Market coverage is the assessment of the marketplace and subsequent determination of how much of the marketplace the business should cover with their advertisement for a particular product or service.

1. MARKET COVERAGE STRATEGY

2. Market coverage
Market coverage is the assessment of the marketplace and subsequent
determination of how much of the marketplace the business should cover
with their advertisement for a particular product or service.
By taking into account factors like the culture and buyer behaviour,
economy and other factors, businesses assess the marketplace and
understand their product’s relationship to each market. This understanding
helps them formulate an effective market coverage strategy.

3. Market coverage strategy
• Market coverage strategy is the beginning of a marketing plan and
precedes everything else. It depends on both internal and external factors
and it is the business’s prerogative to determine whether it wants to
spread throughout the market or focus on specific markets.
• A small firm; with limited resources, for example, might decide to
concentrate its marketing efforts only to a few marketplaces. On the other
hand, a large firm, with adequate marketing muscle power and resources,
might decide to go all out and expand its marketing efforts to all available
market segments.

4. Market coverage Strategies
The different type of market coverage strategy that can help businesses reap
the maximum dividends from their investments on advertising
their products or services. Listed below are the different kinds of market
coverage strategy:
 Undifferentiated marketing strategy
 Differentiated marketing strategy
 Concentrated marketing strategy

5. Undifferentiated marketing strategy
▪ Also called Mass marketing.
▪ The entire market is considered as a single unit.
▪ This kind of market is characterized by market aggregation and a
single marketing mix strategy is thought to be effective for the entire
market.
▪ The strategy here assesses the common consumer needs in the
marketplace and then offers one product or service for all the markets or
multiple products and services for all markets.

6. ▪ This kind of marketing strategy became prominent when factories started
manufacturing large quantities of undifferentiated products that met the
needs of all consumers.
▪ E.g.: Henry Ford
▪ With lesser work hours, minimum marketing research data, and no
variation of content, undifferentiated marketing has far less operating cost
and this is one of the cheapest forms of marketing strategy. The basis for
this kind of market coverage is the quantity and not quality and thus it has
a wider reach than other kinds of coverage strategy.
▪ The wider reach helps businesses get better brand recognition.
▪ Businesses adopting this coverage strategy might also face the possibility of
upsetting consumers who might prefer customized products over
undifferentiated products.

7. Differentiated marketing strategy
▪ A mass marketing approach is done away with and businesses customize
their marketing strategy for individual target markets. The business might
decide to target several market segments or focus on a selected few
segments.
▪ Dividing the market into segments that have similar consumer
demographics, come under the same geographic area, have similar
psychographs and nature of consumers.
▪ E.g.: Detergents

8. ▪ Businesses have the option of differentiating their marketing strategy in
three ways:
1. by modifying the product
2. by offering different levels of service
3. by offering products through different channels
Advantage: It helps businesses meet the exact need of their target
consumers, thus increasing the possibility of overall sales.
Disadvantage: High cost related to Designing customized product offerings
and then having a customized marketing effort to each customer group,
cannibalizing their own products and inconsistent message through different
marketing campaigns.

9. Concentrated marketing strategy
▪ The strategy focuses on a particulars section of the market.
▪ Businesses first identify the targeted market and then concentrate their
marketing efforts on this segment.
▪ This kind of approach employs concentrated marketing efforts to gain a
large share of the small market segment.
▪ Concentrated marketing coverage strategy is particularly useful for smaller
businesses with limited resources or businesses that want to cater only to a
specific set of population.

10. ▪ The firms will have the maximum ROI on their advertising strategy but also
are able to have a positive impact on marketing and distribution while
simultaneously saving costs through the large-scale production of limited
products.
▪ E.g.: Rolls Royce, Rolex
Advantage: Target consumers of this segment become loyal customers and
continue to favour even newer products by the same firm.
Disadvantage: slackening demands having an adverse effect or ignoring other
profitable segments.

11. Thank You!