How Can Differentiated Marketing Benefit Your Business?
As a startup grows, its target markets often grow and mature, expanding to include whole new categories of consumers. So, business owners should take advantage of this chance and quickly change their marketing plans to get the attention of different market segments.
To do this, you can use differentiated marketing, which is a tried-and-true method of marketing. With this method, companies can reach out to more than one type of customer by using focused marketing strategies. This gives them a wider marketing reach and more buyers to think about.
What Is Differentiated Marketing?
Differentiated marketing is the way that marketing campaigns and activities are used to reach out to two or more groups of consumers. This can include buyers who are from different groups, have different needs, or just have different tastes.
Marketers can reach these different groups by, for example, making different versions of campaign messages for different groups, adjusting special offers for shoppers with different amounts of disposable income, or even setting up a number of product lines at trade shows and events in ways that will attract each of the groups of buyers they want.
Differentiated marketing is not the only method that can be put into a certain category based on how it divides the market. Concentrated marketing is a form of advertising in which a business focuses on just one very specific group of customers.
This is something that brands often do when they are just starting out or when they want to reach a niche market. It could also be used by businesses that sell specialized goods and services to small groups of customers.
How Can Differentiated Marketing Benefit Your Business?
So, why should business owners spend time making a marketing plan that stands out? Because, as we’ll see below, the approach gives businesses, especially small ones, a lot of competitive advantages. As an example:
1. It Speaks to the Needs of Your Customers
Differentiated marketing lets you show how your products and services meet the needs and expectations of different types of customers. This helps you generate leads and keep them interested in the early stages of your marketing funnel.
One way to do this would be to start a promoted social media marketing campaign that shows off the features of your product that best solve the problems of your target audience.
This would make sure that the right positioning is given to the right segment, making use of what you know about your audience’s unique situation to create the demand you want.
This is a good way for business owners to get people interested in their products and services and get them to think about buying them.
2. It Increases Customer Breadth
When making traditional marketing plans, business owners tend to focus on their most important customers and think of ways to engage them and move them along the buyer journey to the point where they buy.
This strategy is important when building a new brand, but once a business has won over its main customer group and gained more traction in the market, it’s time to focus on getting a wider range of customers.
One of the main benefits of differentiated marketing is that it helps you reach more people with your brand’s marketing. It does this by letting you appeal to different groups of people through complementary promotional activities.
Running a special offer for two or more groups of shoppers is one way to use differentiated marketing to reach a large number of buyers.
One type of product in the promotion might appeal to your most loyal customers, while the other is meant to bring in new customers who usually buy your competitors’ products but haven’t thought about yours yet.
These types of sales can even be time-sensitive. For example, you could offer discounts on certain products during off-peak business hours to attract new buyers, and you could promote frequently bought products during peak business hours to get back in touch with existing or inactive customers.
3. It Achieves a Better ROI
Even though differentiated marketing requires more detailed processes for segmenting consumers, more planning, and more monitoring of the execution, it can often give you a much better return on your marketing investment than traditional marketing strategies.
By focusing on two or more types of customers, you have a better chance of selling more products that meet the different needs of those customers.
These segments may also be new to a brand and, as a result, be entirely new sources of revenue. This will set a precedent for what to expect from future promotional ROI.
Also, because this method requires you to be very clear about who you want to reach and how you want to market to them, you can get a more accurate idea of your ROI before you start.
So, you won’t fall into the trap of spending money quickly to reach a single, large group of consumers whose needs aren’t met by your products and services, which would be a waste of marketing dollars.
4. It Supports a Growth Strategy
In the end, differentiating your marketing helps your brand grow by attracting a wider audience and getting a bigger share of the market. This might happen at the same time as your company moves into new markets, releases new products or services, or tries to change its image.
Differentiated marketing that is done well shows that you can meet the needs of different consumers or even the same buyers as their needs change over time. It also shows that you can adapt to changes in the market and rise to the challenge of beating your key competitors.