Advantages and Disadvantages of Mass Marketing
Mass Marketing has been a beneficial strategy for companies intending to reach a broader market. Selling products directly to the mass market rather than establishing consumer relations is what mass marketing emphasizes. However, where sometimes this advertising strategy works the best, it falls short in some scenarios too. The Advantages and Disadvantages of Mass Marketing outlay the pros and cons of this advertising in the current competitive market structure.
What is Mass Marketing?
As the name suggests, this type of advertising involves a mass market where the product company approaches the consumers through the same promotion and distribution system for everyone in order to sell their products. There are certain advantages of mass marketing for both the consumer and companies.
Companies strive to produce a lower cost structure than the average competitor. Their main focus is to sell as many products as possible to increase economies of scale. From soap to snacks, every daily-use product advertised on Billboards, TV, etc., is a mass product and the strategy involved throughout the marketing process is known as mass marketing.
Features of Mass marketing
- The products sold generate higher profits.
- Wider consumer-base.
- Numerous advertising channels are involved.
- Companies manufacture products in bulk.
What are the Advantages of Mass Marketing?
Attracting many customers, offering products at standard prices, and higher sales are some apparent advantages of mass marketing strategy. The following are other benefits of mass marketing strategy that also affect a company directly or indirectly.
1. Cost efficiency is one of the leading advantages of Mass Marketing
This form of advertising doesn’t put a financial load on companies compared to door-to-door selling, as you can perform this strategy on an affordable budget. Even smaller business follow a mass marketing approach to deliver their products to potential customers.
They don’t have to spend resources on contacting the consumers individually as the details of the products are conveyed through print media, broadcasting channels, or social media to reach millions of viewers.
2. More potential customers
Companies target a large number of consumers intending to sell their standard-priced products. This approach is usually beneficial as you can reach millions of viewers once you advertised the product.
Giving people what they want, which means definite product details, reinforces the product’s image in their minds. Ultimately, there is a rise in the number of potential customers and demand for the product.
3. High sales
As the demand rises, the production ramps up and supply balance the growing demands. So even if it’s a needle, it’s the manufactured units in millions; the company is likely to enjoy volumes of profit from it. Higher profit is one of the major advantages of Mass marketing as companies tend to pay less in other promotion and advertising methods.
4. Brand Building
Selling your own product at a huge scale doesn’t only generate profit, you can increase the awareness of the product and the brand. Coca Cola, McDonald’s, and KFC are the best examples of brand building. They have consistency in their business over the years because of this marketing strategy.
5. Build Trust
Once the brand is developed, trust-building comes next to be the best in the competition. Suppose a customer is satisfied with your products. In that case, they are less likely to prefer another service provider for the similar product as they are already getting the product in the best quality. Consumers take more interest in choosing a product that they see every day.
What are the disadvantages of Mass marketing?
Like everything related to business there are some disadvantages of Mass Marketing consumers and companies may face.
1. Incorrect Approach may hinder the business process
Pitching the right details to the consumers is the key to draw their attention. That being said, as a company manufacturing consumer product, you have to give they want. If you don’t perform this mass marketing strategy correctly, you may face some issues.
Inability to mark your impact on the consumers is one of the dreaded disadvantages of Mass marketing. Not every customer expects the same result from a particular product. Thus you need to think beyond their expectations. It needs both more time and effort to figure out a marketing strategy.
2. Less Attractive to Consumers
Finding what product the audience requires the most and how it will impact their daily lives is one of the key factors. If your product cannot meet the consumer’s expectations, this could lead to ignorance from customers.
The same may happen if you advertise too much about the same product. Sometimes, consumers getting bored by seeing a product everywhere, and they lost interest in buying that product.
3. Higher Cost
It may sound surprising, but following a mass marketing approach usually end up with huge costs. Higher Costs are the leading disadvantages of mass marketing as you may have to pay more to advertise the product on popular TV channels and Radio stations. It can be expensive, even on social media.
Higher costs are sometimes what discourages the small business. So it’s better to have the market insights before investing in the advertising.
4. Intense Competition is one of the major disadvantages of Mass Marketing
You are more likely to face competition as you try to make your way into the market. There are more people, companies, and competitors that are crowding the marketplace. Some competitors may be larger or smaller than your firm and may have a strong foothold in the market already. It’s hard to beat the competition in the market if the customers already have the product you are manufacturing.
5. Low-profit margins
Since most products advertised through mass marketing have low prices, there is less profit generated on each unit. Therefore, there is less scope for charging higher prices or having more added value to it.
Companies usually depend on low prices to attract as many audiences as possible. The product is of general use, so the consumer perceives it to be of low value.
Conclusion on Advantages and Disadvantages of Mass Marketing
Understanding this strategy and how it affects your business makes it easier for you to figure out the Advantages and Disadvantages of Mass Marketing. You can easily conclude what your strategy is to penetrate the market using the skills and resources. It may not be time-consuming, but it does need extra effort to make effective strategies.