One of the main goals of all businesses and marketers is to reach a large number of people. For this purpose, they opt for different types of marketing strategies so that they can take their message to people from all around the world which will result in the promotion of their brand and products.
Do keep this fact in mind that a marketing campaign cannot be done without any proper plan. You have to pick the best marketing strategy that can help you to generate a successful campaign.
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Does these strategies apply when advertising online or offline?
No matter what advertising channels you choose, you must keep these strategies in mind for the overall plan.
There are plenty of marketing plans and ideas but the two approaches are considered as the major categories of marketing strategies. Both of these strategies have their own advantages and compatibilities.
This article will guide you to get the best understanding of these two different marketing strategies.
Differentiated Marketing Strategy
Differentiated marketing strategy is when a company or business develops its marketing to attract a minimum of two market segments or at least two target groups from the audience. It means that this strategy works when a business wants to promote its product that is appreciated by a larger audience.
It is also considered when a brand wants to promote their cosmetics or any type of product that appeals to women of two different age groups.
Simple is that differentiated marketing is the way of attracting different people from at least two different places, categories, genders, or any other aspect. For example, clothing and especially shoe companies usually adopt this marketing strategy because they have to attract both women and men of different age groups.
This marketing strategy can have different messages in the same marketing campaign depending on the target market.
Examples of differentiated marketing:
Chicken Maharaja Mac: The Indian Big Mac
MacDonald’s had to adapt their offer to survive in the Indian market. The beef and pork products are not consumed due to their religious beliefs. Therefore, they came up with a new recipe to replace the famous Big Mac.
Top 4 Advantages of Differentiated Marketing Strategy
- You can deliver different personalized messages to each market segment.
- You can have different messages for different segments. Therefore the probability of attracting people, increasing sales, and gaining loyalty will be increased to many folds.
- You can connect to people more easily and efficiently as you can target the characteristic that is well appreciated by your specific audiences such as quality, quantity, or low price.
- By knowing the place and offering them what they want, you may find plenty of loyal and returning buyers.
Drawbacks of Differentiated Marketing Strategy
- As you will target different market segments, the cost of this marketing strategy will be relatively high.
- May require more resources because you have to run multi-messaging campaigns with a lot of men power and other resources.
Concentrated Marketing Strategy
As the name implies, a concentrated marketing strategy only focuses on a specific market segment or one targeted group.
For example, it is often used by small companies that offer services in a specific location or city.
Also, it is best suitable for selling products that can only be used by teenagers or another specific targeting like age range, gender, ethnicity, occupation, household income, lifestyle.
This thing clearly means that a concentrated marketing strategy will only deliver its message to a small audience because it is only designed for a small group instead of different market segments.
Concentrated Marketing: 5 Examples of Companies That Are Doing It Right
- Rolls Royce
They have an average 4000 cars made per year, Rolls Royce target only the premium market segment. As stated by the Los Angeles Times, Rolls Royce only targets consumers that have over $30 million liquid assets.
Their brand signature is uniqueness, offering customers 44,000 colours to choose from and the option to customize their car even more.
- Victoria’s Secret
Victoria’s Secret built their brand image around the idea of top-models advertising their products trough models known as Victoria’s Secret Angels.
Above all, their marketing campaign ‘Perfect Body’ has created a buzz in social media, accused of being offensive to the majority of the female population which don’t have “perfect” model proportions.
- Rolex
Rolex has also been known for its sports watches. In 2007, Rolex introduced the Yacht-Master II line of luxury sportswatches designed specifically for yachting enthusiasts.
These timepieces feature an Oystersteel case and bracelet as well as an automatic movement with date display at 3 o’clock position on dials in either blue or black color schemes.
The company also offers a line of watches specifically designed for golf enthusiasts, called the Rolex Datejust II.
Rolex has been known to be one of the most expensive watch brands in the world. In 2006, Forbes magazine reported that it was ranked as the third most prestigious luxury brand. The company is headquartered in Geneva and employs more than 4,000 people worldwide.
- Nike Air Jordan
Air Jordan is a brand of Nike, Inc. It was named after Michael Jordan who is the famous basketball player in the world. The most attractive feature of this shoe is that it has an excellent design and high quality material which makes it light weight and comfortable to wear for long hours.
The following section will throw some light on how Nike Air Jordans were developed into what they are today:
In 1984 , Nike was looking for a new way to promote their product line . They wanted something that would appeal not only to athletes but also those who admired athletic performance , such as music fans , movie goers , etc…
This led them down a path where they discovered African American athlete Michael Jordan. Michael had been drafted by NBA team Chicago Bulls earlier that year. Nike decided then that MJ would be perfect personification for what they were looking for : someone who excelled both on an individual level AND played team sports. Someone whom people from all walks could identify with.
They used him extensively in advertising campaigns alongside other greats such as Larry Bird, Magic Johnson & Wayne Gretzky.
A few years later MJ became known worldwide when he took over professional basketball by storm through winning numerous awards including Rookie Of Year (1985), MVP award (1988 & 1991) & leading Bulls 3 times(1991-93)to NBA Championship wins.
He went onto become arguably THE biggest star ever known worldwide. This gave rise to new generation ‘s obsession with sneakers – particularly Nikes.
- Whole Foods
The Whole Foods Market Inc., which was founded in 1980 by John Mackey and Renee Lawson Hardy in Austin Texas, has become one of the largest natural grocery retailers in North America (Whole Foods Market Inc., 2014).
In 2012 it had sales revenue of US$11 billion. It’s total number of stores increased from 15 stores in 1990 to 456 locations across United States and Canada as at December 31st 2013, making it one of fastest growing companies globally.
The company’s growth can be attributed to their unique marketing strategies such as: wholesome image; commitment to quality; customer service orientation; strong community involvement; emphasis on freshness; environmental sensitivity. These strategic factors have enabled them maintain high levels of customer satisfaction while maintaining competitive pricing structure compared with traditional supermarkets.
The Advantages of Focusing Your Marketing Efforts on Concentrated Marketing Strategy
- When targeting a specific location or group you can benefit from word of mouth advertising if you offer quality products or services.
- This is the suggested and easiest marketing strategy for small or new businesses.
- It allows you to build a good reputation because you only have to fulfil the demands of a small group of people.
- You have the opportunity to understand the difference between marketing strategies.
- Easy to shift to another strategy when it’s time to scale up your business.
Major Drawbacks of the Concentrated Marketing Strategy
- An drawback of this strategy is that it only targets a small group audience.
- As seen in Victoria’s Secret example, can be slippery at times and you should always be aware of the market trends.