Mass marketing strategy attempts to reach as many people as possible to sell a product and involves production and selling of the same product to one and all. Targeted marketing strategy differentiates the marketing aspects such as price or offering to suit, a definite market need.
Wal-Mart the largest world retailer adheres to mass marketing strategy. Wal-Mart stocks a large variety of items in their stores ranging from clothing, toys, cleaning products among others. This attracts a large number of people of different ages, social carders, and personality types. Wal-Mart offers amazingly low prices for their products, which attracts majority population who are always on the lookout for low prices and best deals. To appeal the mass market, Wal-Mart has thousands of stores all over the world, and an online store where customers can purchase products anywhere in the world (Hoidas, 2012).
Gap Incorporate a clothing company has effectively mastered the target marketing strategy. Gap Inc. brands such as Gap, Old Navy, banana republic, Athleta and Piperlime.com are designed to appeal to the various target markets (Hoidas, 2012). Old Navy brand clothes are colorful and target price sensitive customers who want to remain fashionable. Gap brand clothes on the other hand have cool colors and appeal to price sensitive working class.
There are four Segmentation categories
Geographic segmentation- separates markets based on their geographical location. Separation allows for maximization of marketing mix such as promotion and sales channel.
Demographic segmentation- Separates the markets based on demographic indicators such as age, gender, and levels of income.
Psychographic segmentation- Separates markets by lifestyles and their values. For instance, Gap Inc Old Navy brand appeals to high school and college students while Gap is designed for those appealed to by Old Navy when younger but are now older and working.
Behavioral segmentation – differentiates the markets based on the shopping and buying behaviors. For example, determining whether buyers shop online, do research before purchase, plan to purchase or do impulse buying.
After a company settles on either mass or targeted marketing strategy, it is critical to choose an attractive market to maximize on sales volumes and increase profit margins. An attractive market the following characteristics
Should be sizeable to cover operating costs and be profitable
Should be growing
Should not be filled with competitors and if filled, a company product must be unique to the competitors’
Must be accessible. For instance, Wal-Mart reaches out to its market by having thousands of stores all over the world in addition to their internet stores.
The organization has the required resources to compete in the market.
Should conform with the company mission and objectives
Product positioning is the process marketers use to determine how best to front their products or services attributes to the target market in order to create an interest in them and push them to buy (Richards, 2016). Product positioning ensures that customer needs are well established through a specific definition of the target market. Appropriate messages that resonate with the niche market are designed and the most effective channels are used to reach the customer. Product positioning enables marketers to focus on ways of differentiating their product offering from the competitors. To be successful, products should have a prominent value proposition to the target market.
References
Hoidas, A. (2012). How Gap Inc. Excels at Niche Marketing (and How You Can, Too!).
Retrieved March 18, 2016, from https://www.qualitylogoproducts.com/blog/gap-incorporated-niche-marketing/
Richards, L. (2016). The Importance of Product Positioning to the Marketing Plan. Retrieved
March 18, 2016, from http://smallbusiness.chron.com/importance-product-positioning-marketing-plan-24275.html
