differentiated marketing

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Differentiated marketing is a type of marketing strategy where a firm offers products or services to a number of market segments and develops separate marketing strategies for each.

Further discussion on differentiated marketing:

After a segmentation analysis is conducted and available market opportunities are revealed, the marketer enters the next phase of the marketing process, which involves the following two steps:

  1.  how many market segments should be entered
  2. which segments offer the most potential for the product or company

Differentiated marketing falls under the first step, “how many market segments should be entered.” There are three market coverage alternatives under this step, they include:

  1. undifferentiated marketing
  2. differentiated marketing
  3. concentrated marketing

Comparison of the three types of marketing segments:

undifferentiated marketing

Undifferentiated marketing ignores segment differences and offers its product(s) to the entire marketplace

differentiated marketing

Differentiated marketing entails marketing to different market segments, often crafting different marketing strategies for each segment.

concentrated marketing

Concentrated marketing focuses on one market segment and tries to capture a large share of that segment.

Examples of differentiated marketing:

As an example, the alcohol beverage brewer, Anheuser Busch, makes the Bud Light brand of beers. As seen with the three advertisements below, the company segments their marketing efforts across several markets. In this example, we see advertisement segmented for the following markets: same-sex couples, Hispanics, and African American’s.

Each market segment would need a separate market strategy.

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