Differentiated Marketing is one of the strategies used to promote a brand or product. Thanks to it, companies can appeal to more than one group of customers and reach the target audience with an offer that meets the needs of each of them. Want to know exactly what diversified marketing is and how you can create a differentiated strategy for your products or services? Read on.
Every fourth enterprise declares the use of a diversified marketing strategy with full market coverage. Behind this, offers are directed to all market segments, differentiating them according to the needs and preferences of each of them. What makes this strategy so popular? It brings tangible resultsprovided that the company knows what it is talking about and to whom it is talking.
What is Differential Marketing?
A diversified marketing strategy, also known as multi-segment marketing, enables a company to appeal to many customer segments and target groups. It is a combination of focused and undifferentiated marketing. The offer is addressed to all market segments, differentiated according to the needs and preferences of each of them. Each segment is also directed to a different marketing message.
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For example, a health supplement brand may implement separate marketing strategies. Thanks to this, it will reach e.g. seniors, pregnant women or athletes, because it offers different products for each of these groups. With differentiated marketing, companies usually implement different ones strategies for each of the markets. Diversification may cover such areas as, for example, product offer, price thresholds or distribution methods.
How to apply a diversified marketing strategy?
To create a diversified marketing strategy that will appeal to different customer groups, the following steps are worth taking.
1. Marketing segmentation
To diversify your marketing, start by defining each target market you intend to reach. Identify key characteristics such as age, location, income bracket, and additional demographics that determine exactly who your customers are. For example, you can break your customer base into three distinct segments based on age. In one group there may be students, in the other mothers in their thirties, and in the last group of people over 60, who are preparing for retirement. The more precisely you define each market, the better you can develop offers that meet the unique needs of each group.
2. Analyze the needs of each market
After defining each audience group, define the needs that your products or services can meet in each market. You can do this by conducting customer surveys and asking them about their preferred products or services that help them meet a specific need. You can also use analytical tools to track data related to your customers' buying habits. This can provide a clear view of the types of products and services that your audience regularly purchases.
3. Submit offers for each group
After identifying the needs of each customer segment, you can develop your products or services to suit the needs of those markets. For example, you may find that one of your target markets is customers who often buy organic cleaners. Knowing this, you can develop even more natural or organic products for this group of consumers, or expand their assortment.
4. Identify customer contact points with the brand
After defining your audience and identifying their needs, determine which channels to use to reach specific groups of buyers. For example, if one of your target groups spends most of their time on social networks, you can develop promotional and advertising materials that will appear in these places. Additionally, when you identify areas that your customers frequently visit, you may have a better idea of how to design attractive marketing materials for them. For example, you can blog posts, create videos and podcasts to educate customers about your products or services by using indirect marketing.
Diverse marketing - examples
A diversified marketing strategy means that a company offers a different product or service for each customer segment at a different price. It may also be different communication strategy and distribution. Let us analyze it with examples. Let's start with the product, e.g. running shoes. Already within this seemingly narrow group, the diversity is really large. You can choose the shoes for where you run - on hard ground, or maybe in the mountains? Running shoes can be waterproof, with or without a membrane. There are neutral shoes, for the supinator or supinator, taking into account the type of foot. As you can see, sports footwear brands know very well how to apply diversified marketing.
Another issue is the price. This time let's go back to the example of a cafe. Some customers just want a cup of coffee and don't want to overpay for it. For others, it is important that the grains come from organic farming and are of the highest quality. They are also willing to pay extra for e.g. organic milk. By offering both, a coffee shop increases the chances of attracting different types of customers. Some may not be willing to spend too much, while others will reach for the best - and at the same time the most expensive - products without hesitation.
Diversified marketing also means different types of promotion and ways of reaching target groups. Take the ski slopes for example. Young people on snowboards and families with young children who are just getting to know the secrets of skiing will have fun on them. A different image will appeal to each of these groups, and something different will be important. Young people will appreciate the quick routes on which you can go crazy. Parents of young children will be interested in a donkey meadow where their children will be able to safely enjoy lessons with an instructor. Different groups may also be effective for each of these groups communication channels.
Distribution is also important in diversified marketing. This is clearly shown by the example of clothing companies that offer various brands of clothing. Clothing stores of a brand considered luxury are usually located in places visited by price-insensitive customers - e.g. at airports. More affordable brands, on the other hand, are usually available in almost every shopping center.
Advantages of using differentiated marketing
There are several key advantages of implementing diversified marketing. First, they can thanks to him meet a wide range of customer needs, instead of referring to one specific. Let us recall the brand of dietary supplements again. Its offer may be attractive to customers who need special dietary supplements, such as vitamin B12, and at the same time meet, for example, the needs of seniors who are looking for specifics that generally strengthen the body.
Diversified marketing makes it possible as well increasing the reach of customers. Companies can reach more customers by differentiating their approach to selling their products and services. Take a cafe for example. Its offer may include items of interest to customers visiting this place on business and students who pop in for a quick coffee during breaks between classes. When companies differentiate their marketing approaches and diversify their offerings, they are able to reach more ideal customers.
Another advantage of using differentiated marketing is increasing total sales revenues, thanks to offering products and services in many markets. As the company's revenues increase, its profitability grows. That is why many brands decide to diversify their advertising methods and develop various offers for their clients. It is also associated with flexibility and the ability to adapt to changes. By having more than one customer segment, more than one product type, and a diverse range of services, companies are able to secure future revenues even if one market is no longer profitable. With the expansion of market niches, diversified marketing provides businesses advantage over competitors operating in only one or two selected niches. A competitive advantage is the provision of a diverse range of products or services that meet a wide variety of needs.
Does Differential Marketing Have Disadvantages?
While effective, diversified marketing has some drawbacks that you should understand before your business starts implementing a diversified marketing program. One of the dangers is inconsistency in communicated content. If a company changes its message every time it advertises to a different group, it could weaken its identity. Check if your company has developed contentthat will appeal not only to one narrow audience. You may find that you don't need diversified marketing at all. If you want to differentiate your message for different audiences, such as different age groups, find a way to include something that is universally true about your company or product in your content. Thanks to this, even niche markets will identify your company as the one that addresses its offer to a wide range of customers.
Another thing that differentiated marketing entails is costs. Trying to reach niche markets with your ad can be costly. Especially if every ad posted by the company is so targeted that it cannot be reused. Or it can only be used in certain media. Then you have to take into account the costs associated with creating new ads for each group of customers.
Limitations of diversified marketing
One of the problems with differentiated marketing is that a business can get confused about who its customer is. Just because your target audience is well defined does not necessarily mean that it is the right group to target. If a business narrows down too much, it may actually overlook potential customers in a group it didn't include. So be ready to change your strategy if it turns out that your target market is not responding as expected. It's always a good idea to research niche markets that you have ignored. For what purpose? To see if there has been any confusion about the purchasing habits of consumers.
Differentiated marketing to small groups of customers may also have other limitations. How much can you develop in a niche market? It is known to be limited. So over time, the company will either need to identify new target markets or find a way to appeal to a wider market. It is therefore good to confront your thinking about serving certain types of customers with the awareness that you will have to find new customers someday. It is up to the company to decide whether at some point in its growth it wants to serve a series of niche markets or whether it wants to enter the general market.
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