MCOM 2nd Year Global Target Marketing Strategies Study Material Notes Unit Wise Chapter Wise Study Material Notes Question Answer In Our Site a2znotes.com
GLOBAL TARGET MARKETING STRATEGIES
MCOM 2nd Year Global Target Marketing Strategies Study Material Notes | Index
MCOM 2nd Year Global Target Marketing Strategies Study Material Notes Page.1
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Target marketing strategies play an important role in the success of marketing efforts of an enterprise. Keeping in view the different characteristics of buyers, it becomes necessary for a global marketing manager to determine his marketing strategies according to the needs and characteristics of his buyers, so that all physical and human resources of the enterprise may be achieved. The three global target marketing strategies are:
1. Undifferentiated Marketing Strategy or Marketing Aggregation. Undifferentiated Marketing Strategy concentrates upon marketing efforts in the total market. Under this strategy, a single product is offered to the entire market. In other words, all the customers are considered as one group and no change is made in the product. Exactly identical products are offered to each segment of market. Single marketing programme, identical advertisement, single brand, similar look and uniform price are the main characteristics of this marketing strategy, is that the enterprise adopting this strategy do not believe in multiple demand curve for the firm. Efforts are made to develop a single product which may meet the requirements of all the customers and to prepare a single marketing programme which may attract all the customers. There are some examples of market aggregation, such as, soft drinks, milk, certain automobiles and resort services.
Advantages of Undifferentiated Marketing Strategy. A firm adopting this marketing strategy gets the following advantages :
(i) Market aggregation enables a firm to produce at large scale. Large scale production offers various economies.
(ii) It enables the enterprise to adopt the theories of standardisation, specialisation, and division of work. (iii) There is no need of preparing different marketing programmes and policies.
(iv) It enables the firm to make the maximum possible utilisation of its resources.
Disadvantages of Undifferentiated Marketing Strategy. Drawbacks of undifferentiated marketing strategies are as follows:
(i) It is not a consumer-oriented strategy. It concentrates only upon the product.
(ii) The effectiveness of this strategy in the modern consumer-oriented markets is very doubtful because all the consumers can never be of the same tastes and attitudes.
- This strategy may be successful in short-term but in the long-term it8 success is always doubtful.
2. Differentiated Marketing Strategy Or Market Segregation. Market segmentation, as already discussed, means the division of a marketing to several homogenous groups based on common characteristics of consumers. Under differentiated marketing strategy, total market of the enterprise is divided into several segments and different products are offered in different segments. For this reason, this strategy is known as ‘market segregation’. Under this strategy diffefrent programmes are prepred, different advertising campaigns are launched, different methods of sales promotion are adoped and diffefrent policies
Regarding prices, packing, etc., are adopted for example: a shoe market can be divided into several groups, such as, shoes for businessmen, executives professors, students, etc., or on the basis of sex, such as, shoes for ladies, gents and children and so on the importance of this strategy is that offers different products in different manners to different consumers, so that maximum sales may be made, maximum profits may be earned, and maximum satisfactior may be provided to the consumers,
Advantages of differentiated marketing Strategy. Differentiates marketing strategy offers following advantages to the enterprise:
- It is a consumer-oriented strategy.
- It attracts maximum number of consumers from all corners.
- It maximises the profits of the enterprise.
- It provides maximum satisfaction to the consumers.
Disadvantages of differentiated Marketing Strategy. Disadvantages of this strategy are:
- Different products are to be produced for different segments of a market
- It requires intensive marketing research.
- Different marketing programmes and strategies have to be prepared for different segments.
- (t increases the cost of marketing research, product planning, product development, physical distribution advertisement, sales promotion management and administration substantially. This strategy is useful only for the firms producing at large scale.
- Concentrated Marketing Strategy. Concentrated marketing strategy is quite a different strategy. It soes not concentrates upon marketing efforts in the total market. It concentrates upon some selected segments of the market under this strategy, the efforts are made to discover the market segments in