Difference between Undifferentiated, Concentrations and Differentiated Marketing
The planning a target market strategy consists of choosing the proper approach and selecting the target market. A firm may select undifferentiated marketing, concentrated marketing or differentiated marketing.
i. Undifferentiated Marketing (Mass Marketing):
The firm tries to reach a wide range of consumers with one basic marketing plan. These consumers are assumed to have a desire for similar good and service attributes. Henry Ford, sold one standard car at a reasonable price to many customers. The Original Model T had no options and came only in black. Undifferentiated marketing maximises sales.
ii. Concentrated Marketing:
The firm concentrates on one group of consumers with a distinct set of needs and uses a tailor-made marketing plan to attract this single group. Concentrated marketing can let a firm maximise per unit profits, but not total profits, since only one segment is sought. A firm with low resources may vie effectively for specialised markets. Shree Leathers, Shoe maker in Kolkata targets middle class customers segment for all of its shoes.
iii. Differentiated Marketing (Multiple Segmentation):
Differentiated Marketing enables a firm to appeal to two or more distinct market segments, with a different marketing plan for each. It combines the best aspects of undifferentiated marketing and concentrated marketing.
Firms may use both mass marketing and concentrated marketing in their multiple segmentation strategies. Microsoft has complete lines of software targeted separately at final consumers (for home use) and organisational consumers (for business use).
P&G, a leader in laundry detergents has various brands such as Tide, Bold, Drift, Cheer, Gain, Ivory Snow & Ariel. Multiple segmentation lets a firm diversify and minimise risks because all emphasis is not placed on one segment. Indian auto makers like Maruti-Suzuki and others are also pursuing multi-brand strategy
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