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Learn moreMany Americans grew up in the era of “mass production.” Going back to Henry Ford’s creation of the moving assembly line, the Model T in one color only -- black -- and his carefully partitioned jobs, mass production was the key to high output and high efficiency for much of the 20th century. Auto companies thrived on it, as did many other industries.
During this same era, “mass media” and its use for advertising and promotion was the only way to launch a big new product and publicize it widely. Network television evolved to provide the media for mass advertising. Major television networks -- ABC, CBS, and NBC -- grew to dominate the broadcast airwaves reaching tens of millions of viewers each day. “Massification” was truly in control.
Then, some time around mid-20th century, the multi-functional department stores symbolized by Montgomery Ward, Sears, Roebuck and Company and J. C. Penney began the process of being bypassed by “mass retailers” selling at very low, discount prices. Kmart, Walmart and Target were created and grew like crazy. The original three general merchandise firms languished while specialty firms, such as L. L. Bean and Land’s End, grew.
Large city newspapers, symbolized by The New York Times and the Chicago Tribune, and national magazines like Time and Newsweek provided the print version of mass news, mass marketing and mass communications. The golden age of marketing was built on mass media, mass communications and a mass message broadcast to everyone.
Then, the Internet cannibalized classified newspaper advertising, and newspapers suffered. As Internet news spread on sites like Yahoo!, Google and MSN, the demand for editorial content in newspapers shrunk, and staff was eliminated. Then the multitude of retailers, the leading advertiser in newspapers, consolidated dramatically and newspaper ad pages dropped like a rock. Today, only a few newspapers remain strong, growing and profitable. (The Wall Street Journal and USA Today now lead the pack.) Most are limping along today, marginally in business, and a fraction of their once powerful stature.
Here’s the news flash, which is not such big news by now: the era of “mass” is over. Some would say it has been for a decade or more. As we move into the second decade of the 21st century -- mass is out -- and there is no doubt.
What’s “in"? Customization, fragmentation, segmentation, niches and global aggregation. So is high complexity and too many choices. Why? Because, they are possible -- thanks to technology -- and the desperate quest for growth in slow growing markets. Consider the hundreds of television channels. Channels can focus on special niche interests. No longer do the “major networks” have to power, reach and influence of the mass media era. Radio stations also serve niche markets now. Satellite radio expands the choices still further. Pandora moves it to cell phones. Choice grows and niches narrow. Mass is out!
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Newspapers may be failing, but blogs are multiplying. Magazines are struggling, but web-zines are everywhere. The economic models have changed too. With so much news available free, what is worth paying for? The content must be “very proprietary.” Quality control of exploding media content is uneven -- or absent entirely -- so be careful what you believe and what you see and/or read.
The custom ordered cars of the 1960’s are long gone. Other products -- like computers -- can still be ordered in exact configurations. However, computers, like cars, now come with all the popular features -- for a return to mass appeal. Clearly “massification” refuses to die quietly. It keeps fighting for its existence, despite being conquered by customization.
Small niches from around the world can be aggregated into markets via the Internet. Individual demand might be small, but combined, it is large enough. Designs can be moved freely and manipulated graphically at light speed, enabling even more kinds of “customization.”
Manufacturing mass-customization and quick-changeovers enable economical run sizes to become smaller and smaller. Print-on-demand books, still more costly per copy than a large print run, have enabled tens of thousands of authors to publish their works, adding still more choices.
However, there is still a point where too many choices are confusing and add costly complexity. To manage complexity effectively means to either get rid of it, or develop systems and processes that handle it economically. Thus “massification” in a different form continues to re-emerge in forms like Amazon.com, the Internet version of the general merchandise “department store” -- but without the fixed locations or bricks and mortar.
One thing is certain: the old era of limited variety and mass-everything is gone forever. Wide variety and customized, complex choices are here to stay. The key to success in this new era is in learning to aggregate and focus choices wisely and to manage the complexity economically, because the mass era may be gone, but the era of choice and complexity is here to stay -- for a while at least.
As you've mentioned, the mass era has been over for a while. The real insight -- as you've also mentioned -- is finding a way to aggregate those in a niche that a business is targeting. Along with that idea is figuring out how to reach the niche efficiently (and cost effectively) or charging a premium for the niche audience; mass could easily produce profits, serving the niche with customized products requires a different way of thinking about sales, cost, and profits.
Very insightful article, John. As a result of all the factors you mentioned, mass marketing is also now a relic of a bygone era. In today's era of choice and complexity, business growth must be founded in building trust with customers: http://www.famefoundry.com/1356/trustcasting.
Great article John, as it succinctly summarizes changes that we've all been seeing and experiencing. I would add that companies must also take into account and be avant-garde in their customer service policies and practices. These "customized, complex choices" consumers now have (and want) call for much more personalized, quality, customer service. Managing consumers' expectations, maintaining dialogue, and providing excellent customer service will be the keys to creating long-lasting relationships, and turning a one-time or casual shopper into a loyal and repeat customer.
Great article, John. The reasonable cost of social media allows companies of all types to narrow their audiences and drive much more efficiency in their marketing and sales, which combined with flexible manufacturing is changing the course of busines. What I'd add is that this extends well beyond customer acquisition and will completely change how companies build relationships with the capital markets, investors, bankers, acquisition candidates, etc. Mass communication in these areas just doesn't make sense anymore. We're just seeing how the foundation of professional networks is changing mass fundraising and a lot of other corporate development activities.
John, it's interesting how this cycles continues to evolve. From niche, to mass, to niche that allows us to market to more of our desired clients and customers while avoiding the use of mass marketing. Add this with the fact that, as you say, choice and complexity are here to stay, and the opportunities may be boundless, if not confusing.
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Beverly Dwyer 11 months ago
What a great article. Right on the mark. Wise are the techs that give us the tools to mass communicate in the new social media order with simplicity to manage the complexity, boredom and repetition. Systemic customization is welcomed.