Marketing
approaches
Every product launch requires strategic planning to make sure messages about
a new product reach the right types of consumers, are communicated through
the most effective combination of channels, and have the most relevant content
and style. Once marketers have researched the market and defined their target
audience, they face several key decisions on how to make their approach.
Types of approaches
The big choice
The first decision is whether to go for a narrow, specialized market or to
appeal to as large an audience as possible. See pp.198–199.
Niche marketing
“I only have eyes for you.”
Mass marketing
“I love you all.”
Whom to target and how to go about it are crucial to
success. Marketers may use several complementary
approaches to different groups of potential consumers.
Rather than sending the same message via different media,
they usually adjust the tone and style of the marketing
pitch to suit the channel as well as the target consumer.
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how sales and marketing works
Marketing approaches
How to tell the customer
Marketers often get the best of both worlds by using
traditional and online channels in varying styles.
Making a move
Turning the buying transaction into an experience
the consumer enjoys can help sell a product.
Traditional
channel allied
with a dominating
style. “Let me tell
you,” it blares.
See pp.200–201.
Digital channel allied with a
soft approach. “Let me woo you,”
it whispers.
See pp.202–203.
Sensory marketing
“Wake up and smell
the roses.”
It seduces the
customer with sights,
sounds, and smells.
See pp.206–207.
Engagement
marketing
“Come dance
with me.”
It entices the
customer to
collude in
product sales.
See pp.204–205.
Relationship marketing
“Let’s be friends.” It builds a rapport with its
audience of consumers. See pp.208–209.
85%
of all purchasing
decisons in the US are
made or influenced
by women
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196 197
how sales and marketing works
Marketing approaches
How to tell the customer
Marketers often get the best of both worlds by using
traditional and online channels in varying styles.
Making a move
Turning the buying transaction into an experience
the consumer enjoys can help sell a product.
Traditional
channel allied
with a dominating
style. “Let me tell
you,” it blares.
See pp.200–201.
Digital channel allied with a
soft approach. “Let me woo you,”
it whispers.
See pp.202–203.
Sensory marketing
“Wake up and smell
the roses.”
It seduces the
customer with sights,
sounds, and smells.
See pp.206–207.
Engagement
marketing
“Come dance
with me.”
It entices the
customer to
collude in
product sales.
See pp.204–205.
Relationship marketing
“Let’s be friends.” It builds a rapport with its
audience of consumers. See pp.208–209.
85%
of all purchasing
decisons in the US are
made or influenced
by women
US_196-197_Marketing_Approaches_OVERVIEW_Steve.indd 197 21/11/2014 16:25
Niche vs. mass
marketing
How it works
Both niche and mass marketing
strategies offer businesses the
potential to make a high return
on investment. A niche approach
generally works on the basis of low-
volume sales at a premium price to
a specific group of consumers, while
a mass approach tends to use heavy
promotion to a wider audience and
aims to achieve high-volume sales.
In reality, businesses tend to mix
up both approaches, launching a
niche product and then expanding
it to a mass market. Marketers also
use internet channels to promote
the same product to different
groups of customers within a
mass audience.
POPULARITY
PRODUCTS
Head Popular products with
high demand and sales volume
Long tail Products
with low demand
that sell steadily
20%
of sales can
make up to
80% of profit
Withdraw The point at
which retailers typically
stop selling a product
Long-tail marketing
Coined by Wired magazine editor Chris Anderson, the term “long-tail
marketing” takes its name from a demand curve (see below) depicting
products with low demand or sales volume—niche products—that
continue to sell and make profit over time.
need to know
Two fundamental choices traditionally face marketers: whether to
try to sell a product with broad appeal to as many people as possible,
or to focus on selling a tailored product to a defined group.
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how sales and marketing works
Marketing approaches
Mass market
An unfocused strategy that aims at
the broadest customer base.
Large segment
Channels marketing resources to one
large segment of the mass market.
Adjacent segment
Once large segment is fully penetrated,
product expands into related segment.
Multi segment
Markets to several segments at once,
with a customized strategy for each.
Small segment
Markets to a small segment with few
competitors, if resources are limited.
Niche segment
Focuses marketing resources on a
specific group of customers.
Mass customization
Customizes a strategy for each
sub-segment within the mass market.
Who and how
Business targets a select group of consumers
with specific need and wants.
Customers often prepared to pay a premium
price for an uncommon product.
Sales volume of niche product low, so does not
benefit from production economies of scale
(manufacturing large quantities to decrease the
unit cost of production).
Niche market
HYBRID APPROACHES
Using social media to identify and reach
more than one target market, marketers have
developed hybrid approaches that are more
flexible than conventional niche or mass-
market positioning of products.
Who and how
Business targeting a large group of consumers
with generalized wants and needs.
Requires high marketing spend to promote
products, which must be widely distributed.
Marketplace often crowded with other
competitors selling a similar product.
Mass market
US_198-199_Niche_vs_mass_Marketing.indd 199 21/11/2014 16:25
198 199
how sales and marketing works
Marketing approaches
Mass market
An unfocused strategy that aims at
the broadest customer base.
Large segment
Channels marketing resources to one
large segment of the mass market.
Adjacent segment
Once large segment is fully penetrated,
product expands into related segment.
Multi segment
Markets to several segments at once,
with a customized strategy for each.
Small segment
Markets to a small segment with few
competitors, if resources are limited.
Niche segment
Focuses marketing resources on a
specific group of customers.
Mass customization
Customizes a strategy for each
sub-segment within the mass market.
Who and how
Business targets a select group of consumers
with specific need and wants.
Customers often prepared to pay a premium
price for an uncommon product.
Sales volume of niche product low, so does not
benefit from production economies of scale
(manufacturing large quantities to decrease the
unit cost of production).
Niche market
HYBRID APPROACHES
Using social media to identify and reach
more than one target market, marketers have
developed hybrid approaches that are more
flexible than conventional niche or mass-
market positioning of products.
Who and how
Business targeting a large group of consumers
with generalized wants and needs.
Requires high marketing spend to promote
products, which must be widely distributed.
Marketplace often crowded with other
competitors selling a similar product.
Mass market
US_198-199_Niche_vs_mass_Marketing.indd 199 21/11/2014 16:25
How it works
Traditional marketing encompasses
a number of tried-and-tested ways
of building a brand and pushing
a product to sell more. It remains a
key facet of marketing. Nowadays,
however, most businesses use
a mix of traditional and digital
marketing methods. One of the
advantages of traditional marketing
is that companies have face-to-face
contact with customers through
person-to-person selling, special
events, and event sponsorship.
Traditional marketing
Traditional
marketing process
Small and large businesses use
a range of conventional marketing
channels, and often integrate them
with digital marketing strategies.
TV
Promoting sales through TV ads,
program sponsorship, or
product placement.
Events
Staging sports activities,
themed displays, parades,
or exhibits to promote a
product, cause, or brand.
Face-to-face
Approaching customers directly
to create brand awareness or
persuade them to buy a product.
Telemarketing
Calling potential customers who
have an identifiable need for a
product with a sales pitch.
Direct mail
Mailing catalogs or circulars
to a targeted list of consumers,
often promoting special offers
on products.
Before the digital age, marketers relied exclusively on non-digital
channels, such as TV, radio, and print media, as well as direct mail,
events, and cold-calling, to convey their message to the consumer.
US_200-201_Traditional_Marketing.indd 200 21/11/2014 16:39
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