Differentiated marketing strategies can also use different messages in the same campaign for different segments. What do you want this segment to remember about your product? Geodemographics - helps marketers develop marketing programs tailored to prospective buyers who live in small geographic regions, such as neighborhoods, or who have very specific lifestyle and demographic characteristics. This is why small businesses which spread their marketing materials are some of the most known brands in a market. In addition, undifferentiated marketing campaigns come with lower costs for advertising and marketing due to their broad focus, thus saving even more money. Consider the personality types that describe segmented Porsche buyers.
It has a narrow product line which leads to low advertising cost. Companies following undifferentiated targeting strategies save on production and marketing costs. This type of mass market ad would go into several different types of magazines and would target more than one segment of the population. Instead the firm adopts one marketing strategy and hopes that it will appeal to as many people as possible. Mass marketing through signage can happen virtually anywhere. Concentrated Marketing Strategy A concentrated marketing strategy is targeted to one specific market segment or audience.
DeShon looks at the sale for the last five years and calculates a growth trend. Examples of the Two Strategies To better understand differentiated, concentrated and undifferentiated marketing strategies, it helps to look at an example from each perspective. Mass marketing aims to reach the largest audience possible, and exposure to the product is maximized. Usually, this is not good all the time because consumers can know your business as the one with most flyers. Organizations using this technique strive to generate a strong local presence, and targets may include any person or organization within that small area. Disadvantages of Undifferentiated Marketing As undifferentiated marketing strategies put all their metaphorical eggs in one proverbial basket, and they are therefore inherently vulnerable to changes in the marketing environment.
Advances in mass media during the same period contributed to the spread of undifferentiated mass marketing. How much is too cheap? Or, they may choose to start making organic cat food or gerbil food. Companies and marketing professionals use a variety of marketing strategies to effectively convey a message or promote a product or brand. History of Undifferentiated Marketing Undifferentiated marketing came to prominence concurrently with the emergence of mass production in the late 19th and early 20th century, as factories specialized in building large quantities of a single, undifferentiated product. The targeting strategy is where the marketing mix comes together to create the right offer and marketing approach for each target segment. While the latter method may target a more preferable market segment, former it embraces scatter shot philosophy without any specific targeting or research involved. The company uses one marketing mix for the entire market.
Local marketing is a targeting strategy focused expressly on a small, clearly defined neighborhood or geographic area. In theory, this would directly correlate with a larger number of sales or buy-in to the product. Customer and product knowledge are the building blocks of any successful business. Niche expertise that gets this chain of events started because expertise is at the heart of value. Concentrated marketing typically requires limited resources and capability, as it rarely involves mass advertising. It can also be cheaper because the firm is not targeting multiple market segments.
Product Placements Billions of dollars are spent every year to place products where people will see them. However now that Coca Cola has introduced other products, it has changed its marketing strategy to Differentiated Marketing. The main benefit of undifferentiated marketing is that it does not require as much focus and research to identify the tastes of individual market sections. It views the market as one big with no individual undifferentiated marketing is more commonly referred to mass. At its very core, undifferentiated marketing has no concern for a target demographic or meeting any specific needs. The firm will develop a product that caters for the needs of that particular group. What makes online marketing so unique is its ability to reach targeted audiences with a high reach.
An airline company offering first segment 1 , business segment 2 and economy class tickets segment 3 , with separate marketing programmes to attract customers for each of the ticket types is an example of differentiated marketing strategy. A target market is a group of people or organizations for which the organization designs, implements, and maintains a marketing mix to meet that group's needs. For a large company such as Kraft, the cost of this kind of marketing is well worth it, since its products are sold all over the world. Recently jack has been working with a sales representative from a computer software firm about a contract for new gram to process the firm's billing statements. Advantages Professors Nancy Bull and Gregory Passewitz of The Ohio State University point out that a differentiated marketing strategy can build brand loyalty resulting in a higher percentage of repeat purchases because it addresses the unique needs of each consumer segment. While mass-marketing tactics tend to be costly because they operate on a large scale, this approach yields efficiencies and cost savings for companies because it requires the marketing team to execute only one product offer and marketing mix.
Positioning assumes that consumers compare products on the basis of important features. Example Another example is McDonalds, they have developed unique menus for local consumers in many countries of the world. Online Paid Advertising One of the most common ways that businesses use undifferentiated marketing with online ads is through Google AdWords. One danger that such niche marketers face is attracting competition from larger organizations in the industry if they are very successful. The first firm in an industry sometimes uses an undifferentiated targeting strategy. Benefits of Differentiated Marketing Differentiated marketing is the default choice among small businesses, especially if they are hoping to grow. These campaigns can be used to promote everything from annual sales to new locations.