In this article you will learn about target marketing strategies that is Undifferentiated, Differentiated, Concentrated Marketing in detail with the help of examples.
Target Market
A target market is a group that has been chosen because of similar characteristics like age, income, and lifestyle as the most potential customers to purchase a product.
A target market is a group of customers the business chooses to serve to and who have similar needs or characteristics.
The firm must take into account three key factors when comparing various market segments to determine which is the best one for the product in order to determine the most effective market targeting strategies for the company.
Company objectives and resources: The organization’s objectives should be in line with the output of the target market segment, and its resources should be able to meet that market segment’s needs.
Segment Size and Growth – The market segment’s size should be consistent with the organization’s capacity for production and its traits for development. The market sector must accommodate growing capacity, and the organisation must be able to manage that capacity.
Segment structural attractiveness – The company should assess the market segment’s long-term attractiveness.
There are three key target market strategies that can be used by the companies.
- Undifferentiated Marketing
- Differentiated Marketing
- Concentrated Marketing
Target Market Examples
Let’s look at some well-known companies that have excelled at target market analysis. Due to their intense focus and targeting, they have located their ideal customers from all over the world.
Nike
Athletes and anyone who participate in sports can purchase Nike’s clothing, gear, footwear, and accessories. Because of the high cost of their goods and the fact that they are of high quality and durability, only those with sufficient disposable money can afford to buy them.
However, that is not the only information regarding their intended market.
They concentrate on young aspiring runners and athletes, two groups that need on inspiration to continue pushing themselves over their natural limits.
And we see this in action in the majority of Nike’s marketing initiatives, where they produce inspirational commercials that have the power to bring viewers to tears.
Vans
Vans has built its business by attracting rebels and outcasts. Like Netflix, the business discovered that it was better to rely on what customers wanted and what was working than to rigidly adhere to its initial concept.
They discovered great success with their devoted clients by letting the target market lead them.
Netflix
Lessons from Netflix are more about their strategy for reaching their target market than about their actual target demographic, which is continually changing.
They meticulously deliver what their consumer wants after conducting ongoing audience research. Netflix has a reputation for leaning into its customers and changing course when necessary, transitioning from mail-in DVD rentals to a massive online streaming service.
They let word-of-mouth advertising to drive their sales as a result.
Lego
Lego is a well-known brand all around the world, and for good reason: although kids utilize their products, parents are the ones who purchase them.
Lego’s whole marketing strategy was therefore based on pleasing the parents. Not only that, but Lego also formed partnerships with companies, motion pictures, and video games that enjoy cult-like followings, solidifying its position in the imaginary world that many kids like to retreat to.
Lego become a multibillion-dollar company by comprehending its target market and potential sales barriers.
Dior
Dior is a premium brand that distinguishes itself via its high price and cutting-edge style. They very simply found their extremely niche audience by differentiating themselves with such a niche brand.
However, it wasn’t their special selling point that made them so prosperous. They succeeded by portraying themselves as exclusive in their marketing.
They tailored their marketing strategies to the types of people who would enjoy their items by having this understanding.
Coachella
The fact that performers from various genres perform at Coachella shows that it truly is a festival for everyone.
And the hipsters, who take great satisfaction in being original carbon copies of everything cool, ate that offer up in no time. Hipsters paved the path for the Coachella marketing effort because they served as the festival’s main market.
To further strengthen their position in the hearts of hipster millennials, the company began collaborating with other brands that hipsters frequently contact with, such as H&M and YouTube, and eventually turned itself into a multi-million-dollar annual festival.
Undifferentiated Marketing
A company may opt to ignore the differences between market segmentation and target the entire market with a single offer by employing an undifferentiated marketing strategy.
This kind of marketing strategy is centered on the products that may meet the wants of consumers who share similar needs. There is no uniqueness or specification for the product.
The business creates a product and a marketing strategy that appeal to the most potential customers. To create a favorable impression of the product in people’s minds, it relies on quality, mass distribution, and mass advertising.
Undifferentiated Marketing strategy is also known as the Mass marketing strategy.
Benefits of Undifferentiated Marketing
✔ provides cost economies.
✔ narrow product line keeps down production, inventory and transportation costs.
✔ advertising program keeps down advertising costs.
✔ lowers the costs of market research and product management.
Disadvantages of Undifferentiated Marketing
❌ challenging to create a brand or product that would appeal to all consumers.
❌ heavy competition in the largest segments.
❌ larger segments may be less profitable due to competition.
❌ erosion of the mass market.
Examples of Undifferentiated Marketing
Any commonly used product with a television ad is likely utilizing the undifferentiated marketing strategy. Below are some brands that are using undifferentiated marketing strategy.
1. Colgate
A multinational corporation called Colgate sells a variety of dental hygiene goods, including toothbrushes and toothpaste. To appeal to its many target audiences, the corporation has created a variety of items in a given category. You may create toothpaste for sensitive gums or teeth whitening, for instance, using benefit segmentation.
But everyone uses their most widely used and well-liked products. Their marketing strategy tries to appeal to a broad spectrum of consumers for such all-purpose products. In order to accomplish this, they naturally employ a undifferentiated marketing strategy.
2. Coca-Cola
Coca-Cola is an example of a brand with widespread appeal across borders or across different customer segments. The 1892-founded international corporation continues to dominate the market for carbonated soft drinks. The business continues to rule the market after so many years due to its successful mass marketing strategy.
If you’ve ever seen a common Coca-Cola ad, you’ve probably noticed how generic and unspecific it is. Given that they sell a record quantity of their products each year, this strategy has been successful for them.
3. M&Ms
Another example of undifferentiated marketing is M&Ms. Their advertisements make it clear that they are trying to appeal to a broad range of customers rather than a particular customer group. They make sure to not target any particular segment while still being compelling in their very generic yet creative advertisements.
4. Cadbury
Large international corporation Cadbury sells confectionery products. The Coca-Cola competitor has a broad market appeal, assist consumers, belong to different gender, age, and socioeconomic groups.
Everyone like Cadbury’s products, and their market strategy reflects that. Through its advertising, the business disproved the myth that chocolates are solely appealing to children. Nowadays, people of all ages love their delicacy. Therefore, Cadbury attempts to represent this in their marketing strategy.
Differentiated Marketing
A company chooses to target many market segments using a differentiated marketing strategy and creates unique offerings for each. It seeks to increase sales and strengthen its position within each market segment by providing different product and marketing offerings.
Generally speaking, differentiated marketing generates higher overall sales than an undifferentiated marketing strategy.
It is also known as the segmented marketing strategy.
Benefits of Differentiated Marketing
✔ Reach a wider customers.
✔ Create and market products to satisfy the needs of two or more market segments.
✔ Achieve customer diversification.
✔ Achieve a competitive advantage.
✔ Boost profits
✔ Build strong brand identity.
✔ Caters To A Variety Of Customer Demands
Disadvantages of Differentiated Marketing
❌ High costs
❌To produce products, various research and development skills are needed.
Examples of Differentiated Marketing
Nike is among the top brand names to use as an example of differentiated marketing.
Nike is a sports and lifestyle company that produces a wide range of goods and services for different customer segments.
Their differentiated marketing approach enables them to be more relevant, attract people to various products, and build brand loyalty across various market sectors.
For instance, Nike will run marketing campaigns that target track and field enthusiasts with messages and products that are more appropriate for their love of running.
To appeal more immediately and be more pertinent, they might talk directly to their ambitions, fears, challenges, and goals.
Similar to this, they’ll launch advertisements with distinct targeting for, say, football fans.
These advertisements will, once more, be more pertinent and take into account the football fans’ athletes, environments, interests, and desires, which are frequently very dissimilar from those of other target categories.
Concentrated Marketing
When a company’s resources are constrained, concentrated marketing is particularly appealing. The company targets a significant share of one or a few submarkets rather than a small share of a large market. It I s a solid strategy for startup small firms to compete with bigger rivals.
The company intends to build brand loyalty among its consumers and gain a significant market share through targeted concentrated marketing.
The company intends to gain a deeper understanding of the demands of the consumer and deliver precisely what they are expecting from the product by concentrating on one or a few niches.
It is known as Niche marketing.
Benefits of Concentrated Marketing
✔ strong market position in the segments
✔ easily implemented by small businesses
✔ earn a high rate of return on its investment.
Disadvantages of Concentrated Marketing
❌Involves higher than normal risks.
❌It can be challenging to build a huge consumer base.
Examples of Concentrated Marketing
Concentrated marketing is already helping companies prosper. Here are 5 instances of success to illustrate this.
1. Rolls-Royce
The luxury car maker Rolls-Royce employs concentrated marketing to connect with customers in more than 120 countries across the world.
The target market for the brand is people with at least $30 million in liquid assets because of its reputation for excellent quality and expensive costs.
The practice of delivering individually written letters to customers is one marketing strategy that Rolls-Royce has mastered.
2. Munchkin
The infant and toddler product company Munchkin, established in 1991, uses concentrated marketing to appeal to the parents of these particular age group
They often contribute parenting-related pieces to their blog, which is one of their effective marketing strategies.
In addition to incorporating mobile-friendly strategies for parents who are busy and continuously on the go, the brand makes it simple for parents to look for their items online.
Additionally, they collaborate with parenting influencers that use sponsored material to promote Munchkin products.
3. Rolex
Rolex, a well-known watchmaker, develops numerous advertising campaigns to appeal to its target market.
These advertisements feature well-known and well-respected athletes and artists wearing Rolex watches who accurately represent the market segment of powerful, prosperous, and career-minded consumers.
4. Justice
A clothing brand called Justice has shops all throughout the US and Canada that cater to girls between the ages of 6 and 12.
The brand decides to stick with a concentrated marketing strategy to reach their target audience. Justice focuses on the kids themselves, as opposed to Munchkin, which is more concerned with the parents.
This market segment is the focus of every Justice promotion and marketing strategy, including their mobile app, Live Justice.
Justice provides the girls with a range of activities inside the app, including tests, games, wish lists, and various free content.
The girls can find and discuss methods to make the world a better place by using the app as a community place.
5. Omega
The world’s best and highest-quality watchmaker, Omega, use concentrated marketing by featuring their target customer, the well-known golfer Rory Mcllroy, in an ad.
Mcllroy is a popular, successful, and attractive man who has a passion for many different businesses and sports. He thus describes the group of people who balance work and family as his target audience.
