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Presented on 10/04/08
Mass Marketing
Maximum Market Share Mass marketing aims to reach as many people as possible QUANTITY
Example: Coca-Cola. Burger King. K-mart. Broadcast networks (ABC, CBS). TV is more mass than publications Network TV more mass than cable TV
1880-1890 commerce emerged 1920s Mass radio Usage 40s-50s-It Expanded after Great Depression 60s-70s-slowed in anti capitalist era Telegraph & Railroads development enhanced communication
Sources: Tedlow, /Richard S (1997) The beginning of mass marketing in America: George Eastman and photography as a case study journal of macro marketing fall 67-81 Gardner, Dana.(1998) E-Mail status is elevated as mass marketing tool InfoWorld June 1:84
coca-cola
Ford T Model
Kodak
Quaker Oats
Sears
Sources: Tedlow, /Richard S (1997) The beginning of mass marketing in America: George Eastman and photography as a case study journal of macro marketing fall 67-81 Gardner, Dana.(1998) E-Mail status is elevated as mass marketing tool InfoWorld June 1:84
Ford decided that he wanted to see every American family owing a Ford car
Producing a standardised product from standardised parts means Ford could reduce costs
Ford famously joked that you could have a Model T in any colour, so long as its black.
Source: Niche v Mass Marketing www.schoolportal.co.uk/GroupDownloadFile.asp
Mass Marketing
This involves a business aiming at whole markets rather than particular parts of them the idea is that they have a universal appeal
The company aims its products at young and old and is still the market leader today
The goal of mass marketing is to achieve market domination the ultimate prize being the creation of generic brands
Low costs
Which created
Increased sales
Low prices
(Using Your Library's Electronic Resources to Market Library Programs, Materials, and ServicesAugust 10, 2005 Eric Graham, Senior Library Consultant, SirsiDynix Inc.)
In
2003, P&G spent $4.4 billion, or 10.1% of sales, on advertising. In 1998, the last time its spending reached 10%, unit sales volume rose by nearly 4%. Today, P&G's unit growth rate is running closer to 9%. "You can draw the inference that they are spending smarter on advertising (Business Week, Cover Story, July 12,2004)
P&G shifting from Mass Marketing to millions of particular consumers. "You find the people. You are very focused on them," Stengel( P&G's global marketing officer) says. "You become relevant to them. (Business Week, Cover Story, July 12,2004)
only 10% of the 6,200 consumer magazines published today in the U.S. are generalinterest titles, down from 30% two decades ago. (Samir Husni, a journalism professor at the University of Mississippi)
Research shows that viewers watch 20% to 30% more television after getting a PVR, but use it to skip about 70% of ads. Today, only 4% of U.S. households are equipped with PVRs, but Starcom MediaVest predicts a surge to as much as 30% within three years
By
2002, the networks' average cost per thousand viewers, or CPM, had soared to $16.79 in prime time, compared with $1.96 in 1972, according to the Television Bureau of Advertising.
Readership
of daily newspapers fell to 55% of households in 2002, from a high of 81% in 1964
"All the research we're doing tells us that the driver of demand going forward is all about products that are 'right for me"
(Business Week, Cover Story, July 12,2004)
Before
Pharmaceutical products worked successful for last 30 years by using Mass Marketing
Resultant- Return on sales diminishing therefore relevant data being provided to the customers
Business Week, Cover Story, July 12,2004)
Beer Movie trailers Soft drinks Drug Specialty clothing Home products Fast food Cars (national) Pet-related Credit cards Mortgage financing Upcoming program
4.8% 11.6 21.6 32.3 33.4 41.6 45.1 52.8 55.5 62.7 74.1 75.3
31.9% 44.1 82.7 45.6 62.4 90.3 95.7 68.8 81.5 94.2 94.7 94.4
Survey of the 15 largest U.S. television markets, done in 2003 Data: CNW Marketing Research Inc. The McGraw-Hill Companies, Copyright 2004
attitudes
habits desires
The OFT1 estimates that scams such as bogus competitions, lotteries and pyramid schemes cost UK consumers at least 1bn a year
1. Office of fair Trading http://news.bbc.co.uk/1/hi/business/4669670.stm Last Updated: Wednesday, 1 February 2006, 15:48 GMT
Mistake No. 2.
Mistake No. 3.
(Andrew R. Thomas, College of Business Administration, Centre marketing is now direct marketing)
for Organizational Development, The University of Akron, Akron, Ohio, The end of mass marketing: or, why all successful
Understanding Customers
Who your customers are? What they want ? What Motivates them to buy? How does the potential customer normally buy similar products in store, on the web or door to door)? Who is the primary buyer and primary buyer influencer in the buying process husband, wife, children, project leader, secretary)? What kind of habits does my customer have?
(David, (available online)6 deadly small business marketing mistakes, p4-5)
Conclusion
Challenges And Threats
the right way to send the right message to the right person at the right time