Marketing strategy is a well-structured, long-term plan that helps a business achieve its goals and take a position in the market. Each company offers some products of services, and those offerings are targeted for a group of people whom we call the target market. Marketing strategies are mainly prepared for that target market. Market targeting strategies can be of several types, such as undifferentiated, differentiated, concentrated (niche), and micro-marketing. It depends on a business how it wants to develop its target marketing, whether it wants to target the mass people, or separate markets based or characteristics or focus on only one.
What is Differentiated Marketing?
Differentiated marketing or multi-segment marketing is for two or multiple customer segments to which a business sends different messages for the same product and service based on each group’s distinct characteristics, such as age, income, gender, culture, etc. Here, the business splits a target market into some segments based on those factors. Then the business offers its products and service in a way that those can reach each of the segment’s touch-points. Segmentation can be toward one or two target market or towards several target markets. No matter how many target markets a business chooses, each of them will get different messages according to their particular needs.
Differentiated Marketing Strategy – Process and Development
Differentiated marketing will require some different processes as well to establish that kind of marketing strategy. So here’re some ways or steps on how a business can do that.
Understand the Business Situation
Identify how your business is doing and what the potential opportunities are. Differentiated marketing may require differentiated products/serviced as well. Measure the capacity.
Research the Buyer Persona of Each Segment
Carefully identify the buying preferences or buyer persona of each of the groups you’re going to target. Because only a proper analysis will help you to get the exact touchpoints of those segments.
Develop the Brand Positioning
A brand positioning helps a business to get a secure place on consumer spending preference. Plan a relevant business model that’ll help you to get the position on the market.
Define and Refine your Offerings
You’ve to be precise while doing differentiated marketing on the customer segments. Give them a clear perception about how you know their needs, and what you’ve exactly brought for their cravings.
Identify the Tools to Promote Differentiated Messages
You’ve to be more personal while promoting your differentiated messages to your target customer segments. Based on the characteristics, you’ve to provide unique customer experience to each group, whether through online or offline Media. That’s why be sure while choosing promotion tools if they’re capable of advertising personalized messages.
Explanation of Differentiated Marketing Strategy with Examples
Let’s look at how a business uses marketing mixes to implement differentiated marketing.
Product
A business can serve the same kind of product, but it has to be differentiated based on each group. Such as when a clothing store offers different types of dresses for children, men, women, older people, etc. we can say that the store is doing differentiated marketing because it has clothes for people with different characteristics and needs.
Price
Price can also be differentiated. In a restaurant’s menu, people may find both regular items with average price and premium or signature items at a higher price. Based on affordability, people will choose their preferred food items.
Place
When a fashion house opens its store in a different location, it sometimes uses differentiation. In places where people live on a fixed average income, the fashion house will offer products that match their affordability. But the same fashion house will offer different products at higher prices in a wealthy location. There won’t be any similarities in each of the store’s products because of differentiation, although both the shops are operated by one company.
Promotion
Promotion requires differentiation too. A gym that wants to attract both younger and older people has to use different promotional tools. It’ll put its ads on social media sites to attract younger people and on newspapers, flyers, or billboards to attract older people.
When should a Company use Differentiated Marketing Strategy?
A business must observe certain things before entering into differentiated marketing. First, you’ve to analyze the hype or acceptance of your niche. If you see it has the potential to reach a particular group, you can consider differentiation. Second, if you’re losing your competitive advantage on the undifferentiated market, you can shift it from there. At that time, you can simplify your offerings and start targeting a specific group of people. Lastly, if you want to increase your firm’s value and want a distinct reputation for your offerings, nothing will help more than differentiated marketing. Although, no matter what the situation is, having a clear idea and a proper plan is a must before making any decision.
Companies that Use Differentiated Marketing
There’re many famous companies that use differentiation marketing to promote their brands. Such as.
Starbucks
This Company positioned its outlets with the differentiated strategy. It has made people believe its shops as a “Third Place” that people can find as an essential place for their home and office. Also, Starbucks made its premium presence in both affluent and uneconomical locations where people can find their premium items based on the affordability.
LUSH
It’s a cosmetics brand like other popular brands such as Sephora, Etsy, etc. Still, its strategy is differentiated. LUSH sells handmade products. It targets people who are beauty conscious like all other brands, but LUSH focuses more on organic and inner beauty.
Maruti-Suzuki
This car brand sells every kind of vehicle, each targeted for a different group of people. Luxurious cars, business trucks, low-cost cars, everything you’ll find here for people with various characteristics and needs.
Samsung
This electronics brand has both high profile and low profile smartphones. A few years back, it even introduces a new mobile targeted for teenagers or the younger generation, which is the sign of their differentiation strategy.
Nike
This footwear brand is renowned for its trainer shoes. But it uses segmentation for trainer shoes as well. Whether you’re a runner, golfer, cyclist, or weightlifter, you’ll find your desired trainer shoes that are different from other kinds.
Bottom Line
Differentiated marketing is mainly focused on products and services that are different from daily necessitates. This kind of marketing is done for moderate to higher-level luxury products and services. And a diverse group of people has different types of preferences for choosing luxury products. That’s why it’s more effective to do differentiated marketing for those kinds of businesses than using other strategies.
Related
References
- https://blog.hubspot.com/insiders/branding-differentiation
- https://www.marketingtutor.net/differentiated-marketing/
- https://referralrock.com/blog/differentiated-concentrated-undifferentiated-marketing/
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