Selection of a suitable marketing strategy for market segmentation is a very deep process. There are three alternative marketing strategies and a firm can select any one of these strategies. Every strategy has its own merits and demerits and the selection of a particular strategy depends upon the size, nature, and requirement of the firm.
However, there are some factors which must be considered while selecting a particular marketing strategy.
These factors are as follows:
1. Financial Resources of the Firm
Financial resources of the firm directly affect the selection of a marketing strategy.
If a firm is not having sufficient resources, it may choose a concentrated marketing strategy.
2. Product Homogeneity
Homogeneity of products of the enterprise also affects the selection of marketing strategy.
If there is homogeneity in the products of an enterprise, undifferentiated marketing strategy may be selected and if the product of the enterprise is different, differentiated or concentrated marketing strategy may be selected.
3. Customer Homogeneity
The nature of customers must also be duly considered while selecting a particular marketing strategy.
If the tastes, habits, and attitudes of the mass of consumers are similar, the enterprise may select an undifferentiated marketing strategy.
If on the other hand, the habits, tastes, and nature of consumers are a differentiated or concentrated marketing strategy.
4. Government Policy
Every business and industrial enterprise has to follow the orders and instructions of government issued from time to time. Selection of marketing strategy for the enterprise is also affected by such orders.
For example, if the government has ordered for producing cheap varieties of cloth, it will be better for the Enterprise to select concentrated marketing strategy.
If there is no interference of the government in the affairs in the enterprise, differentiated or undifferentiated marketing strategy may be selected.
5. Marketing Strategies of the Competitors
Marketing strategies of the competitors affect the selection of the marketing strategy of the Enterprise to a very great extent.
If the competitors of an enterprise have selected differentiated marketing strategy, the Enterprise should also select the same type of strategy, otherwise, it cannot be successful. Targeting in marketing management.
6. Product Stage in the Life Cycle of the Product
Stages in the life cycle of the product also affect the selection of a marketing strategy for the enterprise.
There may be six stages in the life cycle of a product:
- Growth or Development
The selection of marketing strategy depends upon the stage of the product in its life cycle. If the product is to be introduced, undifferentiated marketing strategy should be selected.
If the product is at the start of growth or development, concentrated marketing strategy should be selected.
The differentiated marketing strategy would be better at the stages of maturity and saturation.
At the stage of decline, concentrated marketing strategy should be selected and at the stage of obsolescence, it would be better to stop production of the product.
Thus, now you know how to Select a Suitable Marketing Strategy for Market Segmentation.