Mass Marketing

• Author: Earl Meyer, Lori Dailey
• Pages: 507-509

Page 507

Mass marketing is a marketing approach in which the marketer addresses all segments of the market as though they are the same. The approach results in a single marketing plan with the same mix of product, price, promotion, and place strategies for the entire market.

The appeal of mass marketing is in the potential for higher total profits. Companies that employ the system expect the larger profit to result from (1) expanded volume through lower prices and (2) reduced costs through economies of scale made possible by the increased volume. In order for the system to work, however, certain conditions must exist. One is that the product must have broad appeal and a few features that distinguish it from competing products. Another is that it must lend itself to mass production. In addition, the opportunity must exist, and the marketer must have the ability to communicate and distribute to the aggregate market.

Page 508

THE EVOLUTION INTO MASS MARKETING

Mass marketing first emerged as a workable strategy in the 1880s. Prior to that time, local markets in the United States were geographically isolated, few products had brand recognition beyond their local area, and continuous process technology had not yet come into its own. Profits in the fragmented markets were based on a low volume/high price strategy.

Between 1880 and 1890, several things occurred that eliminated the barriers and enhanced the appeal of mass marketing. The railroad and telegraph systems were completed, thus providing the potential for nationwide distribution and communication. Mass-production techniques and equipment were refined and adapted to a variety of products. Additionally, the population was growing rapidly, the country was recovering from the Civil War, and the largest depression in U.S. history until that time was ending.

These favorable circumstances by themselves did not create mass marketing. Entrepreneurial vision, drive, organization, and resources had to be added to implement the strategy. From 1880 to 1920, early innovators in many different industries stepped forward to seize the opportunity. Although the total number was relatively small—one or a few per industry—the impact on the U.S. economy was enormous. Many of these pioneering marketers built national reputations for their brands and companies that...