Choosing a target marketing strategy:
Companies need to consider many factors when choosing a target-marketing strategy.
1. Company resources: The choice of strategy depends on company resources. When the firm’s resources are limited, concentrated marketing makes the most sense.
2. Product variability: The best strategy also depends on the degree of product variability. Undifferentiated marketing is more suited for uniform products such as grapefruit or steel. Products that can vary in design, such as cameras and automobiles, are more suited to differentiation or concentration.
3. Stage of product life cycle: The product-life-cycle stages also must be considered. When a firm introduces a new product, it may be practical to launch only one version and undifferentiated marketing or concentrated marketing may be most sense. In the mature stage of the product life cycle, however, differentiated marketing begins to make more sense.
4. Market variability: Another factor is market variability. If most buyers have the same tastes, buy the same amounts, and reach the same way to marketing efforts, undifferentiated marketing is appropriate.
5. Competitor’s strategies: Finally, competitor’s marketing strategies are important. When competitors use undifferentiated marketing, a firm can gain an advantage by using differentiated or concentrated marketing.