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Market Coverage Strategies-Gaya3

The document discusses three market coverage strategies: concentrated, differentiated, and undifferentiated. The concentrated strategy focuses marketing efforts on a small segment to maximize penetration. Differentiated strategy divides the heterogeneous market into customer groups and targets each segment differently. Undifferentiated strategy treats the whole market as uniform and uses a single marketing mix. Firms must choose whether to target many segments across few countries or few segments across many countries when expanding internationally.

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Haja Amin
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1K views13 pages

Market Coverage Strategies-Gaya3

The document discusses three market coverage strategies: concentrated, differentiated, and undifferentiated. The concentrated strategy focuses marketing efforts on a small segment to maximize penetration. Differentiated strategy divides the heterogeneous market into customer groups and targets each segment differently. Undifferentiated strategy treats the whole market as uniform and uses a single marketing mix. Firms must choose whether to target many segments across few countries or few segments across many countries when expanding internationally.

Uploaded by

Haja Amin
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MARKET COVERAGE

STRATEGIES
INTRODUCTION

The market coverage strategy is one of the important


decisions to be made in international business which is
determined by consideration of external and internal
factors.

The company should decide whether it should


concentrate on one or a few markets or should spread
over all the markets. If the company decides to take
over the whole market, it can be reached by single
marketing mix or whether each of the different markets
by separate marketing mix.
The three important alternate market coverage strategies
are.,
 Concentrated marketing strategy

 Differentiated marketing strategy

 Undifferentiated marketing strategy


CONCENTRATED MARKETING STRATEGY

Concentrated marketing entails focusing on a part of


the market.
→ Majaro states that, “the concentrated marketing

approach is based on a decision to achieve a


maximum penetration in one or more segments to the
exclusion from the rest of the market. Instead of
spreading itself thinly in many parts of the world, it
decides to concentrate it forces on a few clearly
defined areas.”
Companies with ethnocentric orientation by
sometimes adopt a concentrated marketing strategy in
respect to the product extension strategy.
Even polycentric orientation may go well with
concentrated marketing.
The major disadvantage of it is the risk of keeping all
the eggs in one basket.
Niche marketing

Niche marketing is an appropriate strategy for small


firms. The concentrated marketing strategy sometimes
takes the form of niche marketing.
Concentrating on a market segment that is not
satisfactorily served or which is ignored by the major
players is niche marketing.
This kind of marketing or strategy is successfully
employed by many Japan companies.
Example:
In the US toothpaste market dominated by large
multinationals, Balsara identified a niche for a herbal
dental product.
Similarly, the Vicco identified a niche in the overseas
market for a sugar-free toothpaste (Vicco SF).
List of firm that has adopted this strategy:
Johnson & Johnson, EG&G and Illinois Tool works.
DIFFERENTIATED MARKETING STRATEGY
It involves market segmentation which is the process
of dividing Heterogeneous market for a product into
group of customers.
In market segmentation the total market is viewed as
a series of demand curve. Each one represents a
separate market segment.
The main objective of this strategy is to increase the
business of the company by more effectively serving
the needs of the different segments.
Differentiated marketing is based on the appreciation
of the Heterogeneity of the market.
There are a number of common basis for segmentation
 Geographic factor

The global market may be segmented geographically


such as Middle East, North America, South Asia and
so on.
 Demographic factor

Factors such as age, sex, income, religion form the basis


for market segmentation for a number of products.
 Psychographic factor

Markets are segmented psycho graphically on the basis


of factors such as life style social class and
personality.
UNDIFFERENTIATED MARKETING
STRATEGY
“In the language of economic theory, in market aggregation
the seller assumes there is a single demand curve for his
product”
It is characterized by market segmentation, i.e., treating a
whole market as a single unit whose parts are alike in all
major aspects. The entire market is sort to be tapped with
the single marketing mix.
Undifferentiated marketing are appropriate when the
market is Homegenous.
MARKET EXPANSION STRATEGIES
There are two strategies for market expansion
 Enter new markets in existing countries.

 Enter new country markets for already identified and served


market segments.
These two dimensions in combination produce the following
four strategic options
 Concentrate on a few segments in a few countries

 Country concentration and segment diversification

 Country diversification and market segment concentration

 Country and segment diversification.


CONCLUSION
Whatever may be the basis of segmentation, a
market segment should posses certain essential
characteristics, they shall be measurable,
substantial, differential, accessible and
actionable. Segmentation is common in
international marketing.
THANK YOU!

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