Several approaches have evolved over time in treating with a market. Among these approaches mass marketing and product variety marketing does not practice segmentation, while target marketing and customized marketing is based on segmentation.
Non-segmented Marketing Approaches
Mass marketing
Mass marketing is adopted under production or selling concepts. It follows an undifferentiated approach in dealing with the market. Under mass marketing, the organization views the entire market as homogeneous in need and characteristics and adopts a policy of market aggregation. Under market aggregation, the same marketing mix is applied in the entire market. This approach is economical as it lowers the marketing costs of production, distribution and promotion. Many firms selling undifferentiated products such as food and staple items follow this approach.
Product-variety marketing
Another non-segment approach is product variety marketing. In this approach, the marketer may offer two or more product varieties to the market so that the buyers may have product options. This approach also does not recognize the fact that buyers have different needs and characteristics. The product variety is offered on the assumption that a buyer likes changes.
Segmented Marketing Approaches
Segmented Marketing Approaches
Target marketing
Target marketing approach is based on segmentation practice by all marketing oriented firms. Under this approach, customer groups or market segments having similar needs and characteristics are identified and appropriate marketing mixes are developed for each market segment. The organization does not try to meet the specific needs of individual buyer; rather its efforts are concentrated on meeting the general needs of the customer group. Target marketing is the most popular form of segmentation.
Customized marketing
Customized marketing is the ultimate form of segmentation and is also known as individual marketing. It is practiced by a very few organizations as it is very costly to adopt. Under this approach, each individual is recognized to have distinct needs and characteristics. The individual is approached with a separate marketing mix. The tailored made dress, the cobbler designed shoes and gold-smith designed jewelries are examples of customized marketing. The form fits the product-service offer to the individual needs of the customer. Manufacturers of airplanes, hydro-electric generators, designer clothes, and custom built houses also follow this highest form of segmentation. For example, the Airbus manufacturer takes direct advance orders from the airlines and manufacture the aircraft according to their specifications.
