BUISENESS MANAGEMENT
MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Higher revenues can be spent on R+D
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Homogenous products need to be differentiated through marketing which can be expensive.
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Mass marketing is straightforward as everyone is equally targeted.
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Large scale productions means economies of scale and lower average unit costs.
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Detailed explanation-1: -Mass marketing disadvantages The company does not adapt products according to consumer tastes and special requirements. Thus, for quality-conscious consumers, products are not attractive. Low-profit margins. Companies usually rely on low prices to attract as many customers as possible.
Detailed explanation-2: -#1 – Low price point and mass production Companies following this strategy often rely on mass production to meet their potential product volume requirements. Mass-producing products has other advantages, for example, increased accuracy, minimized automation costs, faster product distribution, etc.
Detailed explanation-3: -Mass market advantages Companies also benefit from cost-efficiency through higher economies of scale, whether in production, marketing, promotion, or other business functions. Consumers get low prices to satisfy their needs. Considerable revenue due to high sales volume compensates for low prices.
Detailed explanation-4: -Mass marketing refers to treatment of the market as a homogenous group and offering the same marketing mix to all customers. Mass marketing allows economies of scale to be realized through mass production, mass distribution, and mass communication.