What are the advantages and disadvantages of mass marketing?

Full Answer

In 1970, William F. Sharpe put forth the CAPM model in his book Portfolio Theory and Capital Markets. In 1990, largely as a result of this early work, he received the Nobel Prize for Economic Sciences together with Harry M. Markowitz and Merton H. Miller, each of whom contributed to the establishment of financial economics as an individual field of study, according to the official website of the Nobel Prize.

Related Questions

What are the advantages and disadvantages of quota sampling?

One of the advantages of quota sampling is it helps create an accurate sample of the population when a probability sample cannot be obtained. Also, since quota sampling does not need a sampling frame or spelling techniques, it is easier and quicker to perform. A disadvantage is that it is difficult to see potential sampling errors.

What are the advantages and disadvantages of benchmarking?

Benchmarking may contribute to company growth and foster better relations among employees by encouraging new ideas and concepts, but it can also spark competition among employees and be used to judge the work of individual employees. Benchmarking, depending on the size and collaborative spirit of the undertaking organization, may increase sales, productivity and ROI.

What are advantages and disadvantages of price discrimination?

Advantages of price discrimination include higher revenue, which in turn lets companies offering products invest in more research and development, ultimately improving their services, while disadvantages include limited consumer surplus and higher prices for many consumers.

Price discrimination refers to a pricing and retail tactic where companies charge consumers different prices for the same products depending on regional economic circumstances. This discrimination occurs in many settings, including electrical companies charging different rates for on-peak and off-peak hours and organizations offering discounted tickets for students and seniors.

What are the advantages and disadvantages of market segmentation?

Market segmentation allows a company to target its products or services to a specific group of consumers, thus avoiding the cost of advertising and distributing to a mass market. A disadvantage of segmentation is that it sacrifices economies of scale in production, distribution and communication, according to NetMBA. Segmentation is effective for small businesses that match marketing strategies with core customers, according to the Houston Chronicle.