| Traditional mass marketers, expend huge | | | | models with at least forty variants, to cater to |
| advertising budgets to reach out to a large | | | | different needs of consumers. The base model of |
| audience. The main argument in favour of the | | | | the vehicle may not have air conditioning or |
| widely used methodology of mass marketing is | | | | power steering, but for the models that have |
| that it attracts maximum potential consumers and | | | | these features, the buyer has to pay higher |
| has a wider reach. | | | | prices. |
| However these marketers are increasingly finding | | | | The key for marketers is to identify the |
| themselves with cost overruns and diminishing | | | | microsegments that are willing to pay the |
| profit margins. This can be accounted to the | | | | premium for additional features and roll out newer |
| gradual change in buying patterns and the | | | | variants to satisfy the needs of diverse consumer |
| changing consumer buying behavior. With the | | | | segments. |
| increasing proliferation of advertising and | | | | The trend shows that consumer satisfaction is |
| distribution, advertisers are caught up in an intense | | | | passé. Consumers want to be shocked, |
| competitive scenario, where the costs are huge | | | | surprised and jolted out of the boredom of the |
| and the hit ratio is less. | | | | routine product offerings. Consumer delight is the |
| This can be attributed to the fact that consumers | | | | way of the future. This is why companies like |
| buying patterns are changing and this has led to | | | | P&G, McDonalds, and LG have used |
| creation of various microsegments within a | | | | micromarketing techniques to satisfy a wide |
| particular customer segment. For example, | | | | range of customer expectations. |
| consider a market segment for compact sedans. | | | | For example, P&G created a separate |
| A compact sedan may be targeted to various | | | | budget for introducing a product variant which |
| segments like young married couples or the | | | | was called Pantene Relaxed and Natural to cater |
| unmarried buyer with high median income. | | | | to the needs of Black Women in the United |
| The preferences of consumers within the | | | | States. The customer now knows that he is the |
| particular segments vary, and hence automobile | | | | king. Given the newly evolved demanding |
| companies launch a wide range of variants at | | | | consumer, huge competition, shrinking marketing |
| different price bands to satisfy a wide range of | | | | budgets, the challenge for today's marketer is to |
| consumer needs within the same microsegment. | | | | get closer to the consumer by micro-segmenting |
| Maruti Suzuki's portfolio consists of thirteen car | | | | and micro-positioning his offerings. |