Marketing strategies play an important role in the success of marketing efforts for an enterprise. Keeping in view the different characteristics of buyers, it becomes necessary for a marketing manager to determine his marketing strategies according to needs and characteristics of the buyers so that all the physical and human resources of the enterprise may be fully exploited and marketing objectives of the enterprise may be achieved.
There are three types of marketing strategies towards marketing segmentation –
- Undifferentiated Marketing Strategy
- Differentiated Marketing Strategy
- Concentrated Marketing Strategy
The details in this regard are as follows:
Undifferentiated Marketing Strategy
Undifferentiated marketing strategy concentrates upon marketing efforts in the total market.
Under this strategy, a single product is offered to the entire market.
In other words, all the customers are considered as one group and no change is made in the product. Exactly identical products are referred to each segment of the market.
The single marketing programme, identical advertisement, single-brand, similar look and uniform price are the main characteristics of this strategy. For this reason, this strategy is also known as market aggregation.
Avery important characteristics of this marketing strategy are that the enterprise adopting this strategy do not believe in multiple demand curve for the requirements of all the customers and to prepare a single marketing programme which may attract all the customers.
There are some examples of market aggression, such as soft drinks, milk, certain automobiles and resort services.
Advantages of Undifferentiated Marketing Strategy
A firm adopting this marketing strategy get the following advantages:
- Market aggregation enables a firm to produce a large scale at large scale. Large production of offers various economics.
- It enables the Enterprise to adopt the theories of standardization, specialisation, and division of work.
- There is no need of preparing different marketing programmes and policies.
- It enables the firm to make the maximum possible utilisation of its resources.
Disadvantages of Undifferentiated Marketing Strategy
Drawbacks of undifferentiated marketing strategies are as follows:
- It is not a consumer-oriented strategy. It concentrates only upon the product.
- The effectiveness of this strategy in the modern consumer-oriented markets is very doubtful because all the consumers can never be of the same tastes and attitudes.
- This strategy may be successful in short-term but in the long-term, its success is always doubtful.
Differentiated Marketing Strategy
Market segmentation, as already discussed, means the division of marketing to several homogenous groups based on common characteristics of consumers.
Under the differentiated marketing strategy, the total market of the enterprise is divided into several segments and different products are offered in different segments.
For these reasons, this strategy is also known as market segregation.
Under this strategy, different programmes are prepared, different adverting in campaigns are launched, different methods of sales promotion are adopted and different policies regarding price, packaging, etc. are adopted.
For example, a shoe market can be divided into several groups, such as shoes for Businessman, executives, professor, students, etc or on the basis of gender such as shoes for ladies, gents and children, etc.
The importance of this strategy is that it offers different products in different manners to different consumers so that maximum sales may be made, maximum profits may be earned and maximum satisfaction may be provided to the consumers.
Advantages of Differentiated Marketing Strategy
Differentiated marketing strategy offers the following advantages to the enterprise –
- It is a consumer-oriented strategy.
- It attracts the maximum number of consumers from all corners.
- It maximizes the sales of the enterprise.
- It maximizes the profits of the enterprise.
- It provides maximum satisfaction to the consumers.
Disadvantages of Differentiated Marketing Strategy
Disadvantages of this strategy are –
- Different products are to be produced for different segments of the market.
- It requires intensive marketing research.
- Different marketing programmes and strategies have to be prepared for different segments.
- It increases the cost of marketing research, product planning, product development, physical distribution, advertisement, promotion, management and administration substantially. This strategy is useful only for the firms producing a large scale.
Concentrated Marketing Strategy
Concentrated marketing strategy is quite a different strategy. It does not concentrate on marketing efforts in the total market.
It concentrates upon some selected segments of the market.
Under this strategy, the efforts are made to discover the market segments in which the products of the enterprise can be sold and all the efforts of the enterprise are diverted and devoted to these segments.
It is believed that wholehearted concentration upon some selected segments of the market May produces better results than half-hearted efforts in the total market. 10 Major Factors Affecting Pricing of Product (Explained).
Concentrated marketing strategy is widely used in India, particularly by publishers. A publisher generally concentrates on publishing the books either in some selected subjects or for a selected standard.
Advantages of Concentrated Marketing Strategy
Advantages of concentrated marketing strategy may be described as follows:
- It provides the best possible satisfaction to the consumers.
- It makes the maximum exploitation of the resources of the enterprise.
- It decreases the cost of production, management and administration substantially.
- It makes it possible to earn the maximum profit with limited resources of the Enterprise.
Disadvantages of Concentrated Marketing Strategy
Disadvantages of concentrated marketing strategy may be described as follows:
- This marketing strategy is very risky because it wrong segment is selected the existence of the firm itself is endangered.
- It increases the possibilities of competition.
Thus, now you know all types of Marketing Strategies Towards Marketing Segmentation.