Are you looking for examples of marketing strategies, which are followed freely in all over the world. When the organization decides to target the entire market, then it adopts one of the marketing coverage strategies. But before selecting any particular strategy, the organization must properly Segment the Market. For this purpose, there are certain factors that should be considered like
- Size of the segment
- Growth of the segment
- The structural attractiveness of the segment
- The objectives & resources of the organization
The current data about sales, expected profitability & growth rates related to the considering segments is collected and analyzed. The appropriate segments are identified that have the growth features & right size. But in fact, it is not much fundamental to focus only right size and growth factors for identification of potential segments of the organization.
The segments that are larger in size and rapidly growing are not beneficial for every organization. The organization that is smaller in its operations does not possess the required resources & skills to target larger segment and also the larger segment would become highly competitive for it. So the smaller organization tries to select such segments of the market that are less attractive & smaller in size.
The influential structural factors need to be properly examined that affects the attractiveness of the segment in the long run. For example, if there are a number of aggressive & strong competitors in a segment, then that segment is considered to be less attractive. The prices & profits in a segment are limited by the presence of the substitute products in that segment. The attractiveness of the segment is also affected by the relative power of the customers. The profitability of the seller is affected by the strong bargaining power of the customers who can influence the prices of the products & competition among sellers. The powerful suppliers in a segment can also make that segment less attractive for the organization.
The organization should also consider its resources & objectives in relation to the focusing segment. Even if a particular segment has the suitable size, growth opportunity & structural attractiveness, but still it can be harmful for the organization in such a way that the organization has not possessed the proper resources along with the non matching objectives. The organization should ensure the required skills & resources before finalizing any segment as a target.
Examples of Marketing Strategies
After the segments are identified, then the organization searches the effective marketing coverage strategies. Following are the few examples of marketing strategies. On the basis of these examples of marketing strategies, you will be able to survive in the market.
- Undifferentiated Marketing
- Differentiated Marketing
- Concentrated Marketing
Below is the detail of each and every examples of marketing strategies. You should be aware of them all.
- Undifferentiated Marketing:
The undifferentiated marketing is also called mass marketing. In this example of marketing strategies, organization does not consider the segmentation part rather it target the whole market with single offer. The common needs of the customers are focused in mass marketing strategy rather than the difference aspect of the customers. So a single product & marketing program is designed by the organization that can attract a larger number of customers on the basis of their similarities. The qualified image of the product is planted in the minds of the customers with the help of mass distribution & mass advertising. The modern marketer does not consider the undifferentiated marketing strategy as appropriate because it is quite hard to develop a single product that can fulfill the demands of all the customers. Another harmful aspect is that the organization which is adopting the strategy of mass marketing faces severe competition with the organizations that are effectively satisfying the demands of customers through differentiated marketing.
- Differentiated Marketing:
In these examples of marketing strategies, the organization selects more than one segment and develops different products & marketing programs for each segment. For example the General Motors develop & offers different cars for its different selected segments. In fact the different offering products & marketing programs result in higher sales along with the strong image in the market. Moreover, when every segment is served with a different set of products, the entire sales of the organization is much increased as compared to the mass marketing in the entire market. Most of the larger organizations are adopting this useful marketing coverage strategy. Besides the benefits of differentiated marketing, a serious disadvantage of this strategy is that it results in increased cost for the organization. It is quite expensive for the organization to manufacture 5 different kinds of product as compared to 25 products of the same kind. Moreover the extra marketing research, sales forecasting, channel management, promotion planning is required in the shape of different marketing plan for different kind of product. The distribution & advertising costs are also much higher. So the organization should carefully make the decision of the selection of the differentiated marketing strategy.
- Concentrated Marketing:
Marketing coverage strategies include concentrated marketing in which organization selects one or two smaller segments of the market. The organization which has limited resources adopts this strategy by selecting the smaller segments that can be effectively served with the available resources & skills. The newly operating organizations that are smaller in size get the most benefit from concentrated marketing by effectively competing with the larger organizations in the market. The small organization selects one or two sub-segments or niches that have attractive for larger organizations & it not made an effective & a complete analysis of that selected niche. Then it develops its special products that can best meet the demands of those selected segments. In this way the smaller organization maintains a strong brand position in its serving segments. But the main drawback of concentrated marketing strategy is that a high portion of risk is associated with it.