1. Mass Marketing
Up to 1 990s, many companies practiced mass marketing and not target marketing. Most consumer products companies practiced mass marketing (“one-size-fits-all” marketing). That is, mass production, mass distribution, and mass promotion of the products. For example, Henry Ford widely used this strategy when he offered the model T Ford to all buyers. Similarly, Coca- Cola at one time produced only one drink for the whole market, hoping it would appeal to everyone.
This is using the same marketing program to target the whole population (“Shot-gun” approach or undifferentiated marketing). However, in mass marketing, the seller engages in mass production, distribution and promotion for one product for all the buyers.
The main argument for mass marketing is that it creates the largest potential market, winch leads to the lowest costs, which in tern translate into either lower prices or higher margins. However, many factors have now made mass marketing difficult due to changing preferences and tastes, technological, consumption patterns and advertising appeals among others. Therefore, most companies are now moving away from mass marketing to market segmentation and target marketing
2. Segment Marketing
The marketer isolates broad segments that make up a market and adapting the marketing strategy to match the needs of one or more segments. Therefore, segment marketing consists of a large identifiable group within a market. A company that practices this type of marketing recognizes that, buyers differ in their wants, buying attitudes, purchasing power and many other characteristics.
Here, the seller distinguishes major market segments, targets one or more and develops products and programmes tailored towards each segment. That is, firms are focusing on the buyers who have greater interest in the values they create best (“Rifle” approach or differentiated marketing).
3. Niche Marketing
A marketer focuses on sub-segments or niches with distinctive traits that may seek a special combination of benefits, Therefore, a niche is a more narrowly defined group, typically a small market whose needs have not been well served.
Niche marketing, can be carried out by dividing segments into sub-segments, or defining a group with a distinctive set of wants, who may seek special attributes of a product, for example, heavy smokers segment consisting of heavy smokers, who are overweight.
Niches are normally small markets, which attract one or a few competitors. Most of the time, they attract smaller companies, and niche marketers understand their niches so well that their customers are always willing to pay a higher price (premium). Niching offers smaller companies an opportunity to compete by focusing their limited resources on serving niches that may be unimportant to or overlooked by larger competitors. In many markets niching is the norm.
4. Micro-Marketing
This is tailoring products and marketing programs to suit the tastes of specific individuals and locations. This includes;
- Local marketing
- Individual marketing
Titany answered the question on October 6, 2021 at 10:42