1. Undifferentiated marketing strategy
Undifferentiated marketing strategy refers to the enterprise treating the entire market of the product as a target market and using a single marketing strategy to open up the market, that is, using one product and a set of marketing plans to attract as many buyers as possible. Undifferentiated marketing strategy only considers the common points of consumers or users in demand, and does not care about the differences in their needs. Producing a single product can reduce production and storage costs; undifferentiated advertising and its promotional activities can save promotion costs; not engaging in market segmentation can reduce the marketing investment of enterprises in market research, product development, and the formulation of various marketing mix plans. This strategy is more suitable for products with wide demand, high market homogeneity, and can be mass-produced and sold in large quantities.
2. Differentiated marketing strategy
Differentiated marketing strategy is to divide the overall market into several market segments and formulate a set of independent marketing plans for each market segment. The advantages of differentiated marketing strategy are: small batches, multiple varieties, flexible production, strong targeting, better satisfaction of consumer needs, thereby promoting product sales. In addition, since the enterprise operates in multiple market segments, it can reduce operating risks to a certain extent; once the enterprise succeeds in several market segments, it will help improve the image and market share of the enterprise. The shortcomings of the differentiated marketing strategy are mainly reflected in two aspects. First, it increases marketing costs: management and inventory costs will increase; since the company must develop independent marketing plans for different market segments, it will increase the marketing costs of the enterprise in market research, promotion and channel management. Second, it may make the enterprise’s resource allocation unable to be effectively concentrated, and even cause competition for resources within the enterprise.
3. Concentrated marketing strategy
In implementing differentiated marketing strategies and undifferentiated marketing strategies, enterprises take the overall market as their marketing goal and try to meet the needs of all consumers in a certain aspect. The concentrated marketing strategy is to concentrate on entering one or a few market segments, implement specialized production and sales, and strive to occupy a larger share in one or several sub-markets. It is suitable for small and medium-sized enterprises with limited resources. Due to the constraints of financial resources, technology and other factors, small and medium-sized enterprises may not be able to compete with large enterprises in the overall market, but if they concentrate their resource advantages to compete in one or several market segments that large enterprises have not yet taken into account or have not yet established absolute advantages, they are more likely to succeed. The limitations of concentrated marketing strategies are reflected in two aspects. First, the market area is relatively small, which restricts the development of enterprises. Second, there are greater operating risks. Once the target market changes suddenly, such as the shift of consumer interests, the entry of powerful competitors, and the emergence of new and more attractive substitutes, the enterprise may fall into trouble because it has no room for maneuver.