Mass or undifferentiated marketing refers to the market coverage strategy that enterprises determine to neglect the market segment differences and use one product to pursue the whole market (Tyagi & Kumar, 2004). The company only produces a product. The firm will rely on extensive distribution and advertising in order to broadcast its product and appeal a large majority of consumers’ attention. The biggest strength of undifferentiated marketing is to save cost(Sandhusen, 2008).
Coca-Cola can make full use of the single product line to produce enough products in order to meet the consumers’ need. Only in this way can Coca-Cola reduce the cost of production, inventory and transportation. Moreover, this strategy does not pay more attention to market segmentation. So companies not only do not spend capital in researching the but also establish special organizations to manage and plan market segmentation. So this strategy is beneficial for companied to cut down on a lot of middle links and intermediaries.
Only in this way can enterprises reduce the cost of marketing research and the cost of management. However, the strategy is not perfect. With the rapid development of society, the strategy’s weakness exposed day by day. As consumers’ actual situations are different, consumers have different demands for products. But, because mass marketing ignores the differences of market demands, it can not meet the diversified demands of the consumers. Moreover, consumers’ needs are not machine-parsable. Their needs will change with the change of incomes and time.
It is impossible that one product is accepted by consumers in a long time. Because of Coca-Cola’s changeless taste, it will let some consumers lose the desire to buy Coca-Cola. This strategy is easy to let Coca-Cola’s competitors find its breaking point and make the Coca-Cola lose some consumers. It will let Cola-Coca fail in intense competitions. In addition, the biggest advantage of this strategy can strengthen the enterprise’s brand image. The single product line can produce the benefits of scale operation and guarantee the products’ high quality.
Moreover, logistics distribution, advertising and other resources distribution focuses on one product. In addition, because the strategy does not attach importance to market segmentation, it can reduce the cost of sales promotion. Because before 1980 Ford Motor Company did not pay more attention to the market segmentation and the consumers’ needs, its cars was the black Model-T regardless of the cars’ model. However, the General Motor changed the cars’ model and produced all kinds of cars according to the consumers’ needs. This phenomenon made the Ford Motor be defeated by the General Motor.
In addition, this strategy generally pays more attention to the big market and ignore the lots of small markets, this strategy will let enterprises lose the opportunities to enter into other small markets. When the big market is in the state of saturation, this strategy may hinder enterprises rapid development. Finally, the mass strategy can improve the enterprises’ brand image and keep its quality. These will bring about tremendous benefits for enterprises. So it produces opportunity that enterprises have enough capital to cooperate with other network of sellers in order to broadcast their product.
Only in this way can enterprises expand their market share. However, this strategy only directs at the biggest market segmentation to develop a single product and marketing plan. This phenomenon is easy to cause excessive competitions in this field. Meanwhile, the consumers’ needs can not be satisfied in some small market segmentation. These will bring about adverse effects on enterprises and the consumers. Moreover, when other enterprises produce more distinctive drink that aims at different market segmentation, the enterpsises’ market will be nibbled by other enterprises.