The results of analyzing market segments leads the marketer to consider one of the following target marketing strategies.
Undifferentiated or Mass Marketing
Under this strategy, the marketer attempts to appeal to one large market with a single marketing strategy. While this approach offers advantages in terms of lowering development and production costs since only one product is marketed, there are few markets in which all customers seek the same benefits. This approach was very popular in the early days of marketing (e.g., Ford Model-T),but today few companies now view this as a feasible strategy.
Differentiated or Segmentation Marketing
Marketers choosing this strategy try to appeal to multiple smaller markets with a unique marketing strategy for each market. The underlying concept is that bigger markets can be divided into many sub-markets and an organization chooses different marketing strategies to reach each sub-market it targets. Most large consumer products firms follow this strategy as they offer multiple products (e.g., running shoes, basketball shoes) within a larger product category (e.g., footwear).
Concentrated or Niche Marketing
This strategy combines mass and segmentation marketing by using a single marketing strategy to appeal to one or more very small markets. It is primarily used by smaller marketers who have identified small sub-segments of a larger segment that are not served well by larger firms that follow a segmentation marketing approach. In these situations, a smaller company can do quite well marketing a single product to a narrowly defined target market.
Customized or Micro Marketing
This target marketing strategy attempts to appeal to targeted customers with individualized marketing programs. For micro marketing segmentation to be effective, the marketer must, to some degree, allow customers to “build-their-own” products. This approach requires extensive technical capability for marketers to reach individual customers and allow customers to interact with the marketer. Digital networks, in particular internet and mobile technologies, have been catalysts for micro-marketing strategy. As more companies become comfortable utilizing these technologies, micro marketing is expected to flourish.