A firm adopting this marketing strategy get the following advantages: Market aggregation enables a firm to produce a large scale at large scale. It has been reviewed & published by the MBA Skool Team. Advantages: very cost effective, low marketing complexity, reaches anyone. About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service Etiquette: Meaning, Types, Benefits and Basic Rules, 10 Hacks for Mastering Public Speaking Skills. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. However, the opposite of creating differentiation is undifferentiated marketing and here we are presenting the undifferentiated marketing concept. So, lets assume that the East African community was their target market. Thus, they will use mass marketing. The advantages and disadvantages of marketing via radio or television will clearly be considerably different to those of print. While the primary aim of any marketing strategy is to promote the product, the asset-led strategy focuses on the product itself, rather than … Also called Unsegmented Marketing or Mass Marketing. Strategy, More on Management | Return to Management Dictionary |. Advantages: very cost effective, low marketing complexity, | Mass Customization Advantages and Disadvantages of Concentrated Marketing Advantages. MBA Skool is a Knowledge Resource for Management Students & Professionals. Following that, once they develop their portfolio and get enough brand equity, they move to the differentiated marketing strategies instead of undifferentiated marketing. This East african community consists of many countries like Uganda, Kenya, Tanzania and others. Undifferentiated marketing strategy is cheaper than the other marketing strategies such as differentiated marketing as well as concentrated marketing. This article has been researched & authored by the Business Concepts Team. Thus, Kenya does not need Milk powder, but might need more ice cream. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, Psychological pricing and its application in marketing, What Is Market Allocation? With low production costs, less risk involved, low marketing research and advertising cost as well as higher potentials of sales volumes and efficiency of scale in a much larger market, the mass marketing strategy is assuming a high degree of similarity conducting to overgeneralization in a society where people are fighting every day to be more and more unique. Advantages and Disadvantages of Undifferentiated Marketing. Marketing | Analytical You can appeal to your local audience by using a local radio or television station. Media Selection: Media Characteristics, Types, Advantages and Disadvantages, Philip Kotler on Today's Relevance of Mass Advertising, Compare with: Theories, Career and Examples, What is Marketing - Definition of Marketing, The Marketing Concept - Concept of marketing. Let's stay in touch :), if you were a new company that has developed a range of fruit drinks made from gold kiwifruit, how would you describe the 4ps for undifferentiated marketing, The product is clear from your statement. This is because there is so much competition nowadays, that you have to target each market specifically. However, this does not mean that it is going to be more profitable. If used for much longer time it might result in lost customers who might be specifically courted by competitors. and mass advertising. I love writing about the latest in marketing & advertising. is (still) scarce and when the product has mass appeal. sales, can be wasteful. Completely free. Thus, companies build larger product portfolios, and then design marketing communications so that each of the product / SBU has its own strategy to succeed. whereby differences within a market are ignored. Undifferentiated marketing is also known as mass marketing, which consists of ignoring any of the market segments and presenting the same product / service to the entire market that you are targeting. The top-rated discussion topics about Undifferentiated Marketing. Disadvantages: ignores segmentation, may lead to disappointing sales, can be wasteful. | Market Segmentation Advantages of Undifferentiated Marketing Strategy. © 2020 12manage - The Executive Fast Track. A differentiation strategy helps incorporate features in the products which helps to differentiate the product from the competition. Quizzes test your expertise in business and Skill tests evaluate your management traits. Or are we just being confused by the name “undifferentiated marketing” ? I would recommend reading posts on channel expansion or network expansion on Marketing91. A single Keep the price high for now, and later on give trade discounts or price discounts. This ends our Undifferentiated Marketing summary and forum. This approach typically relies on mass manufacturing, mass distribution Thus, at this time the company will not focus on differentiation but undifferentiated marketing. Some of the main benefits of the undifferentiated marketing strategy is that it is less based on a research intensive approach and it allows a wider reach of a bigger audience. Here you will find professional advices by experts. Segmentation refers to the process of dividing the market of consumers into groups based on one or more shared internal or external characteristics. reaches anyone. This is because there is so much competition nowadays, that you have to target each market specifically. The Management Dictionary covers over 2000 business concepts from 6 categories. Large production of offers various economics. Why undifferentiated marketing cannot be used for a multi product or a deep portfolio company is explained below with the example of Arla foods. All names of their owners. Advantages: There are many radio and television stations out there. Otherwise, if your product is unique, then try skimming price. Target Market Approaches for Undifferentiated Marketing, One or limited number of products under one brand for many types of consumer, • Wider Audience: The number of successful hits is high despite the low probability of single person turning up because of its wider audience, • Marketing research costs and advertising costs are relatively low, • Higher potential of sales volume and economies of scale in a much larger market, Disadvantages of Undifferentiated Marketing, • One of the most important drawbacks is the lack of direction it provides, • Ideally undifferentiated marketing strategy is used in short term. Disadvantages: ignores segmentation, may lead to disappointing This type of marketing can be a great success for those companies who have limited resources. On top of it, making it profitable is more difficult. I do not know the market you are existing in else i would have added more to the product criteria. Advantages of Undifferentiated Marketing • Wider Audience: The number of successful hits is high despite the low probability of single person turning up because of its wider audience • Marketing research costs and advertising costs are relatively low • Higher potential of sales volume and economies of scale in a much larger market . Your email address will not be published. Henry Ford epitomized this strategy when he offered the model T-Ford in one color, black. Marketing in new economy - How marketing is updating itself? A new company has started which is into shoe manufacturing. More information. Promote with btl promotions at the start. Undifferentiated marketing is also known as mass marketing, which consists of ignoring any of the market segments and presenting the same product / service to the entire market that you are targeting.There are very few brands in the market which are using undifferentiated marketing. Rather they will want to create awareness. As on date, it manufactures all types of shoes, with variants in design and pricing. These companies cannot expand after a certain level and need a concentrated efforts for a selected niche. Advanced insights about Undifferentiated Marketing. Introduction. or service (line) and marketing strategy. Thus you will find that undifferentiated marketing or mass marketing is an an idea for small companies coming to the market with only one product or service thereby using mass marketing. Undifferentiated Marketing is appropriate when all the consumers have same preferences and the market shows no natural segments. However, it is not so. So by using undifferentiated marketing, we are coming to the conclusion that Arla foods will have the same marketing strategy for all its dairy products. Marketing Mix | Bringing the same product in all the countries with the same type of undifferentiated marketing will end in complete failure. As it sounds, it might be considered that we are taking some steps back in the past, when there was only one marketing strategy for all products and services, no matter the culture, demographics, social factors, etc.