Companies and marketing professionals use various marketing strategies to convey a message or promote a product or brand effectively. Depending on your products, you can determine and segment your audience depending upon the similarities of your products.
Following the segmentation, the next step will be targeting the audience. Targeting includes selecting a segment of your marketing messages to convert your audience. Many companies regard this approach as a strategy to achieve a successful outcome.
Companies may choose several marketing strategies that resonate with their message to market their products effectively. Companies use multiple marketing techniques to implement a successful marketing campaign. Differentiated marketing is an important marketing strategy that we discuss below.
What Is Differentiated Marketing?
Differentiated marketing involves creating product and marketing campaigns that target specific market segments. Many high-profile manufacturers follow these steps. It caters to a particular and differentiated customer. They provide a differentiated solution in quality, exceptional services, and unique features.
Different marketing provides different advantages. The technology enables companies to reach more customers with more investments in a niche and generate revenue. You can aim to expand your consumer reach to commuting professionals by diversifying your offerings.
Differentiated Marketing Versus Concentrated Marketing
A differentiated marketing strategy appeals to at least two target groups, while a concentrated marketing strategy targets one. Concentrated sales are when an individual company targets a targeted audience by offering a specific offering that is typically not attractive to another audience. A concentrated marketing strategy targets one specific market segment or audience.
For example, when your hydrants target older people, you will use a marketing campaign targeting a specific niche, but fewer young people are likely to buy them.
Shoe companies often create campaigns that appeal to men and women in various age groups. Differentiated marketing strategies can also use different messages in the same campaign for different segments.
Concentrated marketing strategies are often geared for smaller groups because companies design them to appeal to a specific segment. Differentiation marketing strategy aims for multiple products and services within a specific market segment but uses a single focus.
Say the same company is making soap for kids. Maybe the brand differs in its focus and targeting this market segment. Differentiated advertising refers mainly to differentiated products or service offerings.
Differentiated Versus Undifferentiated Marketing Strategies
Differentiation in marketing strategies has varying consequences in some ways. Organizations use differentiation marketing strategies to create campaigns that target two distinct customer segments. One example of differentiated marketing strategies is shops promoting sales that target two age groups.
In addition, this method uses different messaging in one campaign for different targeted audiences. In this way, a brand might be marketing a low-cost product to an affluent target market. Basically, in an undifferentiated marketing strategy, marketers use the same message for all market segments.
Undifferentiated marketing is similar to mass marketing; marketers typically create a message that appeals to everyone, so the message is often general or straightforward to allow more people to relate. Price points for products and services usually vary under a differentiated marketing plan.
Differentiated Marketing Examples
Examples of differentiated marketing strategies will help us understand its advantages and disadvantages. This strategy is more suitable and applicable to wholesale and retail businesses. Suitable examples are Maruti Sushi, which uses differentiated marketing and targets every segment.
A company must balance revenue generated from multiple segments to the associated costs. Microsoft and Hyundai tend to cater to other segments. However, they don’t appeal to all segments at once. Often restaurants target college students as well as families. Restaurants can offer students low-cost menus. Similarly, it can attract children and families with wholesome meals.
Customization and marketing for each consumer group are very cost-effective. Different versions and variations of products can be more expensive for researchers than for one product. The company has advised that it is essential to market its products to appropriate audiences to promote and increase sales. This step is also critical in creating a successful marketing campaign.
Effective Resource Allocation
In each industry, consumer requirements and preferences vary significantly. Depending on customers’ requirements and preferences, the company has a more efficient way of using available resources to manage its resources. In this way, companies are better prepared to meet all marketing goals and achieve them.
Companies can easily target niche markets where competitors’ offering doesn’t meet customer demand. Companies that provide better offers will generate the maximum profit potential.
Why Do People Prefer Differentiated Marketing?
Companies can choose from two different strategies: differentiated and undifferentiated marketing. The former adds specialized aspects with a broad appeal to its products or services, and the latter develops a product that appeals to a niche market. When a company focuses on a market differentiated strategy and segmentation is based on customer needs and preferences, it’s easy to allocate available resources effectively.
Expanding Customer Reach With Focus
Marketing campaigns require more investment to reach the mass market. Some firms provide services to people with diverse demographics. This trait makes them different from other brands. A diversified advertising approach can solve these problems. Using a new marketing technique, you can reach a specific audience. You can reach customers you never had before.
You Diversify Your Risk
Diversifying risk can make a big difference at the company level. Your business changes might surprise you. Sometimes a business model may not have been viable. In this situation targeting multiple markets could prove beneficial for businesses. A differentiated marketing program allows for the most effective results in the segment. You may maintain revenues in segment A when segment B collapses. Your business has to meet two kinds of customers.
It Helps Businesses Gain A Competitive Advantage
The best strategy to stay on top of competitive businesses must remain competitive. Having a niche audience helps you to innovate. Market research is also helpful. If you target a specific market segment, you can better meet specific needs. It takes time to research one particular niche to understand what the consumers need most. If you want to improve a business’ product/service, you need to use an adapted marketing approach because your target audience is more targeted.
Increased Sales Revenues
If your company is ready to market to an extensive range of customer segments, one could anticipate being an expert in this market and increasing sales.
It’s easier to grow sales in the right niche. And differentiation allows this. It is also easier to build brands in a niche than in a large-scale market. Alternatively, you could target a bigger audience.
Crafting A Killer Differentiated Marketing Strategy
Developing an individualized marketing plan won’t suffice. You have to know how to create and execute a strategic plan effectively. But companies must do it in time to achieve that goal. It’s not enough to conduct market research. Ultimately companies should take the marketing decisions. You must put yourself on the shoulders of a client.
Differentiated marketing involves appealing to a specific market segment. Therefore you need an overall marketing program.
Narrow Your Target Markets
You can begin by identifying the target market of your business. List some key traits, including age, position, income level, or additional demographic details to help determine the characteristics of a specific market group. The further you define an individual market, the faster you develop specific products for each group.
Identify Promotional Outlets
After identifying your customers and understanding how to satisfy them, choose the promotional medium that best suits your market groups. For example, if you want to promote and advertise on social media platforms to your target audience, creating marketing material for those platforms may take a while. You can also find out where to place your advertising materials so that you can better prepare your product for marketing.
Analyze the needs of each market
Describe your product or service needs in each market before starting any marketing campaign. You could also create customer surveys that ask the customers what they are interested in and why they want them. You can even use analytics to track customer buying behavior to help you understand how often your customers purchase certain items.
Provide Offerings For Each Group
Once the market is determined, your product or service can be tailored to suit the specific market. Knowing these facts, you can build more natural or organic products for these groups.
Distribute Marketing Materials
Develop advertising for any platform and distribute to those you want them. You also have the option of creating social media ads for blog posts if you want to educate customers about your business. Do you need help finding your target groups? Reach out to Kennected, where you can witness a firsthand demonstration of our number one Sales Enablement Platform KennectedReach. The product quality is unbeatable as it will use various strategies to find ideal customers with a detailed approach.