US Data Corporation Direct Marketing Blog

Targeted Marketing VS. Mass Marketing5:00 am

By Janet

Targeted Marketing VS. Mass Marketing

Research by the U.S. Small Business Administration recommends spending 7-8% of your gross revenue for marketing and advertising if your business does less than $5 million a year in sales, and up to 20% if you’re a large company. Using a percentage of gross revenue is a good budgeting tactic because it allows your spending to fluctuate as your revenue does. However, all businesses, small and large, must make sure their marketing budgets are getting the most bang for their buck. In marketing, reaching more people means better results, right? Not necessarily. The best way to get your money’s worth is to make sure you are promoting your product or service to the right audience at the right time by using targeted marketing, such as direct mail marketing or email marketing. By using targeted marketing, you have a higher chance of reaching potential customers that are interested in your products and services.

Targeted marketing is a precise form of marketing and communication. It aims marketing messages at smaller, defined targeted segments or even individual people. Mass marketing delivers generic messages to a large and relatively undefined audience. Mass marketing includes mediums such as television commercials, billboards, and newspapers. Although mass marketing has a large reach, it has a limited appeal. Not everyone thinks alike, so a marketing messages that works well in one geographic location or with one demographic might not work well for others. For example, an expensive organic health food store may do better in wealthy suburbs than a college town.

When comparing targeted marketing to mass marketing, the numbers clearly show that targeted marketing is more effective. According to statistics by CMO, targeted advertisements are twice as effective as non-targeted ads. Just because you are marketing to a bigger crowd doesn’t mean you are going to reach a more engaged audience.

One of the major benefits of targeted marketing is that you are distributing your message to an audience that is more likely to respond. Knowing your audience’s demographics, needs, shopping habits, locations and other targeted info can help you deliver effective advertising. For example, if a florist wants to reach couples to promote for Valentine’s Day, they can use a mailing list targeted towards married couples living within a 5 mile radius of the florist. Marketing to a more relevant targeted audience will increase the effectiveness of your marketing and improve sales and ROI.

Some businesses are wary of targeted marketing because they fear excluding prospects who could potentially become customers. It’s true that, by utilizing targeted marketing, you will be marketing to a much smaller group of people. However, when targeted marketing is done right, you will only be excluding people who are unlikely to purchase from you. This will ensure that you do not waste your marketing budget on a non-converting audience.

This kind of marketing has a smaller reach, but produces better and more accurate results than mass marketing, because it is designed around specific consumer needs and preferences. Communication that acknowledges the consumer and their needs is much more impactful than a generic message. Not all consumers are the same, so stop taking a one-size-fits-all approach to your marketing and start segmenting your audience into specific groups. Contact US Data Corporation at (888) 578-3282 to find out how your business can benefit from targeted marketing today!



Sign up for our free mailing list to receive our newsletter, special promotions, and more!

Follow Us

Facebook Twitter LinkedIn Google+ RSS Feed

Like Us on Facebook

Learn More About...

Email Marketing

Marketing Strategy

Direct Mail Marketing

Data Cards

Fun Marketing Facts

Mobile Marketing

Social Media

Happy Client Highlight

Work Tips

Recent Posts

5 Tips for Convincing Clients to Try New Marketing Strategies

Is Direct Mail Marketing Still Effective with Millennials?

Email Marketing Relevancy Is More Important Than Ever

5 Black Friday and Cyber Monday Email Marketing Guidelines

Marketing 101: What is Direct Marketing?


April 2017

January 2017

November 2016

October 2016

September 2016

August 2016

July 2016

June 2016

May 2016

April 2016

March 2016

February 2016

January 2016

December 2015

November 2015

October 2015

September 2015

August 2015

July 2015

June 2015

May 2015

April 2015

March 2015

February 2015

January 2015

December 2014

November 2014

October 2014

September 2014

August 2014

July 2014

June 2014

May 2014

April 2014

March 2014

February 2014

January 2014

December 2013

November 2013

October 2013

September 2013

August 2013

July 2013

April 2013

March 2013

February 2013

January 2013

December 2012

November 2012

October 2012

September 2012

August 2012

July 2012

June 2012

May 2012

April 2012

March 2012

February 2012

January 2012

December 2011

November 2011

October 2011

September 2011

August 2011

July 2011

June 2011