For example, a company might market a product specifically for teenage girls, or a retailer might market his business to residents in a specific town. Segmentation refers to the process of dividing the market of consumers into groups based on one or more shared internal or external characteristics. When using undifferentiated target marketing, the firm has decided not to align its market offering to the needs of any segment in particular. 3. This study guide is a comprehensive discussion (along with many examples) of the key aspects of marketing as covered across various textbooks and study programs, Good targeting approach for commodity or other generic markets, A suitable when there is minor differences between segment needs. Marketing is a dynamic field implying that there is no one success formula using which company can market its products successfully and that is the reason why different products and markets require different marketing strategy on the part of the company. (4) It enables the organisation to utilise its resources to a maximum possible extent. As suggested by its name, firms adopting undifferentiated marketing do not differentiate between the different needs in the marketplace, and it can be defined as: Concentrated marketing can be defined as: With differentiated marketing, the firm has multiple market offerings that take into account the differentiation of needs in the marketplace. Quite suitable for generic markets (where the product is a commodity), Typically adopted by small firms just starting out (as they have limited resources and expertise), Can be very useful when there is little diversity of core needs between the defined market segments, May be necessary approach for firms with a limited set of capabilities and skills, A necessary approach for large companies wishing to protect their market share, This is a possible approach for large global companies that have strong offerings, (such as Apple with their iPad, which could be considered an example of modern day mass-marketing), Also used by niche marketers whose competitive advantage is their reputation and expertise within a well-defined, and usually quite small, market segment, A good approach from firms who have assets/capabilities that can be leveraged into other target markets, Typically a good /approach for small or emerging sub markets, where the development of multiple marketing mixes would not be viable, This may be a sensible approach if the organization is has had financial difficulties and needs to conserve resources, A necessary approach where there is a diversity of consumer needs across market segments. The term implies that you do something different in terms of product, price, promotion, distribution or customer experience for each target market. General Motors of USA concentrating on big cars and Volkswagon of Germany concentrating on small cars are other famous examples. These campaigns can be used to promote everything from annual sales to new locations. With the recent rise in online niche marketing, choosing between differentiated and undifferentiated marketing strategies is a bit like comparing apples to oranges. A concentrated marketing strategy is targeted to one specific market segment or audience. However, this strategy has certain demerits also. This is similar to mass marketing; marketers typically create a message that appeals to everyone, so the message is often general or simple to allow more people to relate. Micromarketing offers many benefits to companies who use this strategy. How Competitive Factors Determining Choice of Channels? Concentrated marketing strategies are often geared for smaller groups of people, because they are designed to appeal to a specific segment. Example: Also targeting families by communicating a promotional message about the importance of children learning history. All material copyright (2012-20) and for educational purposes only. It is an extreme case of target marketing under which firm selects only one or few segments as its target market. After the segmentation process is complete, the next step is targeting, which involves the tourism marketer's choosing a segment or segments to which to communicate the … It appeals to two or more distinct market segments, with a different marketing plan for each. Difference between Segmentation, Targeting and Positioning | Marketing, Undifferentiated and Differentiated Marketing, Difference between Public Finance and Private Finance | Economics, Difference between Internal Recruitment and External Recruitment, Difference between Human Resource Planning and Strategic Planning, Difference between Job Enrichment and Job Enlargement, Difference between Manpower Planning and Human Resource Planning, Difference between Training, Development and Education. (3) This strategy can be useful and successful only in short run. Advantages of Undifferentiated Target Market Strategy: (1) Market aggregation enables a firm to produce in large scale.