END-OF-CHAPTER SUPPORT
MARKETING DEBATE—Is Mass Marketing Dead?
With marketers increasingly adopting more and more refined market segmentation schemes—
fueled by the Internet and other customization efforts—some claim mass marketing is dead.
Others counter there will always be room for large brands employing marketing programs to
target the mass market.
Take a position: Mass marketing is dead versus mass marketing is still a viable way to build a
profitable brand.
Pro: People are consumers and people have a number of basic personal and societal needs that
transcends individuality. Certain basic human physical needs (food, clothing, and shelter, for
example) can be best met through mass marketing. In addition, consumers desire low prices and
functionality in some of their basic products and services. Mass marketing allows the firm to
foster the lowest price through economies of production, distribution, and marketing.
Additionally, people like to have their daily life remain uncomplicated; that is best served
through mass produced products. Asking the consumer to make too many choices can backfire
on marketers as it can overly complicate and stress consumers—for example, the design of a new
home can be both a rewarding and stressful experience; the intended owner(s) is(are) asked to
make literally hundreds of decisions about size, floor plans, colors, and options throughout the
process. Not complicating a consumer’s life, through mass production and mass marketing of
products can create a viable marketing niche for companies.
Con: People are consumers and with the plethora of product and service choices available to
solve their problems today, a firm must produce individual and customized products to compete.
Basic human needs and wants can be delivered to the consumer by a wide range of choices.
Technology has given the consumer the power and ability to interact with manufacturers in
producing the exact product, with the exact features, and at the target price desired. Consumers
are better educated and better informed than previous generations. Consumers are also more
sophisticated than ever before. These increases in information, technology, and sophistication are
causing firms to respond to the consumers’ wishes for individuality. Accepting the concept of
“individuality” in the production of goods and services is the only option for many firms.
Individuality and the service that that concept demands can lead to a “supplier-consumer”
relationship that can and will build strong brand preferences. Those firms who choose not to
compete or fail to compete in these arenas run the risk of falling behind competition and in
experiencing the subsequent losses in market share and profits.
MARKETING DISCUSSION—Descriptive Versus Behavioral Market Segmentation
Schemes
Think of various product categories. In each segmentation scheme, to which segment do you feel
you belong? How would marketing be more or less effective for you depending on the segment?
How would you contrast demographic and behavioral segment schemes? Which one(s) do you
think would be most effective for marketing trying to sell to you?
Suggested Response:
Each student’s answer will vary depending upon the product chosen. However, all answers
should contain some of the following terms.
Niche markets
Local marketing
Customerization marketing
Geographic segmentation
Age and life-cycle stage
Life stage
Gender
Income
Generation
Social class
Psychographic segments (VALS)
Behavioral variables
Usage rates
Buyer-readiness stages
Loyalty status
Marketing Excellence: HSBC
1.) What are the risks and benefits of HSBC’s positioning itself as the “World’s Local
Bank”?
2.) Evaluate HSBC’s recent business and marketing shift. How do you think its current ad
campaign and tagline, “HSBC helps you unlock the world’s potential,” resonate with its
key consumers?
Marketing Excellence: BMW
1. How does BMW segment its consumers? Why does this work for BMW?
2. What does BMW do well to market to each segment group? Where could it improve its
marketing strategy?
Suggested Answer: Student answers will vary as to the pros and cons of BMW’s selective target
marketing. Good students will note that BMW has created a different automobile for each of
their segmented target markets while keeping the ‘ultimate driving machine’ tagline consistent
across all products.
Good students will note that in the article, it is stated “research showed that they cared less about
the bragging rights of the BMW brand and instead desired a variety of design, size, price, and
style choice.” As a result, the company took several steps to grow its product line by targeting
6 Series, a flashier version of the high-end 7 Series, also targeted this group.”
3. Should BMW ever change its tagline, “The Ultimate Driving Machine”? Why or why
not?
Suggested Answer: Student answers will vary, but it is currently consistent with the product