A simple explanation would be, the former is trying to reach as many people as possible, while the latter is only trying to reach a specifically defined and profiled people. There is actually no right or wrong in using both types of marketing. One is not better than the other, they are both effective in their own ways and will actually be better in different businesses and/or different purposes.
For Mass Marketing, the content has to be constructed in the most basic form so that the message can have the broadest appeal possible and may become “out of point” for certain groups and blur to the real group of people that you are trying to reach. Mass Marketing can be very expensive as the distribution of high volume even at a low rate. There are actually networks that you can tap to reduce certain distribution costs but generally, the percentage cost can be a few times more than then actual print prices.
Targeted Marketing, on the other hand, allows great flexibility and profiling in the use of databases. Targeted marketing allows you to clearly define your unique value and seek to engage your audience in a personal and effective way. Essentially. your strategy and planning must be comprehensive, great design, a clear message and not forgetting a fantastic copy. It also means more time may be required to create and construct specifically targeted campaign to achieve the results you desire. The number of prints that required to be distributed is much lesser than what Mass Marketing employs, yet the per piece value of mailing and the low print quantity will cost the per piece value of print to be much higher, but the total cost will usually be lower.
Either method can be effective taking into consideration, either way defining the target market, getting the message right and being consistent will produce results.

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