December 4, 2020

Undifferentiated vs. Differentiated Marketing Strategy: Which is Best for Your Business?

undifferentiated marketing

Customer and product information are the building blocks of any successful business. When a business knows their services and customers well, an indisputable degree of authority, authenticity, and trust is fabricated. This information acts as a magnet for new and returning customers, allowing small businesses to flourish and expand.

In marketing, customer information goes beyond knowing names and service preferences. Instead, marketing professionals become acquainted with customers with their spending habits and motivations. By understanding these details, businesses can better realize how to reach increasingly potential customers.

In marketing, there are various types of markets based on the kind of business you are operating. They can be broken into two categories: differentiated and undifferentiated. Knowing which one of these markets your business wants to target is the first step in creating a powerful, long haul marketing strategy.

What’s the Difference?

The definitions of differentiated and undifferentiated marketing strategies are exactly what they sound like. Differentiated marketing focuses on a specific market, an “alternate” market, that is interested in buying a certain kind of product. For example, a business selling organic dog food is looking to target a specific kind of person – a health-conscious, animal-loving, and eco-accommodating individual.

Then again, undifferentiated marketing is designed to appeal to a broad range of customers. An example of this would be a business that produces soft drinks and is looking to target anyone thirsty. There is nothing novel or specialized in the marketing campaign; its primary goal is to impact as many individuals as possible.

Benefits of Differentiated Marketing

Differentiated marketing is the default decision among small businesses, especially on the off chance that they are hoping to develop. By targeting a defined and extremely narrow ideal customer profile, a business can construct their customer base, master their niche market, and organically begin to develop.

We should take the example of the organic dog food business. At first, a differentiated marketing strategy may target the dog-lovers in the local area. As the business thrives locally, the company may choose to stretch out its reach to other cities and states. Or on the other hand, they may choose to start making organic cat food or gerbil food. This success may open up an altogether new market, yet builds on the central strategy. After some time, these marketing strategies concentrations expand on themselves and can be mixed to strengthen strategies.

Another benefit of differentiated marketing is cost-effectiveness. For another business, a differentiated marketing strategy offers a less expensive way to enter a market and begin to turn a profit. It can enable small businesses to define their target markets so they can learn to distinguish ideal customers; those that offer repeat business and allude to others.

Benefits of Undifferentiated Marketing

When a company offers a broad range of services or an increasingly accessible product, undifferentiated marketing may be a better strategy. Because undifferentiated marketing targets a more extensive demographic, it may require a greater amount of an initial investment.

Undifferentiated marketing can be seen each day. Examples include:

  • Television ads
  • Radio slots
  • Newspaper advertisements
  • Billboards
  • Sign spinning
  • Car decals

Undifferentiated marketing strategies have numerous benefits, including:

  • Higher reach
  • Brand awareness and recognition (Hey! I saw your commercial on TV!)
  • Increased store traffic
  • Less market research required
  • Unchanging campaigns

Undifferentiated marketing strategies take less an ideal opportunity to assemble and are often shorter in duration. These campaigns can be used to promote everything from annual sales to new locations.

Is Online Marketing Differentiated or Undifferentiated?

undifferentiated marketing

What makes online marketing so remarkable is its ability to reach targeted audiences with a high reach. Generally speaking, website marketing is a differentiated marketing strategy. It targets specific keywords to increase online visibility, authority, and likability.

Online marketing is exceptionally dynamic, yet its success is established in the amount of information you have about your product and your ideal customers. Based on these details, you can use the following tactics to increase visibility and attract new clients:

  • Search Engine Optimization (SEO) makes sure you are discovered when customers are searching for the kind of services you offer
  • Social Media Marketing allows your brand to engage and interface with potential customers and other companies
  • Email Marketing targets markets in their email inbox by sharing relevant and informative substance, newsletters, accommodating articles, and coupons
  • Online News Releases give away to target professionals and update the business world about company accomplishments
  • Content Marketing is a way to reach target demographics with engaging articles, blogs, and social media messages

Your online presence is working for you 24 hours a day, 7 days seven days.

Undifferentiated Online Strategies

Because the internet is so broad, there is, of course, a space for the traditional undifferentiated marketing campaign. High saturation campaigns include:

  • Pay Per Click (PPC) Advertising
  • Paid Social Media Promotion
  • Banner Ads

Undifferentiated online strategies have less worry over connecting with a specific kind of customer and focus more on being exceptionally visible.

What About Viral Marketing?

Viral successes (items that are generally and immediately spread via social media) may be considered undifferentiated online strategies because they reach such a high number of individuals. Yet, they are a half breed between undifferentiated and differentiated marketing strategies. While researchers are still attempting to understand the science of viral marketing success, these substance pieces are often crafted to appeal to a niche market of individuals however wind up having mass appeal.

Which Marketing Strategy Should I Choose?

With the ongoing rise in online niche marketing, choosing between differentiated and undifferentiated marketing strategies is a bit like comparing apples to oranges. They are both fantastic and essential for a successful sales model. Yet, by prioritizing differentiated marketing, businesses can build up the potential of their online presence and have increasingly informed information on their customer base.

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