Strategic Marketing Basics

When the coverage strategy is global, 2 strategies can be contemplated.

 

 

1. An undifferentiated marketing strategy consists in minimizing the existing differences between market segments by proposing a one and only product for all and a single marketing plan. The supply is therefore centered on the common characteristics of the consumers, neglecting all other factors. There is, for example, no different product range or different packaging. This type of strategy leads to significant saving but is increasingly difficult to defend in growing or mature industrialized economies where it's difficult to satisfy everyone with a single product (brand).

 

 

 

 

 

 

1. Most often now, companies will decide to cover the market segment by segment and to design distinct marketing plans for each of these segments. The supply of the products and the other elements of the mix are adapted to follow as closely as possible the needs, wants, attitudes or behaviors of the various segments. The outcome of such an approach is a reinforcement of the company’s value proposition in each category but at the expense of   additional costs (product adaptation, logistics, promotion, etc.). Currently, many companies try to find a balance between adaptation to over-segmented (hyper-segmented) markets and a standardized processes leading to economies of scales. That's why we are witnessing many international groups  reduce the number of brands and broaden the target of each brand.