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2.2.3 Differentiated and Undifferentiated Marketing

Overview

Marketing strategies can be broadly categorized into two approaches: Differentiated Marketing (rifle approach) and Undifferentiated Marketing (shotgun approach).

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Differentiated Marketing

  • Definition: Focuses on identifying specific target markets and tailoring marketing strategies, products, and services to meet their needs.
  • Process:
  • Segmentation: Divide the market into distinct groups based on shared characteristics.
  • Targeting: Select specific segments to focus on.
  • Positioning: Develop a marketing mix and strategy tailored to the selected segments.

Characteristics:

  • Also known as the rifle approach:
  • Aims precisely at a target market before delivering tailored products or services.
  • Focuses on creating differentiated products or services for specific customer groups.
  • Common in industries with diverse consumer needs, e.g., personal care, technology, automobiles.

Example: Sunsilk Shampoos

  • Sunsilk identified five distinct customer needs related to hair care and created five product variants:
  • Dream: For soft and smooth hair.
  • Hair Fall Solution: To prevent hair fall.
  • Lusciously Thick and Long: For thicker, longer hair.
  • Stunning Black Shine: For shiny, black hair.
  • Perfect Straight: For straight hair.
  • Each product targets a specific segment, demonstrating differentiated marketing.

Undifferentiated Marketing

  • Definition: Targets the entire market with one product and strategy, ignoring segmentation.
  • Process:
  • A single product is marketed to all consumers without differentiation.
  • Assumes all consumers have similar needs or preferences.

Characteristics:

  • Known as the shotgun approach:
  • Broad and generalized marketing efforts aimed at reaching as many people as possible.
  • Typically used for commodity products (e.g., rice, milk, eggs) with minimal variation.

Example: Henry Ford’s Model T

  • Henry Ford’s Approach:
  • Produced a single car model: Model T.
  • Offered the car in one color: black.
  • Quote: "Any customer can have a car painted in any color that he wants, as long as it is black."
  • Analysis:
  • Aimed at the entire market without customization.
  • While it is often cited as an example of undifferentiated marketing, its high price and novelty at the time suggest it targeted a niche audience (wealthy, enthusiastic consumers).

Contrasting Differentiated and Undifferentiated Marketing

Aspect Differentiated Marketing Undifferentiated Marketing
Focus Specific target segments Entire market
Product Variety Multiple tailored products Single product
Customization High Low
Examples Sunsilk shampoos, rice brands Generic rice, bread, milk
Approach Rifle (precise targeting) Shotgun (broad reach)
  • Many traditionally undifferentiated products are now becoming differentiated:
  • Rice:
    • Different types for pulao, biryani, kheer, etc.
    • Branded options like Daawat Basmati and India Gate Basmati.
  • Eggs:
    • Differentiation based on organic, omega-3 enriched, or free-range options.
  • Marketers increasingly tailor products to meet diverse consumer needs, blurring the lines between differentiated and undifferentiated markets.

Key Takeaways

  1. Differentiated Marketing:
  2. Precise targeting and tailored offerings.
  3. Suitable for diverse markets with varied consumer needs.
  4. Undifferentiated Marketing:
  5. One product for the entire market.
  6. Works best for commodities with universal appeal.
  7. Modern Shift:
  8. Even traditionally undifferentiated products are becoming differentiated due to changing consumer preferences and competitive markets.

By understanding these approaches, businesses can better align their marketing strategies with consumer needs and market dynamics.

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