Tuesday, 26 January 2021

BBA/MBA - Marketing Management: Undifferentiated Marketing vs Concentrated Marketing vs Differentiated Marketing (#marketing)(#ggsipu)(#mbanotes)(#bbanotes)(#ipumusings)

Marketing Management: Undifferentiated Marketing vs Concentrated Marketing vs Differentiated Marketing

BBA/MBA - Marketing Management: Undifferentiated Marketing vs Concentrated Marketing vs Differentiated Marketing (#marketing)(#ggsipu)(#mbanotes)(#bbanotes)(#ipumusings)


Question (MBA 2016) - Explain how Undifferentiated Marketing, Concentrated Marketing and Differentiated Marketing differ from each other. Explain with examples.

Answer: Once a company evaluates different segments and decides which segments it can serve the best and then market-targeting strategies are laid out. Based on target-market, it can be of the following types:

① Undifferentiated Marketing  (or mass marketing)

② Differentiated Marketing (or segmented marketing)

③ Concentrated Marketing (or niche marketing)


Let us take an example of tourism company which wants to market tourism using branding and events. Here are the important differences between the three marketing strategies:


Strategic Factors Undifferentiated Marketing Differentiated Marketing Concentrated Marketing
Target Segment A broad range of customers. Two or more well-defined consumer groups, market segments identified. A well-defined consumer group, niche segment
Product or Service Ignores market segments and offers a single product or service to the whole market. Offers a separate brand of product or service for each consumer group (sizeable and distinctive). Offers one particular brand or service, tailor-made or personalised catering to one particular market segment.
Alternately called Mass Marketing Segmented Marketing Niche marketing
Promotion All types of media. Newspapers, radio or tv advertisements, billboards Suitable media based on market segments e.g. local advertisements, pamphlets Suitable media based on the identified segment e.g. sending emails or tele-calling persons of certain income-groups
Distribution All possible outlets e.g. kiosks, retail, intermediaries etc. Suitable for different segments e.g. product available through online stores or retail outlets. Suitable for that particular segment. e.g. A fashion company offers personalised tailer made dresses for office goers via its website.
Price One popular price range Distinct price ranges for different segments One price range for tailored for the particular segment.
Challenges Difficulties arise in developing a product or brand that will satisfy all consumers. Very often have competed with more-focused companies. Increases the costs of doing business e.g. have to manufacture and manage 10 different products for 10 different segments. Increases risk considerably. If that niche segment fails, business suffers greatly.
Suitability More suited for uniform products e.g. fruits, steel Products that can vary in design e.g. laptops for business purpose, graphics artists etc. Products that can vary in design. e.g. cars, mobiles
Example Tourism company offers cheap air tickets to Kerala. Tourism company offers different Kerala package tours. Tourism company offers honeymoon Kerala package including houseboat stay in backwaters.


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