Thursday, November 26, 2009

Differentiated Marketing

A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each.
They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday.
These travelers—usually business travelers—pay high fares but can only fill the planes up partially. The same airlines then sell some of the remaining seats to more price sensitive customers who can buy two weeks in advance and stay over.
Develops one or more products for each of several customer groups with different product needs
Appropriate when it is possible to identify one or more segments with distinct needs for different types of products, example: L’Oreal (Elseve, L’Oreal, Lancome)

ADVANTAGES:
Greater financial success

DISADVANTAGES:
High costs
Cannibalization: Situation that occurs when sales of a new product cut into sales of a firm’s existing products.

sourcehttp://www.slideboom.com/presentations/109777/Principles-of-Marketing:-Chapter-7-(Market-Segmentation,-Targeting-and-%0BPositioning-for-Competitive-Advantage)

2 comments:

TAHIR AZAD said...

i think this technique helps more to customer then the company... COz one customer is paying high rate who want to go on the spot.. and second is paying less rate.. but to some extent helps company tooo in their revenue,,, but more it helps to the customer..

syed hassan raza said...

Differentiated marketing is in my opinion the best strategy for big businesses because it counters all the disadvantages of mass marketing.