COLA MEANT ONLY ONE THING TO CONSUMER. IT WAS A PATENTED SOFT DRINK AVAILABLE IN SINGLE FLAVOR.

•    MASS MARKETING IS USED BY TELECOMMUNICATION COMPANIES,SOAPS AND DETERGENTS ETC

Ø  LIMITATIONS OF MASS MARKETING

1.       GROWTH OF COMPETITION

2.       MORE PROFITS BY TARGET SEGMENTS

3.       BETTER ROI WITH DIFFERENTIATED STRATEGY

Ø  ONE TO ONE MARKETING

·         PERSONALIZED MARKETING

·         OR INDIVIDUAL MARKETING

•    THE ONE TO ONE MARKETING AS A CRM APPROACH WAS ADVANCED BY DON PEPPERS AND MARTHA ROGERS IN THEIR BOOK IN 1994 THE ONE TO ONE FUTURE.

•    ONE TO ONE MARKETING (1:1) IS A STRATEGY THAT RELIES ON GETTING TO KNOW THE INDIVIDUAL CHOICES MADE BY A CUSTOMER AND THEN TAILORING MARKETING OUTREACH TO EACH CUSTOMER DIFFERENTLY BASED ON THOSE CHOICES.

•    IT IS AN APPROACH THAT IS NOT USED TO GET THE CUSTOMER’S ATTENTION BUT TO KEEP THEIR ATTENTION AND THEIR BUSINESS.

Ø  BASIC TYPES OF ONE TO ONE MARKETING

1.       PERSONALIZATION:- HERE THE MARKETING PLAN IS CUSTOMIZED ACCORDING TO CUSTOMER’S PERSONAL PREFERENCES AND TASTE OF THE EACH CUSTOMER. AMAZON.COM USES IT.

2.       CUSTOMIZATION:-HERE THE COMPANY DOES NOT LEARN THE PREFERENCES OF EACH CUSTOMERS BUT GIVES THE INDIVIDUAL CUSTOMER THE ABILITY TO CUSTOMIZE THE PRODUCT ACCORDING TO THEIR CHOICE.  EXAMPLES OF COMPUTER RETAILER WHO GIVES CHOICES TO CUSTOMERS TO CUSTOMIZE THE LAPTOP ACCORDING TO THEIR REQUIREMENT.

·         DELL WAS A REVOLUTIONARY COMPANY IN TERMS OF ONE TO ONE MARKETING.

·         HARLEY DAVIDSON MOTOR CYCLE IS DIFFERENT BECAUSE IT CAN BE CUSTOMIZED AS THE CUSTOMER WANTS.

•    MERITS OF ONE TO ONE MARKETING

1.       BUILD CUSTOMER BASE

2.       GENERATE REFERRAL BUSINESS

3.       RETAIN THE OLD CUSTOMER

4.       IMPROVE CUSTOMER LOYALTY BY LOYALTY PROGRAMS

5.       CAN BE USED FRO SALES PROMOTIONS OR BRAND RECALL

6.       AVOIDING OF BRAND SWITCHING

•    DIFFERENCE BETWEEN MASS MARKETING AMD ONE TO ONE MARKETING

•    MASS MARKETING

1.       FIRM TRIES TO SATISFY ENTIRE MARKET

2.       NO SEGMENTATION

3.       UNIFORM PRODUCT OFFER

•    ONE TO ONE MARKETING

1.       CUSTOMIZED SOLUTIONS

2.       TREATS INDIVIDUAL CUSTOMERS SEPARABLY WITH DIFFERENT OFFERS

3.       MODERN CUSTOMER RELATION MANAGEMENT PRACTICE

4.       DIFFERENCE BETWEEN MASS MARKETING AMD ONE TO ONE MARKETING

•    MASS MARKETING

1.       TARGETS THE AVERAGE CUSTOMER

2.       AVERAGE CUSTOMER CAN BE SATISFIED WITH GENERIC PRODUCT

3.       TREATS THEIR CUSTOMER BASED ON GENERAL BASIS

4.       DO NOT TRY TO UNDERSTAND THE CUSTOMER

5.       FOCUS IS ONLY ON SALES RECORD AND REVENUE EARN

6.       MASS PRODUCTION,MASS ADVERTISING AND MASS DISTRIBUTION

7.       COMMUNICATION IS THE ONE WAY

8.       NO ACCEPTANCE OF FEEDBACK OR SUGGESTION

9.       FOCUSES ON PRODUCING AS MUCH AS POSSIBLE

•     

Ø  ONE TO ONE MARKETING

1.       IDENTIFIES CUSTOMER NEEDS BASED ON INDIVIDUAL BASIS AND OFFER CUSTOMIZED SOLUTIONS

2.       TREATS CUSTOMER ON PROFILE BASIS( TRACK RECORD IS SAVED IN THE DATA BASE)

3.       OFFER STANDARDIZED SOLUTIONS FOR EACH CUSTOMER BY ANALYZING THEIR NEEDS SEPARATELY

4.       DIFFERENCE BETWEEN MASS MARKETING AMD ONE TO ONE MARKETING

5.       FOCUSES ON CUSTOMIZED PRODUCTION AND CUSTOMIZED DISTRIBUTION

6.       PERSONAL SELLING AND DIRECT MARKETING

7.       COMMUNICATION IS INTERACTIVE

8.       MARKETER AND CUSTOMER EFFECTIVELY INVOLVE IN NEGOTIATION PROCESS

9.       SPECIALIZING IN A PARTICULAR AREA AND ACHIEVING ECONOMIES OF SCOPE