The conventional strategy has been to use Your Income Profits Review various advertising media such as TV commercials, newspaper ads, direct mail advertising, radio commercials, etc. All of these methods require a lot of money up front to produce and distribute. Their focus has been on getting the buyer to look in the direction of the product and create a need in the potential customer to buy their product. Cluster marketing strategies are used to define which media will be used to advertise the product and where the product will be sold.
Let's look at an example where advertisements are created for the newspaper and direct mail advertising. These are two of the oldest methods still in use. They both use printed media and are the easiest conventional advertising methods to produce. In a small town, using both methods might be excessive because statistics have shown that in most small towns the majority of people subscribe to the local newspaper and newspaper ads are cheaper to produce than direct mail advertising. In larger cities, however, both methods would be needed to cover the whole city since the number of subscribers to the local newspaper are substantially less as to the size of the population. In this example, the parameter of the number of newspaper subscribers is also used in the marketing plan.
Cluster marketing strategies analyze the target market using diverse combinations of geography, population densities, and personal parameters to develop geographic areas of interest. In marketing, these areas are referred to as clusters or groups of interest. The clusters are identified so that either single or multiple target markets are used for the advertising plan. Clusters (geographic areas) that have the same target market potential can be geographically close or hundreds of miles apart. With today's mass communications the distance doesn't matter to the modern marketing executive's plans.
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