Mass marketing is dedicated to a wide audience and personalized marketing is targeted to a specific group or an interested consumer. Which marketing strategy is the best?
Mass marketing aims at delivering messages to the largest number of people that is possible. It ignores the market segment differences and provides one offer to the whole market. Reaching a wide audience maximizes the product’s exposure. Mass marketing is focused on high sales and low prices. It’s used by companies that offer products that usually aren’t dedicated for one client and are sold in large quantities.
The main benefits of mass marketing are a broad audience and low production costs per each person. Although, this strategy has serious disadvantages such as high advertising costs and high development costs of products, a fierce competition and ignoring the particular needs of clients.
In opposition to mass marketing, personalized marketing analyzes the specific needs of each individual and reaches the target group by providing tailored offers of products and services.
Personalized marketing comprises the customers identification (collecting information about their interests and needs), segmenting clients into more specific groups, choosing the best communication channel to contact with them and personalizing products or services in order to give them exactly what they want.
One-to-one (personalized) marketing is distinguished by several advantages such as particularly targeted customers that tend to be more loyal, less competition and higher profit margins. The main drawbacks are the lack of “economies of scale” and higher production costs per each person.
People face over 3000 messages a day, what means that it is crucial to make messages relevant to customers by reaching their preferences and characteristics. Now, when personalized marketing is expanding to more and more sectors, it’s starting to be a strong competitor of mass marketing.
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