Market Coverage Strategies

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Market coverage strategy is determined by the external and internal factors. Accordingly, the market coverage strategy includes: concentrated marketing strategy, undifferentiated marketing strategy, and differentiated marketing strategy. It is for the company to decide whether the whole market has to be covered with a single marketing mix or does different markets need a separate marketing mix.

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Market Coverage Strategies

  1. 1. Chapter 8Market Coverage Strategies International Marketing Chapter-8 Market Coverage Strategies
  2. 2. Objectives What are the market coverage strategies What is concentrated marketing strategy What is the role of market segmentation and differentiated marketing International Marketing Chapter-8 Market Coverage Strategies
  3. 3. Introduction The market coverage strategy is determined by consideration of external and internal factors. A company should decide whether it should concentrate on one or a few markets or should spread over all the markets. International Marketing Chapter-8 Market Coverage Strategies
  4. 4. Market Coverage Strategies1. Concentrated marketing strategy2. Undifferentiated marketing strategy3. Differentiated marketing strategy International Marketing Chapter-8 Market Coverage Strategies
  5. 5. Concentrated MarketingStrategy The concentrated marketing approach is based on a decision to achieve a maximum penetration in one or more segments to the exclusion of the rest of the market. Instead of spreading itself thinly in many parts of the world, it decides to concentrate its forces on a few clearly defined areas. International Marketing Chapter-8 Market Coverage Strategies
  6. 6. By employing the strategy of marketsegmentation, a company can designproducts that really match the marketdemands.Concentrated marketing some times, gowell with polycentric orientation also. International Marketing Chapter-8 Market Coverage Strategies
  7. 7. Niche MarketingNiche marketing is concentrating on amarket segment that is not satisfactorilyserved or which is ignored by the majorplayers.Such a strategy avoids a direct andimmediate competition with major firms.A number of Indian companies have alsoused niching as a foreign market entrystrategy. International Marketing Chapter-8 Market Coverage Strategies
  8. 8. Criteria For Selecting A Niche1. The niche should be of sufficient size to be profitable and it has growth potential.2. There is no much competition and that it is not of interest to major competitors.3. The firm has the capabilities to serve the segment so well that it will have an edge over other firms.4. The firm will be capable of defending its domain. International Marketing Chapter-8 Market Coverage Strategies
  9. 9. Undifferentiated Marketingstrategy It is characterized by market aggregation, treating a whole market as a single unit whose parts are alike in all major respects. The entire market is sought to be tapped with a single marketing mix. International Marketing Chapter-8 Market Coverage Strategies
  10. 10. Market Segmentation AndDifferentiated Marketing Differentiated marketing, essentially involves market segmentation Market segmentation is the process of dividing heterogeneous market for a product into groups of customers so that each such segment is amenable to a separate marketing mix. Differentiated marketing is based on the appreciation of the heterogeneity of market. International Marketing Chapter-8 Market Coverage Strategies
  11. 11. Differentiation Can Be OnFollowing Parameters1. Geographically2. Demographically3. Psychographically4. Nature of the customers International Marketing Chapter-8 Market Coverage Strategies
  12. 12. Summary The external and internal factors determine market coverage strategy. The market coverage strategy includes1. Concentrated marketing strategy2. Undifferentiated marketing strategy3. Differentiated marketing strategy. company has to decide whether the whole market is to be covered with a single marketing mix or different markets has to be covered with a separate marketing mix. International Marketing Chapter-8 Market Coverage Strategies

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