Compare and contrast undifferentiated
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Undifferentiated, Concentrated, and Differentiated Targeting Strategies Segmentation refers to the process of dividing the market of consumers into groups based on one or more shared internal or external characteristics. After the segmentation process is complete, the next step is targeting, which involves the tourism marketer’s choosing a segment or segments to which to communicate the promotional message. There are three different targeting strategies that a tourism marketer can implement. The tourism marketer must make the important decision as to whether he or she wishes to use an undifferentiated, concentrated, or differentiated targeting strategy (Table 5.1).
Sending the same promotional message to everyone
Promoting the city as a historic destination by placing ads in widely read newspapers Concentrated
Designing a promotional message that communicates the benefits desired by a single specific segment Promoting the city as historic by targeting elderly members of historical societies by placing ads in their newsletters Differentiated
Designing more than one promotional message, with each communicating different benefits Also targeting families by communicating a promotional message about the importance of children learning history
Differentiated Marketing Strategy
A differentiated marketing strategy is when a company creates campaigns that appeal to at least two market segments or target groups. For example, a store can promote a sale that appeals to people in at least two cities or locations, or a company can market a product that appeals to women in at least two age groups. Differentiated marketing strategies can target many more than two segments; shoe companies often create campaigns that appeal to both men and women in a variety of age groups. Differentiated marketing strategies can also use different messages in the same campaign for different segments. For example, a retailer might market low cost to a budget-conscious segment and product quality to an affluent market segment.
Concentrated Marketing Strategy
A concentrated marketing strategy is targeted to one specific market segment or audience. For example, a company might market a product specifically for teenage girls, or a retailer might market his business to residents in a specific town. Concentrated marketing strategies are often geared for smaller groups of people, because they are designed to appeal to a specific segment.
Undifferentiated Marketing Strategy
When discussing differentiated and concentrated marketing strategies, it is also important to understand undifferentiated marketing strategies. Basically, in an undifferentiated marketing strategy, marketers use the same message for all segments of the market. This is similar to mass marketing; marketers typically create a message that appeals to everyone, so the message is often general or simple to allow more people to relate.
To better understand differentiated, concentrated and undifferentiated marketing strategies, it helps to look at an example from each perspective. Assume a restaurant is trying to market its new business. Using a differentiated marketing strategy, the restaurant can appeal to the college crowd by marketing cheap specials on food and drinks, the family crowd by marketing kid-friendly meal options and table entertainment and to the elderly by marketing senior discounts and early-bird specials. Using a concentrated marketing strategy, the restaurant can market its convenient location to a group of residents within 10 miles of the business. Using an undifferentiated marketing strategy, the restaurant can highlight its grand opening celebration.