Marketing of products and services through various channels to reach target clients is always at the forefront of any business. It is common to find companies giving its marketing team more resources than other departments as a way of ensuring their activities convert to sales. However, as the years have gone by many companies have had to relook their marketing strategies and come up with one that conveys the message about their products and services.


Undifferentiated Vs. Differentiated marketing

Majority of marketing strategies are developed with the aim of focusing on particular target markets and ensuring the approach that is employed works. Currently, the primary strategies that are used by businesses are the undifferentiated and differentiated marketing strategy. Both of the strategies have benefits that appeal to those that adopt them as part of their marketing goals. Even so, there are major  differences between these two types of marketing which include:

1) Number of target groups

Differentiated marketing involves the crafting of campaigns that target two segments at a minimum. The two sections can differ regarding gender or age among other factors with the focus being on getting the message to them in a way they understand. On the other hand, undifferentiated marketing targets a mix of people with the same message without considering smaller details about them.

2) Type of campaign message

Differentiated marketing seeks to create different messages for its target audience within the same campaign. When using this strategy, the overall message of the campaign is slightly altered to appeal to various segments.  However, with undifferentiated marketing, the message sent out is general and meant to appeal to the mass market. In most cases, the message is crafted in a way that makes it relatable to everyone within the target market.

3) Type of product or service

Differentiated marketing is ideal for target groups whose needs from a particular product or service are distinct. It is for this reason that crafting various messages to reach each group is crucial if they are to respond as anticipated. Alternatively, undifferentiated marketing is the best for services or products whose consumers have the same needs. Most times, the messages resonate with the target audience regardless of the service offered.

4) Number of marketing channels

Differentiated marketing often uses tailor-made messages to reach their market so that they can better engage with the product or service. To reach the segments within their target group, there is a need to use marketing channels that appeal to them regardless of the number. However, with undifferentiated marketing, the channels used are almost always the same, and in some cases, one channel is enough to get the message out effectively.


Merits of differentiated marketing

The popularity of differentiated marketing is one the rise with more and more companies adopting it as part of their strategy. This unique marketing strategy can work for small businesses as well as large companies that want to promote their products effectively. Some of the significant benefits of differentiated marketing include:

1) Value creation

Companies that use differentiation marketing often focus on selling the value of a product, rather than comparing it to other similar products. When customers understand the value proposition of the product they are likely to purchase it without worrying about the price. Creating value also helps in further segmentation of target group from the feedback received so that your company only manufacturers products that are needed.

2) Evaluation of competitors

As a company segments its market, it begins to understand its position in the market when compared to competitors. Getting to understand the perception of competitors from your customers makes it possible to discover gaps that you can fill and become a leader in the market. Companies can use the information gathered from differentiated marketing strategies to innovate and introduce products that will earn them more market share and result in better profits.

3) Elimination of price wars

The majority of companies that sell in similar markets tend to focus on pricing to attract customers to buy their products. However, market differentiation strategies make it easier for businesses to compete in other areas apart from price. Companies can focus on adding value to their products or services so that their customers move away from always asking for a discount but focus on the benefits available to them. The advantage of non-price competition is that there is no need to reduce costs to attract the ideal client.

4) In-depth marketing evaluation

Segmenting the target market requires a lot of research into the needs of current and potential clients to enable companies to create products that meet their requirements. The assessment can delve into the smallest details of their lives giving companies a chance to develop products that will be purchased. As the strategy continues to adapt to the customers’ needs, so will the profile of the company resulting in more profits in the long run.

5) Effective allocation of resources

Allocation of company resources is much easier when the target market has been segmented well. Company executives can come up with a comprehensive budget that allocates funds to various departments as expected. The development of effective marketing goals based on the differentiated marketing example and the results after that is also possible when the customers have been segmented. Besides, provision of adequate resources makes it easier for staff to concentrate their efforts on segments that are likely to be profitable.

6) Increase in business profits

Differentiated marketing ensures that the products or services offered to customers meet their immediate needs. The marketing offer accompanying the products is also crafted to appeal to their emotions so that they make a purchase over and over again. As long as the items offered to clients are of high quality, the profits will rise over time for the benefit of the company. Additionally, products that provide solutions to the majority of a customer’s needs are likely to be purchased without price consideration.

Generally, differentiated marketing ensures that the products and services offered to clients are satisfactory. Also, this marketing strategy ensures that the messages sent out convey positive product attributes at all times.