Choosing a Targeting Strategy
When it comes to choosing a market-targeting strategy, companies face several important considerations. The selection of the best strategy depends on factors such as available resources and the nature of the product being marketed. Limited resources often make concentrated marketing the most logical choice, allowing companies to focus their efforts on specific target markets and allocate resources efficiently. On the other hand, undifferentiated marketing is better suited for uniform products like grapefruit or steel, whereas products with design variations, such as cameras and automobiles are more compatible with differentiation or concentration strategies.
The life-cycle stage of the product is another significant factor to take into account. For newly introduced products, it may be practical to launch a single version, making undifferentiated or concentrated marketing the preferred approach. However, as the product matures, differentiated marketing becomes increasingly important as it enables companies to cater to the diverse needs of specific market segments.
Market Variability is yet another consideration. If most buyers have similar tastes, purchasing patterns, and responses to marketing efforts, undifferentiated marketing is appropriate. However, when there is significant variability among buyers, differentiated or concentrated marketing proves to be more effective in addressing the distinct needs of different customer segments.
Lastly, the strategies employed by competitors also play a role in the decision-making process. If competitors are utilizing differentiated or concentrated marketing, adopting an undifferentiated approach can be disadvantageous. Conversely, when competitors rely on undifferentiated marketing, a company can gain a competitive advantage by employing differentiated or concentrated marketing strategies, thereby focusing on the specific needs of buyers within particular segments.