- Undifferentiated strategy
- Differentiated strategy
- Concentrated strategy
It will look very easy to you with the following diagrams.
A. Undifferentiated target market.
B. Differentiated Target Market
C. Concentrated Target Market.
In the case of undifferentiated strategy a firm decides to ignore market segment differences and go after the whole market with one offer. This is commonly referred to as mass marketing. You are reaching out to one and all, irrespective of any segmentation differences.
The differentiated strategy on the other hand comes about when the firm decides to target several market segments and designs separate offers for each. For example you could have a company manufacturing cars keeping in mind let us say 3 things as purse, purpose and personality. In fact I would urge you to kindly look at the brands that Maruti has in its portfolio and you will realize the above point.
Thirdly coming down to concentrated marketing; it is a strategy, which comes into play when a form goes after a large share of one or a few sub markets. This is especially true when the firm’s resources are limited in nature. So instead of going after a small share of a large market it rather goes for a large share of a small market or a few markets or if I could say niche markets. This is especially true for smaller firms trying to make a mark in the market. For example, in the case of Tiger biscuits, you mus realize that they introduced the Re.2/ pack purely because they could cater to the rural segment. The chai biscuit, so the Britannia people called it, had different segments having the biscuits.