Differentiated marketing focuses on a specific market , a “different” market , that is interested in buying a certain type of product. For example , a business selling organic dog food is looking to target a specific type of person – a health conscious, animal loving and eco-friendly individual.
Undifferentiated products can be defined as the intrinsically identical products (like milk, gasoline and packaged ice) which are easily substitutable by products from competitors or other suppliers. The Threat from substitution is very high.
The undifferentiated marketing strategy focuses on an entire target market rather than a segment of it. This strategy employs a single marketing mix – one product, one price, one placement and a single promotional effort – to reach the maximum number of consumers in that target market.
A concentrated marketing strategy is targeted to one specific market segment or audience. 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.
Examples of mass – market retailers include big-box stores such as Target, Sam’s Club, and Best Buy, as well as brands like Levi Strauss and Gap, and e-retailers like Amazon. Supermarket, drugstore, mass merchandise, and warehouse chains are all considered mass – market retailers.
Product differentiation is a marketing strategy that strives to distinguish a company’s products or services from the competition. Product differentiation goes hand-in-hand with developing a strong value proposition to make a product or service attractive to a target market or audience.
: not divided or able to be divided into different elements, types, etc. : not differentiated undifferentiated cells an undifferentiated mass.
The three activities of a successful targeting strategy that allows you to accomplish this are segmentation , targeting and positioning , typically referred to as STP.
A company can benefit from undifferentiated marketing in several ways. This marketing strategy does not require the same level of research into consumer tastes as other types of marketing. In addition, undifferentiated marketing allows a company to appeal to a much wider audience than other marketing strategies .
Differentiation strategy allows a company to compete in the market with something other than lower prices. For example , a candy company may differentiate their candy by improving the taste or using healthier ingredients.
Psychographic segmentation divides buyers into different segments based on internal characteristics — personality, values, beliefs, lifestyle, attitudes, interests, social class — so you can market accordingly.
A niche market is a segment of a larger market that can be defined by its own unique needs, preferences, or identity that makes it different from the market at large. For example, within the market for women’s shoes are many different segments or niches .
For example , Gucci, Hermes, Vertu, Burberry and Louis Vuitton are famous fashion brands that deal with customers personally. They make clothes and other products keeping in mind the taste of every individual . Matrimonial sites are one of the best examples of individual marketing .
It’s also known as location-based marketing , neighborhood marketing , or local store marketing . Local marketing can work for any brand that has a physical brick-and-mortar location, like shops and bars, or any locally -based businesses that travel to a customer’s location, such as plumbers and electricians.