Posted in Marketing and Strategy Terms, Total Reads: 932
Definition: Undifferentiated Strategy
In a homogeneous market, companies usually follow a single marketing mix- one product, one price, one placement and one promotional effort, for a particular product for the entire market. This strategy is called an undifferentiated strategy as it doesn’t differentiate between the various segments of the market. Undifferentiated strategy focuses on the entire market as a whole instead of any particular segment to reach out to the maximum number of customers of the target market.
Some products like sugar, salt, tooth paste etc. are usually marketed using the undifferentiated strategy. This is because many consumers usually have the same needs. For this strategy to work, it is necessary to have very large customer base.
Differentiated strategy, on the other hand, targets different segments differently using specific marketing mix. It is effective for markets with identifiable segments having unique needs. Products like motor cycles or shoes etc. are usually marketed for different segments differently. This is synonymous to the focus differentiation, one of the porter’s generic strategies.
Undifferentiated marketing is sometimes called as mass marketing. The main advantage of undifferentiated marketing is that it does not require much focus to identify the needs of different market sections.