Understanding Targeting Approaches: Differentiated, Undifferentiated, Niche & Micromarketing

Identification of the market segment leads a firm to decide how to approach the selected markets. However, there are many firms, which do not segment the market and would work for the aggregate market. This is called market aggregation which exactly opposite to segmentation. There are different kinds of targeting approaches and each marketing firm has its own unique way of targeting its customers. These targeting approaches are simply divided into four kind’s viz. undifferentiated marketing, differentiated marketing, concentrated marketing and Micro marketing.

Here is a brief discussion:
  1. Undifferentiated marketing: Undifferentiated marketing refers to an approach when a firm produces only one product or product line and targets all of its customers with a single marketing mix. The other term used for this approach is mass marketing. In Mass Marketing, the market coverage strategy essentially ignores the market segment differences and goes after the whole market with one offer. This marketing approach attempts to sell through persuading a wide audience. Usually the idea is to broadcast the message with an aim to reach the largest number of people possible. Mass marketing focuses on media coverage such as radio, television and newspapers. The idea is to maximize the exposure to the product. Examples of mass marketing products are toothpastes, which are not made especially for one consumer group or segment and are sold in huge quantities. Other examples are furniture, artwork, automobiles, residential communities, cola drinks and personal computers.
  2. Differentiated Marketing: The differentiated marketing refers to the approach of the firms, which produce numerous products with different marketing mixes. These products are designed to satisfy the smaller segments. In this approach, instead of marketing one product with a single marketing program the firm approaches the different consumer groups with products customized for each group. Most companies do this for specialization and to remain competitive. The differentiated marketing essentially requires market segmentation and incurs a higher production cost, inventory cost and marketing costs.
  3. Concentrated marketing: The popular term for concentrated marketing is niche marketing. Another term for the same is “Focused Market”. A niche market is a subset of the market on which a specific product is focusing. Each niche market essentially defines specific product features such as product design, price range, production quality and the demographics that is intended to impact. In niche marketing, the firm essentially focuses. Niche marketing chooses a small segment provided it’s a profitable segment. This approach is most suitable to smaller firms, which have lesser resources.
  4. Micromarketing: This is the narrowest approach of targeting. It is most effective technique for small business users to sustain, build and grow their own brand. It targets the potential customer at the very basic and personal level.

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  • Sunny

    Well , very informative and exhaustive information provided here … vry effective and helpful too … just a genuine suggestion … PLEASE PROVIDE WITH SOME REAL LIFE MARKET EXAMPLES AND CASE STUDIES … so than the topics are easier to understand , comprehend and correlate with the actual events ..

  • Rabia Hasnain

    This is a good elaboration. However, an example from the real business world should ideally be added to all four types given.