It tries too design a product and a marketing

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It tries too design a product and a marketing programme that appeal to the broadest number of buyers. It relies on mass channels mass advertising media, and universal themes. It aims to endow the product with a superior image in people’s minds, whether or not this is based on any real difference. Undifferentiated marketing is primarily defended on the grounds of cost economies. The fact that the product line is kept narrow minimizes production, Annamalai University
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44 inventory, and transportation costs. The undifferentiated advertising programme enables the firm to enjoy media discounts through large usage. The absence of segmental marketing research and product management. On the whole. undifferentiated marketing results in keeping down several costs of doing business. 2. Differentiated Marketing: Under differentiated marketing, a firm decides to operate in two or more segments of the market but designs separate product and/or marketing programmes for each. In recent years an increasing number of firms have moved toward a strategy of differentiated marketing. This is reflected in trends toward multiple product offerings and multiple trade channels and media. The net effect of differentiated marketing is to create more total sales than undifferentiated marketing. However, it also tends to be true that differentiated marketing increases the costs of doing business. 3. Concentrated Marketing: Both differentiated, marketing and undifferentiated marketing imply that the firm goes after the whole market. However, many firms see a third possibility. One that is especially appealing wh en the company’s resources are limited. Instead of going after a small share of a large market, the firm goes after a large share of one or a few sub markets. Put another way, instead of spreading itself thin in many parts of the market, it concentrates its forces to gain a good market position in a few areas. At the same time, concentrated marketing involves higher than normal risks. The particular market segment can suddenly turn sour or a competitor may decide to enter the same segment. For these reasons, many companies prefer to diversify in several market segments. SELECTING A MARKET TARGETING STRATEGY Particular characteristics of the seller, the product, or the market serve to constrain and narrow the actual choice of a market targeting strategy. The first factor is company resources. Where the firm’s resources are too limited to permit complete coverage of the market, its only realistic choice is concentrated marketing. The second factor is product homogeneity. Undifferentiated marketing is more suited for homogeneous products such as grapefruit or steel. Products that are capable of great variation, such as cameras and automobiles, are more naturally suited to differentiation or concentration.
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