Tuesday, November 11, 2008
Niche Marketing vs Mass Marketing
Yesterday, while surfing on net,i found an interesting example of why niche marketing is better than mass marketing.I would like to share it with you people. It asked to visualize the mass marketing person as standing smack in the middle of a major league park. In front of this person is a large pile of various denomination of currency. The mass marketing person sets this pile on fire. He wants to attract the attention of seated spectators using the smoke from the burning currency. He had given word that this smoke would clear all eigth sinus cavities. As the league park is very big, the smoke will be severly diluted by the size of the park and distance from the fireto spectators.Although the spectators know its benefits but the smoke is so spread out and diluted that spectators could hardly smell it. The end result will be minimal unless a tremendous amount of currency is set on fire to produce much more smoke.On the other hand a niche marketing person would take the pile of currency,go to a pre determined section of bleachers, then sets this pile on fire. He knows, from research that the crowd in that section of the bleachers are interested in clearing sinuses.Because of the smaller area, they will smell the smoke strongly.The niche marketer will have better results using the same amount of money because its impact is targeted.
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3 comments:
To little extent i agree that niche marketing is better technique if its carried out profitably. But i don't think so that niche will be applied largely because we should take a contigency view rather than a general view. Because what if company's resources, objectives or products doesn't allow them to go for niche marketing. But still these company's
work profitably while working on Mass Marketing approach. Take the example, of Coke, Pepsi or Toyota. Another point that I want to make is that does Niche Marketing applies to Business to Business situations. Discuss class!
yes Osama it does.
Take for instance the motorcycle vendors in Pakistan. They have got the option of either producing mc parts for the several no of average quality motocycle manufacturers in Pakistan or they can target the brand leader- Honda and produce the specific high quality parts required by them; and they would be in a niche if they decide to supply the specifically designed parts for Honda.And well if they do that, and if Honda goes in the red, they would too.
thx bhawal !!
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