Target marketing strategies have become the need of every business today in this globalization. Gathering up customers for your new product is one thing and making them get the right idea about your product is another. Well! Both are equal in terms of importance and at the same time, both of them are pretty much dependent upon the type of market you choose for promoting your product.
Once the choice is made, then it’s time to start working on the target marketing strategies that would let you focus on results while doing all the work. We are surely going to cover up those four strategies that can take your business ahead of your competition, but before that, we need to make sure that you know about the true importance of targeting a market.
The main objective of the evaluation of market parts is for making the decision of choosing the correct theme to target. The target market is, then, what decides the level of competition your brand is going to face and whether or not, the brand can take down that competition. Moreover, the type of marketing mix as well as the rate at which success is achieved is also dependent on it.
Diversification Strategy Definition | Types of Diversification Strategies
Types of Target Marketing Strategies
- Undifferentiated Marketing
It’s a mass-market philosophy based strategy that comes in handy when you know that putting forward a common product for all customers’ types. It won’t affect the popularity of your product but can, definitely, let you overcome the costs needed for setting up a separate marketing mix for each target market. Under such conditions, a brand starts developing a strategy that covers up the whole market and is totally free from segmentation.
This strategy is a default set weapon in the arsenals for most of the newly starting companies who lack customer knowledge as well as the concept of orienting the strategy, which is helpful since you have to go for a single product for whole your customer base.
Undifferentiated target marketing strategies make the adapter think the whole segmented market to be just like one big market in which there are no individual segments. The strategy makers assume that the expectations of all the individual customers can be covered up with one kind of product. So, that’s how companies save a lot of in marketing as well as in the production of their product.
The most common example of this strategy that you witness in your everyday real life is the company that promotes commodity products and that, too, where there is slight no competition. Because of the absence of a worthy competitor, the company doesn’t feel the need for production promotion according to customers’ tastes. Yet another example is Ford’s classic Model T.
The main downside of going with this strategy is that it exposes your brand to stronger competition in the near future. Moreover, the level of danger from those competitions grows as quickly as they focus on even smaller segments.
- Multi-Segmented or Differentiated Marketing
Differentiated marketing picks up the pace right there from where the undifferentiated marketing leaves you. One of the most sought after strategies that can bring the effectiveness of your brand back to life by letting you plan your marketing mix while keeping the segmentation of the market in your mind.
Even though, the costs involved in the generation of greater product design, its production at a huge level, the promotion in the market, management costs as well as the research as pretty enormous, but at the same time, the refined strategy makes it easier for the brand to achieve huge profits, generate more sales as well as to focus on a larger market share and all these can cover up the costs effectively.
The car market is what makes use of this strategy a lot. Obviously, the car market is segmented at different levels like sports cars’, luxury cars’ and small cars’, as well. So, going for a different kind of strategy for every different segment of the market becomes extremely necessary. Ford, Honda, Toyota and many others offer their cars for every level of the segmentation.
It is important to understand the importance of other target marketing strategies and your reason for prioritizing this one, in comparison to others. Because no one wants to lose its customer, base to “cannibalization”.
- Concentrated Targeting
Serving up all the segments of the target market is not necessary, most of the time. For the purpose, the company puts its research about the segment to its advantage and establishes a marketing mix, which is focused on that particular segment. It is a fact that concentrating the efforts and resources on a particular segment proves to be more fruitful than investing in a wide niche.
This strategy is well-suited to the companies with a relatively lower number of resources. On the other hand, the organizations at the upper level may not think it to be necessary to spend their time spending both time and money on just one segment of the market. The most note able example of the brand that made use of this strategy for carving out success for them is Starbucks (a leading coffee company).
The prime downside of the concentrated targeting strategy is that if smaller niche workers are successful in attaining recognition in that particular field then they are giving an invitation to a competition that takes larger organizations in. Moreover, it feels just as if someone is putting all of his eggs in just one basket. So, unfortunately, if that segment becomes unprofitable, the brand will lose a huge lot of it.
- Customized Marketing
Such target marketing strategies take the segmentation at a more refined level, the individual level. Companies at such level study the behavior patterns of their potential customers and devise a separate solution for each of the customers.
The companies deal face to face with their customers and serve them with what the customer needs. The most common type of businesses that make use of this strategy is often research firms, advertising, architects and many others. This marketing leads to an even closer relationship with the segments as compared to focused targeting.
Hello everyone! This is Richard Daniels, a full-time passionate researcher & blogger. He holds a Ph.D. degree in Economics. He loves to write about economics, e-commerce, and business-related topics for students to assist them in their studies. That's the sole purpose of Business Study Notes.
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