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In the 1960s, an advertiser could reach 80% of U.S. women with a spot aired simultaneously on
CBS, NBC, and ABC. Today, an ad would have to run on 100 TV channels to have a prayer of
duplicating this feat. Monolithic blocks of eyeballs are gone. In their place is a perpetually shifting
mosaic of audience micro segments that forces marketers to play an endless game of audience

- Eric Schmitt,
Forrester Research, Business Week,
"The Vanishing Mass Market", 12 July 2004.


Mass media is a term used to denote, as a class, that section of the media specifically conceived
and designed to reach a very large audience. It was coined in the 1920s with the advent of
nationwide radio networks and of mass-circulation newspapers and magazines. These channels
of communication such as books, magazines, adverts, newspapers, radio, television, cinema,
videos and Internet, which occupy a central and pivotal role in our lives, and through which
messages flow, are produced by a few for consumption by many people.

The success of any company depends upon the type of marketing strategy used and there is a
direct correlation between the media and its target markets. There are four alternative methods
used for defining target markets. They are mass marketing, niche marketing, market
segmentation and micro marketing. These techniques can be effective when used properly in the
right situation for the right product levels of Marketing Strategies. The various levels of targeting
markets are as follows: -

Level 1 - Mass Marketing

Level 2 - Segment Marketing

Level 3 - Niche Marketing

Level 4 - Micromarketing, e.g., Local Marketing, Individual Marketing

Mass Marketing

Mass marketing is used to sell a product to a large variety of customers in large amounts. i.e., it
involves a single marketing program aimed at large numbers of customers with essentially the
same product, promotion, etc. Mass marketing assumes that all customers have similar needs in
relation to a particular product.

Mass marketing is the opposite of niche marketing, where a product is made specially for
one person or a group of persons. e.g.. Henry Ford Model T, Coca Cola, etc.

Market Segmentation

Somewhere in between mass and niche marketing is market segmentation. This essentially
means taking the overall group of customers and breaking them up into similar smaller groups.
Products and marketing activities are generally focused on two or more well-defined groups. The
market is divided into countless number of complex new market segments based on geographic
(urban, rural, region), demographic (age, income, education) and physiographic (lifestyle,
personality characteristics). Each sub-market reacts to something different. Different products and
targeting strategies are required for different segments. Thus, using a single mass marketing tool
to reach out to the various customers will not work, e.g., automobile companies such as Maruti,
Hyundai, etc., follows this type of marketing. They have various models, each catering to a
specific income segment of the market.

Niche Marketing

The opposite of mass marketing is niche marketing. With this technique, a particular group of
customers is concentrated on and given specialized attention. Marketing to this group is much
focused. This can be a very effective method for smaller companies with limited financial
resources. Creating a niche market can be achieved not only with the product, but also with
specialized attributes and sePeople are increasingly becoming cautious whether the product is
right for him. Customized products make a lot of sense from the consumer point of view when
convenience and comfort are the prime motivators. From the marketer's point of view, using mass
marketing strategy will not work for such customized products catering to specific consumers.

Thus, it is better to save by avoiding mass media and using niche-marketing techniques,
e.g., teenagers buying various products for their bikes like four exhaust pipes, gold tire
rims, fancy trims, black windows, and neon-lights underneath, etc.

Big brands are jumping on the opportunity, after realizing that personalized products form an even
closer bond between the consumer, the product, the brand, and the company, e.g., Rolls Royce
and Bentley Automobile.


Micromarketing tools are fine tuned to allow ever more targeted media, extending the concept of
one-to-one marketing over one-to-many or one-size-fits-all. In this new age of micro marketing, it
is not size of the audience that matters but the ability to reach and respond to very specific
segments of customers. Micromarketing includes a personalized message to each consumer
regarding the product, and hence, when done rightly, commands more success and loyalty.
Various forms of micromarketing are: -

Personalized Selling Process

It involves identifying the potential customers and approaching them individually. The sales
person gives the customer personalized attention by interacting closely with him/her at various
stages such as order placement, delivery and after-sales to ensure complete customer
satisfaction and repeat business.

Direct Mail is in fact a promotional medium. Like all media, it is used to disseminate messages to
inform, persuade, and/or remind.

Mail Order does its promotion through any medium. It facilitates responses remotely, without
direct, face-to-face contact between buyer and seller.

Direct Response Advertising is advertising through any medium designed to generate an

immediate response that is measurable, such as an order, a request for information / to talk with a
sales person, to have a sales person call, to make a donation, etc.
Direct Marketing consists of direct connections with carefully targeted individual
consumers to both obtain an immediate response and cultivate lasting customer
relationship. There has been a tremendous growth in direct marketing due to the following
factors: -

The Internet / Email

De-massification - A move toward concentrated / niche segmentation

Higher Costs of Driving, Traffic and Parking Congestion

Consumers Lack of Time

Convenience of Ordering from Direct Marketers

Growth of Customer Databases

The most important factor in Direct Marketing is the Customer Databases. It is an organized
collection of comprehensive data about individual customers or prospects, including geographic,
demographic, psychographic, and behavioral data. Direct marketing utilizes the various
techniques such as Telemarketing, Direct-mail Marketing, Catalog Marketing and Direct
Response Marketing. The benefits of direct marketing are: -

Powerful tool for building customer relationships

Can target small groups or individuals

Can tailor offers to individual needs

Can be timed to reach prospects at just the right moment

Gives access to buyers they could not reach through other channels

Offers a low-cost, efficient way to reach markets

Comparison between Mass Marketing Vs. Micro Marketing

Mass Marketing Micro Marketing

Average Consumer Individual Customer
Customer Anonymity Customer Profile
Standard Product Customized Market Offering
Mass Production Customized Production
Mass Distribution Individualized Distribution
Mass Advertising Individualized Message
Mass Promotion Individualized Incentives
One-Way Message Two-Way Messages
Economies of Scale Economies of Scope
Share of Mind Share of Customer
All Customers Profitable Customers
Customer Attraction Customer Retention
Why Mass Market is Vanishing?

Marketing is undergoing fundamental and necessary changes. Conventional mass

marketing approaches like sending the same offer to many or all customers at the same
time through so many channels is less and less effective. This means that marketers must be
able to anticipate what customers will want, when they will want it and through which channel, in
order to stay competitive, keep marketing costs under control and increase revenues. The
following are some of the reasons that could be attributed to this shift from mass marketing: -

Growing Digital Media - Today's world is increasingly being defined by the Internet, which is
changing the way we market and communicate to customers. Micro marketing provides the ability
to target and reach increasingly narrow market segments through new digital media and new
digital tools - including e-mail, blogs, wikis, web-casting, pod-casting and RSS, a specification
that allows for the sharing of content over the Internet where users can select or "pull" in just the
content they wish.

These digital media also provide immense capabilities of personalization. For example, the TiVo
device available in the US automatically finds and digitally records up to 300 hours of one's
favorite shows and programs with pause, rewind and slow-motion features, all while one is out.
So a user can conveniently skip commercials, thereby curbing the reach of advertisements.

Media is no longer mass-mass but niche-mass - Mass media are no longer mass.
Communication channels are exploding and fragmenting (broadcast TV, cable TV,
billboards, radio, Internet). Audiences are diminishing. Audiences have more choices, more
distractions than ever before. This is proven by the fact that the prime time network ratings and
newspaper circulation have been sliding since the 1970s. India being country of vast diversity,
media is becoming more and more regionalized. Regional channels have emerged, which
enables a marketer to reach a linguistic group through the electronic medium - independent of
where he was staying.

Markets are becoming more and more competitive - Products within a category are getting
less and less differentiated and brands are getting closer and closer and consumers have started
to see little difference between brands. Hence, the brands are forced to find newer ways to stand
out and connect with consumers.

Once, marketers could define their brands for consumers. Make one TV commercial and run it in
some top-rating TV shows, so millions of consumers would see it. Job done!! Those days have
gone forever. Today, consumers are defining brands, even redefining them. And because
consumers experience brands holistically these days, it's not good enough to produce a
wonderful TV commercial extolling the virtues of a brand if the claims do not match up to the
actual brand experience. Brands get one chance and if they don't deliver, forget it. Especially in
this age of the networked consumer, they will share good and bad experiences with their friends.
Consumers have the power. They must be shown enormous respect if marketers are to have any
hope of them respecting their brands.

The moneyed consumers are getting more and more evolved - With greater exposure and
experience, customers demand from products and brands to deliver to individual needs and
requirements will get greater. And thus the lowest common denominator principle (the basis of
mass marketing) will no longer make brands exciting.

Shopping is changing - From being a chore to just buy products / brands for the home, it
is slowly taking the form of leisure and entertainment. Whether it is done on-line or off-line,
consumer behavior at the shopping moment will become more and more critical. Influencing that
will be as important as creating the right perceptions for the brand.
Also with the technological advancements; there has been a prolific increase in newer, narrow-
cast communications from specialized cable programming to cell-phones and PDA's. The Internet
has emerged as a very important advertising media. The reason for its popularity as an
advertising media is its interactive nature. Thus, due to the wide variety of channels available,
with all having there own reach, single mass media to target the entire target consumers may not
be helpful.

In today's highly competitive environment, businesses and marketers are experiencing

diminishing returns on advertising budgets. Response rates for traditional methods receive lower
and lower returns and are due to many factors, some of which are: -

The increase of advertising clutter.

The continued fragmentation of mass media.

The higher cost of reaching consumers.

Lack of reaching customers on a personal level (irrelevant information)

The truth about the present America is that the mass market as it has been defined, no longer
exists. It is much more heterogeneous across the board. Hence, the key is to having a sustained
branding success relevant with the consumer's life. The next question arises is "How do you
define "Relevant"?

From the "least relevant" way to communicate with a customer through the "most relevant", the
varying degrees of relevance is illustrated below using example of a document. It shows the
different levels of how you can customize a document: -

Mass - A "one size fits all" marketing message. Your marketing message is "mass-produced"
using conventional methods in large runs and every customer will receive the same message,
regardless of their relationship or profitability to your company.

Personalized - Each customer's name and address will appear on each document to
attract attention but the marketing message is static and exactly the same for each and
every customer, regardless of their relationship or profitability to your company.

Versioned - Multiple versions of a document are created to meet the needs of different groups, or
verticals, in your customer base. Combined with personalization and segmented according to
demographic or other attributes, response rates leap, as the piece is much more relevant to the
individual's interests.

Fully Relevant - Each document's content is fully customized to be highly relevant and custom-
tailored to a specific individual. A full colour document is dynamically composed and everything in
the document can be varied - the layout, text and images can all be swapped depending on the
customer. Sophisticated charts and graphs can be generated automatically and instantly included
in a finished document.

Fragmentation is the key driver of this vanishing market and Customization is the new standard.
Further, technology is empowering consumers to filter out contact from irrelevant marketers.
Hence, the brands need to be more focused in their communications - one-size-fits-all branding
approaches don't necessarily work. Another important factor is to recognize the differences
amongst larger segments of the population.
McDonald's, Allstate, Procter & Gamble all have recognized this and haves specifically focused
on effective communication stemming from a deeper human truth as applied to a brand or
category. For success, an in-depth understanding of the audience as well as experience handling
brands across time and space (to manage their equity) will be critical. Only with this balance can
strategy and executions be highly targeted and on brand.

Example: McDonald's originally a mass marketer, adapting itself to tap the huge African
American (AA) market with a new campaign. The campaign was developed specifically
based on an AA consumer research on McDonald's. The research had pointed out the following
facts: -

More AAs are single moms than any other ethnic group

Developed AA Women 18-34 target vs. the Traditional Moms target of 25-49

More value conscious than Married Moms

It led to the development of a new target: "Single Moms with Kids"

The Need of the Hour

Becoming a "remembering" enterprise also provides competitive advantage. It presents the

opportunity to build powerful relationships through using the right design interface and
remembering customers' individual specifications and interactions. The enterprise can take an
integrative approach to competition, linking the individual customer's interactions with previous
knowledge of that customer. This information is then used to drive the company's actual
production process.

Today's customer-oriented business strategies result from a unique convergence of technological

developments and social evolution. The Internet gives consumers unprecedented control over the
flow of information that reaches them. To survive in the Interactive Age, companies must forge
relationships with customers that make it more convenient for a customer to remain loyal than to
go elsewhere.

The web enables us to dispense complex product or service information, qualify sales leads,
complete purchase transactions and perform service tasks. It presents the opportunity to build
powerful relationships through using the right design interface and remembering customers'
individual specifications and interactions. The enterprise can take an integrative approach to
competition, linking the individual customer's interactions with previous knowledge of that

This information is then used to drive the company's actual production process.

Will the Situation in India Mirror the West?

"Consumer satisfaction is passé'. Delight is de-rigueur." Today's consumer wants to be shocked,

surprised, and jolted out of the boredom of countless marketers offering him the same utopia.
Mass advertising is diminishing in its effect. The customer knows he is the King. Given this
backdrop of consumer lassitude, carnivorous competition and shrinking marketing budgets, the
challenge for marketers is to get up-close and personal, micro-segment and micro-position their
offering. Necessity and desperation - the parents of invention, have made the marketers try every
trick in the book and those on the net.

The sheer diversity of India poses a challenge to marketers but also offers enormous opportunity
to differentially target and grow select regions and states. As media becomes localized, it is
possible to vary the marketing mix by state rather than rely on mass marketing activity alone to
build regional brands. This also entails shifting marketing responsibility to operating teams based
in the regions rather than run it as a central function from the corporate office.

Changing Nature of Trade and Shopper: The relatively homogenous nature of the trade in the
country is changing rapidly with the emergence of modern trade in pockets, key accounts in self
service formats and consolidation of large grocery outlets. At the same time, we are seeing the
rapid mushrooming of outlets due to growth of urban centers. Shoppers and shopping behaviour
are being segmented by outlet type. This will have a huge impact on both the scale and type of
promotions. Marketers will be forced to design and implement channel based promotions in order
to maximize their effectiveness.

Rural Markets: While designing promotions, marketers have however treated them as adjuncts
of urban centers. As rural markets emerge as the powerhouse for future brand growth, marketing
has to be done accordingly to tap this market.

Direct-to-Consumer is an emerging channel to approach a select target audience: As

consumer needs become sharply segmented and specialized products are available to satisfy
them, the use of this channel will explode.

Financial institutes in India offer various customized loans to its customers with variables
interest rates, pay back options, etc. Promotions in this channel are quite specialized.
Direct marketing is increasingly being used by many firms like ICICI, Citibank, etc., via e-mails,

Mass Customization has also become a vogue as it is an effective means to incorporate

customer feedback into the production process. It involves producing elements of the product or
service that can be assembled in different combinations - using customer feedback to identify
their individual needs. According to Pine, the mass customizing organization is driven by
observing and remembering individual customer requests and comparing those requests to the
requests of other customers.

Consider a major hotel chain's customization effort. If a customer checked into Taj Hotel in New
Delhi and asked the desk clerk for a firm pillow, the staff would make note of that request. When
that customer's travels lead to Chennai and checks into Taj again, the customer would have a firm
pillow on the bed - even if he/she forgot to request it. In other words, this hotel chain tailors its
service individually, based on the learning relationships developed with each customer.

Height of personalization in the future could be from McDonald's, placing an order, and reading
this on screen: -

Welcome, Mr. Ram, and thanks for coming in for lunch again. Your order will be ready in two
minutes. Touch the Please button and we'll be happy to print out a coupon good for a free Chat-
pat sandwich or Large Fries any weekday evening in the next two weeks. And, because you've
never tried our very popular Cherry Pie dessert, just touch button Four and you'll receive one with
our compliments today. Thanks again for coming.
However, one cannot generalize any comment on the success of market entry strategies adopted
by multinational premium brands. Several brands have failed whether multinational or Indian and
the reason in most cases is not as simple as having targeted the top end of the market!

The real mistake is committed if premium brands targeted at a niche in the market have
expected mass volumes. Premium brands cater to a specific target group of the market
and should expect shares from that target group. At the same time, brands with meaningful
differentiators do command a premium over other brands and this has happened in the Indian
market too, whether it's cars, footwear or watches.

Some MNCs enter the top-end but gradually bring in products (or acquire a brand or a company
with brands) targeted at the larger `mass' market. Bacardi, for instance, acquired Whyte and
Mackay (Whytehall whisky) to address a larger target group. There are other players who want to
upgrade mass consumers by making their brands aspirational and take them up the value curve.
There are also players like Kellogg's who are here for the long haul as the brand's task is to
change consumer habits.

The real issue with the strategies adopted by some of the MNCs was not just about launching
high-priced products but about taking the Indian consumer for granted. The attitude of `I know it
all' or that `I have a strong brand, which will make consumers just queue outside stores' is what
did not work here. Revlon's market entry strategy with its high-priced colour cosmetics and
international advertising could not show results and this forced the company to go back to its
drawing board to tailor products for the Indian market while L'Oreal's premium-priced hair colour
products successfully managed to create the category and the habit amongst its target group.
Hence, it would be wrong to assume that just having low-priced products aimed at the mass
market is the way to enter the Indian market. While price is an integral part of the mix, the other
elements cannot be undermined.

We have seen some fast learners in the Indian market too - players who have tailored their
strategies as per the realities of the Indian market. They have kept their brands relevant to Indian
consumers and created the right imagery as required for a premium brand.

Players like Reebok have products at the top-end but are continuously creating products
at the entry level to get more and more consumers into their fold. It gets critical then to
continue to be aspirational amongst consumers at the top-end who have the purchasing power
for the innovative and value-added products.

Marketers also have different strategies for introducing top-end products. LG's strategy of
promoting its premium, top-of-the-line models like Flatron helps the brand create an imagery of
high-end technology.

When the consumer discovers an aspirational brand like LG offering TV sets to suit his budget
too, he willingly purchases it and is proud to own an LG TV set. The company manages to chase
volumes as well as attract the top-end consumer segment.

The media itself had created the `multinational' hype and later played a large role in dismissing
each and every brand as a failure in the Indian market. The reason in most cases would be its
high-priced products. But hasn't this made Indian consumers upgrade to better products, become
more discerning? It has also made Indian players upgrade their own packaging, quality and
retailing standards. And yes, MNCs have also been forced to create offers, which can make it
meet its volume targets, whether at the top-end or in the mass market.

Further more...
"P&G's Micromarketing": To reach out to teenagers, it set up a viral marketing unit Tremor. It
redesigned one of its products, Always, for the Russian market. For targeting the Blacks in US, it
created a separate budget and introduced a product variant (Pantene Relaxed and Natural) for
Black women. Through packaging (information both in Spanish and English) and direct mailers, it
targeted the Hispanics.

"LG: Rural Marketing in India": For serving the spread out rural markets better, it opened more
than 60 Remote Area Offices (RAOs) and put in place more than 2,500 service personnel. On the
product front, it launched color television sub-brands (Sampoorna and CinePlus), semi-automatic
washing machines and refrigerators at affordable prices and with customized features.

Its other initiatives included road shows and demos. As a result of its rural marketing
moves, 60% of its turnover came from semi-urban and rural areas in 2003.

"Allen Solly's Foray into Western Wear for Indian Women": Madura Garments extended its
brand to western women's wear. Its initiative was the first attempt in India to offer readymade
western wear for women. A pre-launch study revealed that though Indian women liked to
experiment with western wear, they did not have access to styles that suited them. Madura
recruited an international designer to offer specialized and modern styling to suit Indian women.
After test marketing in Bangalore, the exercise was rolled out nationally, with promotions (fashion
shows and direct mailers) and even exclusive outlets. With this attempt opening up a new
segment, competing brands Raymond's, Wills and Indus League also ventured into this business.

Every advertisement, may it be Pepsi that features Shah Rukh Khan in the north, while
Madhavan and Surya in the South, Thumps-up that features Akshay Kumar in the north while
Chiranjeevi in AP, and Head & Shoulders features Shahid Kapoor in the north while Madhavan in
the south, regional customization is being increasingly evident.

FMCG major HLL took a break away from conventional mass media advertisement to launch its
new Clinic Plus Hair Fall Defense shampoo through the guest appearance of its brand
ambassadors John Abraham and Bipasha Basu on the Ranbhoomi episode on Sony Channel's
Fame Gurukul.

With the brisk growth in GSM subscribers in India touching a figure of 58.7 million and the
number of online users touching a figure of 28 million, online and mobile phones are soon poised
to be important communication vehicles. Further, the Indian online market could touch upto
Rs.162 crores by March 2006.

Recently, Cadbury India chose the online medium to complement its "Pappu pass ho gaya"
(Pappu has passed). Pepsi also recently previewed its Shah Rukh Khan 'Sapera' (Snake
charmer) campaign online before taking it to the TV while arch-rival Coca-Cola created a
promotional blitzkrieg around Vanilla Coke launch on its website.

"The convergence of million consumers and digital media, providing the access to rich
media content and services from the internet making it a very potent medium for
advertisers," says Jasmeet Singh, VP - Product Marketing,

Micromarketing through Internet is picking up the heat due to following reasons: -

1) Most of the Internet users are young and prefer to read about the product online before making
a purchase decision. This facilitates "extended dialogue" with the viewers. For instance, against
an average dialogue window of 30 seconds in traditional media, Net advertisements can provide
an extended dialogue of six minutes including the time taken to do research, download
information, leave behind their information and conclude a transaction.
2) Online advertising provides a 24X7 access to information. Besides, it is the customer who
decides which advertisement to watch and hence offers a better penetration and conversion.

3) Micromarketing through Internet might prove cheap as unlike a 30 second spot on any of the
popular serials or during an important cricket match could cost upwards several lakhs, a one-
month banner ad on homepages of popular websites can vary from Rs..1 Lakh to Rs. 25 Lakhs.

4) Further, online medium enables accurate tracking of the viewer response as the returns are
calculated based on cost-per-impression (how many times the ad is noticed on the site), cost-per-
click and cost-per-conversion.

Also, the spending on interactive medium has witnessed significant growths with financial
services companies allocating as much as 2.5% of their budget on net advertisements. This year
the industry expects, that some of the sectors such as consumer durables, financial services and
FMCGs to spend upto 4% of their budgets on this medium.

Going forward, search ads (from Google, Yahoo,, would gain
prominence as they allow companies with smaller budgets to reach out to targeted set of
customers in a more focused manner.

It has been noted with the burgeoning IT industry, more and more software professionals log on
to the net to check out various brands, their specifications and prices before hitting the street for
the actual purchase. Of course, a majority of Indian consumers still visit stores and chat up with
sales representatives or gather product information from relatives and friends, but a growing
number of people are sifting millions of pages online before making purchase decisions.

According to the Internet Association's Desai, no other form of communication comes close to
turning exposure to promotion into immediate customer action as Internet, which allows
customers to make purchases immediately after experiencing a promotion. Prior to Internet, the
most productive call-to-action was through television "infomericals" that encouraged viewers to
call toll-free phone numbers. However, moving customers from a non-active state (i.e., watching
TV) to an active state (i.e., picking up the phone) is not nearly as effective as getting people to
click on an Internet advertisement while they are actively using the Internet.

The height of the convergence is companies are beginning to experiment different models for
enhanced brand recall through "Advergaming" that involves connecting consumers with brands
and companies through games on Internet or mobile phones.

Coke's association with Abhishek Bachchan-Aishwarya Rai starrer, Kuch Na Kahon where the
company's site carried movie specific content, sneak peeks, games and downloads yielded more
than seven million people visiting the site during that period.

Unlike other media such as TV where viewers generally multi-task, an estimated 93% of
netizens engaged in gaming session prefer to concentrate on the task at hand. This
makes advergaming an effective way to communicate with people.

Currently, the business of Internet advergaming is still small in India and is pegged at Rs. 1.0-1.5
crore per annum unlike its potential world wide that stands at Rs. 1000 crore business.

Already, various Indian market communication firms like WPP are offering advertises to exploit
tactical micro-marketing opportunities at some of the most vibrant fairs and festivals of India like
Pushkar Mela, Rajasthan (October-November); Gwalior Trade Fair, MP (December-January);
Maha Kumbh, Nasik, Maharashtra (July to September); Nehru Boat Race, Alapuzha, Kerala
(August-September); Sonpur Mela, Bihar (November-December); Magh Mela, Allahabad, UP
(January-March); Nauchandi Mela, Meerut, UP (March April).

They also offer -

Audio-video visibility through commercial time, shows and spots.

Visibility on mela ground through screen branding and mela gates, hoardings, kiosks, vinyl

Visibility enroute to mela through hoardings at bus and train stations.

Increased brand consumer contact through contact programs by sales boys.

Research to determine run on investments (efficiency study and customized research).

The increased effectiveness of such micromarketing exercises has been reinforced by the
following data provided by IMRB International.

Pushkar Sonpur Gwalior

Kumbh Nauchandi
Category Details Fair, Mela, Trade Fair,
Mela, UP Mela, UP
Rajasthan Bihar MP
Mela Promo Participation in
74% 925 78% 67% 64%
Efficacy adv
Reach of
--- 32% 38% 21% 11% 27%
potential and Total spends in
123 250 2500 1500 230
spending Rs million
Purchased /
--- 358 524 3512 156 256
person (Rs)


The Indian market would follow the west with the mass marketing giving way to micromarketing in
the near future with the buyout economy, increased per capita income, increased literacy and
increased influence from the west.

Customization of advertisements and products through different packaging, flavor, etc., is already
existent but increased customer personalization would be the order of the day soon.

Hence, the marketer has to gear up to: -

Recognize and identify the micro communities within his target group

Build up a solid database of the target group comprising of their needs, buying behavior and

Embrace digital media and use it to the fullest extend to micro-communicate

Design products and communication in keeping with their expectations

Use the available 'niche mass' media to reach these micro communities

Put in place a 'strong customer feedback system' to keep the customer database up-to-date
and delight customers with "apt customization"

Be prepared in the long run to actually address each consumer as an individual (as databases
build up and develop)

Respect customer privacy