When it comes to successful marketing, there’s no one size fits all. Your campaign and strategy will depend on the specific needs and interests of your potential customer.
Unfortunately, there’s just not enough time or money in the world to create the perfect campaign or message for every single customer. That’s why marketers create “target markets,” or the ideal group of customers they’re trying to convert. This makes it easier to narrow down their audience and then produce appropriate content that will drive sales.
Choosing the right target market
There are three different targeting strategies that a business may implement:
Concentrated marketing – A strategy in which the brand focuses its entire efforts and resources on serving just one segment of the market
Undifferentiated marketing – Also known as mass marketing, it involves offering a generic product and/or message to the entire market. Its main goal is to reach as many customers as possible through a single product, price, placement strategy, and promotional campaign. Since it serves a wider demographic, this tactic may require a higher initial investment.
Differentiated marketing – A marketing strategy in which the firm decides to provide separate offerings and messaging to each targeted market segment
Differentiated marketing offers brands an opportunity to expand their client base. When businesses integrate a differentiated marketing strategy, they offer appropriate products to the right people, increasing conversions and revenue. In this article, you’ll learn the definition of differentiated marketing and how you can leverage this strategy to grow brand equity and market share.
What is differentiated marketing?
Differentiated marketing is focused on appealing to multiple segments of your target market. Brands do this by creating unique offers, price points, product offerings, and/or means of distribution for individual market sectors. Although campaigns may differ, they must remain consistent with the overall brand positioning.
Differentiated marketing allows you to maximize opportunities for growth by being more relevant to specific segments. By targeting a defined ideal customer profile, you can expand your client base, dominate your niche, and attract more sales.
A differentiated targeting strategy is often the default choice among new businesses looking to identify the best markets. By exploring various segments, you can determine which ones result in the most referrals and repeat sales.
At the same time, a differentiated marketing strategy can help businesses adapt to changing market needs and product demands. Appealing to multiple segments and offering various product types can ensure continuous revenue even if one market ceases to be profitable.
Examples of differentiated marketing
Nike
Nike is no stranger to executing successful differentiated marketing campaigns. Since sports differ per region, Nike uses a different marketing strategy for every country. For example, Nike’s commercials in Europe are focused more on soccer, while their ads in the United States are centered around basketball and football. In doing so, they make their campaigns more relatable and interesting to each audience group.
McDonald’s
McDonald’s is another brand that is killing it with its differentiated marketing campaigns. As a multinational company, McDonald’s adjusts its menu and messaging according to each country’s interests, cultural backgrounds, and buying patterns.
In India, where people consider cows a sacred symbol, McDonald’s removed beef products from the menu not only to ensure profitability but also to respect the local culture.
Likewise, in Japan, they offer seasonal products such as Sakura Cherry sodas and ice cream floats in spring and Tsukimi burgers in autumn. These products are specifically developed to celebrate cherry blossom and harvest moon festivals, respectively.
Brands that use a differentiated marketing strategy diversify offerings, allowing them to reach a greater number of ideal customers and increase the chances of marketing success.
Advantages of differentiated marketing
Marketing products or services in a way that satisfies particular customers’ requirements benefits a brand in various ways:
- Widens market reach
- Boosts total sales revenue
- Allows businesses to adapt and stay relevant
- Increases competitive advantage
- Fosters customer loyalty
How to build a differentiated marketing strategy
The following steps provide a guide for appealing to your target customer groups:
- Narrow down your target markets – Which customers are you trying to reach?
- Identify the needs, goals, and pain points of each market – What core problem do you intend to solve for ideal customers?
- Create offers for each audience segment – What unique products, services, price points, or marketing message will you offer for each segment?
- Identify promotional outlets – How and where will you market your offerings?
- Track and monitor key metrics – How do you measure your marketing success?
Dominate your niche markets with CRISPx
Along with growing market niches, differentiated marketing allows businesses to outperform competitors that market to only one or two select audience groups. At CRISPx, we can help you understand your target groups better and diversify your campaigns while staying true to your core branding.
Request a free consultation now to see how differentiated marketing can transform your brand.