Differentiated Marketing: The ultimate guide with strategies

Differentiated Marketing

Differentiated marketing is a smart strategy that focuses on providing separate and unique offerings to the company's different market segments, also known as multi-segment marketing. 

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Each segment the company targets is approached in a particular way as they aim to provide catered and unique benefits to the different segments. A differentiated marketing campaign aims to increase the overall sales and market share across the different segments of the large consumer population. Focus well on your digital marketing funnel.

The biggest challenge with a differentiated marketing campaign is that each market segment would require a different marketing plan and execution strategy, which would ultimately mean more brainstorming about the messages, more research on consumer behavior, and extra cost for promotional tactics. At the same time, from the company's perspective, they would need to create unique products that would fit each target segment, which ultimately leads to more expanse.

However, every cloud has a silver lining. Also, most companies put a dedicated budget towards differentiated marketing campaigns as they know that a successful differentiated marketing campaign could help them penetrate new markets and establish their presence, which would be challenging for their competitors to displace. As the company has already invested a lot of money and time creating the right product for the different marketing segments, it generates brand advocacy and a strong affinity with products and offers. It ultimately leads to a loyal customer base, more sales, reach into new markets, and ultimately more revenue and more scope of success with a positive and J-curve graph movement of the revenue.

What are the advantages of differentiated marketing?

Differentiated Marketing Advantages

• Fulfill diverse needs of the target audience
• Penetrate new market and expand the customer reach
• Improve the sales figures
• Allows businesses to adapt to the changes in customer behavior and thrive even when a source for revenue ends

Differentiated marketing aims at two or more customer segments or markets and typically uses different marketing campaigns and strategies to get the vast customer audience interested in the offers specially catered for them based on their behavior and interests.

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Customer segmentation is when a company divides its customers into various groups based on their similarity to target them with specific marketing messages and maximize the value of each customer to the business.

Differentiated marketing could be of immense help for a company when trying to expand the customer reach and fulfill their specific needs.

Fulfill diverse needs of the target audience

Target Audience

Businesses can easily scale up their revenue by tapping into different market segments and solving their problems with their products. If you have some compelling product that you could offer to multiple markets, you could easily increase your revenue. Many businesses have the objective to diversify their market and build relationships with more real customers. Hence they choose to diversify their advertising methods and bring various services or products they could offer to their customers. Here is a complete guide on voice search optimization.

Penetrate new market and expand the customer reach

Businesses generally have a large target audience. When they try to target all of them with a single marketing campaign, it becomes difficult to touch the pain points of the different marketing segments available in their total target audience pool. From a company's perspective, you could easily cater to a new market when you have specific products. Then with the marketing campaign that is hyper-specific with the problem, location, demographic, and unique selling point, you get to expand your customer reach and penetrate a new market. It would allow more customer acquisition, brand loyalty, and ultimately more revenue.

Improve the sales figures

The businesses get the opportunity to offer their products and services to multiple markets rather than to rely on a single one. It allows them to increase the total sales revenue and ultimately get more word of mouth as they have more customers. The increase in sales figures is directly related to better sustainability of the company and chances of being more profitable than before. Many brands choose to go with differentiated marketing and incorporate multiple advertising methods into their marketing campaign to present themselves in front of a larger customer base and different market segments.

Allows businesses to adapt to the changes in customer behavior and thrive even when a need ends

We know what happened with Blockbuster when they failed to understand the changes in the market and the changes in the emotional aspect of the customer. The biggest problem that an established company has to face is the changes in technology and the changes in consumer behavior. Netflix quickly adapted to the changes and is now a multi-billion dollar company, whereas nobody even remembers the once-famous BlockBuster.

With the help of differentiated marketing, you get to pitch your product or service to more than one market segment, which reduces your dependence on a single market. Even when there are changes in this market segment, and you lose your grip, you still have many more markets that could help you with your future revenue and sustainability as a company. No entrepreneur would ever like the company to get bankrupt and closed. Hence, businesses and start-ups must target more than one market segment and know more about what people need. Differentiated marketing can help businesses adapt to changes within the industries, products, and the overall markets they appeal to.

What are the best strategies to be successful with your differentiated marketing campaign?

1. Narrow down the size of each target market to be better with your marketing message

2. Iterate your product or service to fulfill the need of each market in the best manner

3. Develop the right product for each group to have a competitive advantage and solve the real-life problem of your customers

4. Use digital marketing to hyper-personalized your marketing message and ensure that the right campaign reaches the right market segment

5. Share your marketing materials with your target audience to boost credibility and authority

Narrow down the size of each target market to be better with your marketing message

Narrow down your target audience

You must understand your target market and develop a customer persona around it. When you know your target market, you get the chance to offer better marketing messages that could resonate with your customer's thought process and could ultimately bring you sales. In marketing, it is always the first part to narrow down the target audience based on their age, demographics, location, profession, job title, income, or any other factor that could help you understand and narrow down your audience. For example, suppose a brand targets teen girls with one product and offers ladies in the age group of 30 to 40 another product. In that case, you could easily differentiate them based on their age and marketing message.

Iterate your product or service to fulfill the need of each market in the best manner

product iteration

The first step towards any successful marketing campaign is narrowing down the target audience and creating the customer persona. However, once you know who your audiences are, then comes the next part of understanding their needs and iterating the product or service in a manner that could easily satisfy their needs and make them your brand advocates. In business, you don't serve your customers what you think could be the best for them. Instead, you must go with the data-driven approach and conduct surveys to understand the pain point of your target segment and how exactly you could solve it to differentiate yourself from the competition.

Develop the right product for each group to have a competitive advantage and solve the real-life problem of your customers

competitive advantage

Having a data-driven approach and tracking analytics to find information related to your customers' purchasing habits could help give you insight into the type of products and services your target audience generally prefers to buy. Learn to create a PPC marketing campaign in 2022.

Once you completely understand the buying behavior and their purchasing power, you could easily make changes to plan to develop the right product for each group to have a competitive advantage and solve your customers' real-life problems with SEO and content marketing. If you run e-commerce, here is how to track your e-commerce conversion rate.

The first step is to understand whether a certain product or service fulfills the need of your consumer and then develop products or services to tailor these markets' needs.

Use digital marketing to personalize your marketing message and ensure that the right campaign reaches the right market segment

digital marketing

Digital marketing has allowed brands to connect with their target audience. The brands could easily segment and narrow down the target audience based on age, location, gender, demographics, behavior, etc. Based on your customer persona, you could easily find which social media channel or the digital marketing channel is mostly preferred by your target audience. You could work with a digital marketing agency like CodeDesign to improve your chances of connecting with the right audience and making more sales and revenue. Codedesign has a physical presence in Lisbon, Zurich and Manchester, but we consider anywhere there's WiFi to be our digital office space. 

Share your marketing materials with your target audience to boost credibility and authority

share marketing materials

You could create several marketing materials like e-books, blogs, podcasts, videos, and many more to share with your target audience and help them move down the digital marketing funnel. The best part of content marketing is that it helps you build credibility and authority in your niche. Authority could be your game-changing factor and competitive advantage in this competitive atmosphere. Read this guide on PPC campaign strategy.

Content marketing is essential for your marketing campaign because it would allow you to be available to your customers every time they have a query. For example, suppose your target audience searched for a query on Google and landed on your website that covered the topic. In that case, you have a great chance to build brand recognition and brand advocacy which could ultimately help you in sales.

Conclusion

Differentiated marketing is a great marketing strategy that focuses on providing separate and unique offerings to the company's different marketing segments, also known as multi-segment marketing. With the help of differentiated marketing, you get to have an opportunity to target a new market, expand customer reach, increase total sales revenue, and increase the competitive advantage.

Feel free to contact us to see the unprecedented growth of your business.

Feel free to contact us to see the unprecedented growth of your business.

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