Industrial Marketing

4 steps, 8 features, and all benefits of Differentiated Marketing

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Differentiated marketing is a strategy in which a vendor creates marketing campaigns that target two or more distinct groups of its target market. It enables businesses to build brand awareness, expand their market outreach, better serve their customers’ requirements, and generate revenue.

Regardless of your market segment, you have to stand out and show that your product or service offers a distinct benefit. Securing your company’s uniqueness may benefit you at every stage; from recruiting investors to launching your business or convincing customers to buy.

Differentiated marketing strategy is a method to ensure that you are delivering an unique offering. Differentiation method used by industry leaders in all areas to ensure that their business and product stand out, regardless of what they are offering. Differentiation strategies are a basic principle, but when executed well, they can be very influential and profitable. We’re going to look at differentiation marketing strategies in detail now.


Personalized marketing approach with tailored customer experience


Same marketing messages to all segments of the market


Targeted at smaller and specific segment of the market

Types of target market strategies

Prior to starting marketing campaigns, you must first determine your target market. You may identify and understand your prospective customers based on shared qualities based on your product offering.

Following segmentation of your audience, the following stage is targeting. Targeting is the process of identifying a section or segments to whom you will promote your offering and message with the aim of converting them. Following are the three different marketing strategies that can be implemented:

  1. Differentiated marketing strategy
  2. Concentrated marketing strategy
  3. Undifferentiated marketing strategy


Choosing which of these strategies to follow is the first step in developing a successful, long-term marketing plan for your organization. Let’s begin with the primary issue of our discussion: the definition of differentiated marketing.

differentiated marketing strategy

What is differentiated marketing?

Differentiated marketing strategy, sometimes referred to as multi-segment marketing strategy, enables an organization to reach various customer segments and target markets with distinctive marketing messages. It is a synthesis of concentrated and undifferentiated marketing strategies.

Differentiated marketing has the ability to produce more sales than concentrated or undifferentiated marketing. However, this comes at the penalty of increasing expenditures. Differentiated marketing strategy imposes additional expenses for the business since it necessitates the production of customized products for each target niche.

Similarly, each distinct product and market niche has its own marketing strategy and execution, including distinctive messaging, campaigns, promotional techniques, and investments. Costs can quickly accumulate, particularly if you target a large number of distinct market groups.

Differentiated marketing strategy

A differentiated marketing strategy is one in which the business decides to offer distinct products and services to each of the market segments it targets. Additionally, it is frequently referred to as a multi-segment marketing strategy.

Each market segmentation is addressed differently, since the seller company offers distinct benefits to each segment. The objective of using different target market strategies is to assist the company in increasing sales and market share in each of the customer segments it targets.

When a company generates marketing campaigns that aim to at least two different markets, this is considered as a differentiated marketing approach. For instance, an electronics retailer may offer a promotion that appeals to customers of at least two cities or geographic regions. Like this, a B2B company may sell a product or service to customers in at least two different industrial segments.

Differentiated marketing strategy also can target several customer segments. For example; footwear companies typically design advertising campaigns that appeal to men and women of various ages. Additionally, it may include various messages for different segments within the same marketing campaign. For instance, a store may target a budget-conscious section with cheap prices and a wealthy segment with high-quality premium products.

A brand can use this marketing technique to build several campaigns that communicate with at least two customer groups of their target market. Let’s give an example from a B2C sales model. Consider a natural products store. It might build an email or newsletter campaign to pitch a limited-time offer and appeal to customers in various zones, as well as consumers of all ages.

Consequently, a killer differentiated marketing strategy enables your business to reach a broader audience and more revenue.

undifferentiated marketing strategy

4 Steps of differentiated marketing strategy

  1. Identify your target customers. The most critical stage is to identify your primary potential customers in the specific market. To do this, you must identify the primary characteristics of your prospects, such as their age, location, gender, marital status, job status, and income, as well as any other information that can assist you in segmenting them.
  2. Define your customers’ specific needs and demands. Conduct surveys to ascertain which goods your clients prefer and which services assist them in resolving their issues. Additionally, use marketing analytics tools to analyze your customers’ purchasing behaviors in order to determine which products (goods or services) they purchase on a consistent basis.
  3. Create offers for distinct customer segments. Now that you’ve identified your customers’ needs, it’s time to meet them with your special unique offerings. Consider the case where one of your target groups wants to buy organic food. With this in mind, you may create a unique offer for this market niche.
  4. Determine the promotional channels that you intend to obtain. To reach your clients, you must use the most effective methods of product promotion. For instance, if your target audiences are mostly social media users, consider establishing advertising and promotion campaigns for social media platforms.

8 Features of differentiated marketing

  1. This is the first and most important feature. Your company should be able to appeal to minimum two clearly identified customer segments via a differentiated product (good or service) and a segment- specific marketing approach.
  2. In this case, the competencies and resources of the business are critical to the achievement of differentiated marketing strategy. These elements enable the business to manufacture and promote a variety of products that are required by the customers.
  3. Differentiated marketing should assist a business in diversification, revenue maximization, and brand reputation as a sector authority in order to satisfy various segments.
  4. The company must appeal to at least two segments (measurable, reachable and different). Greater relevant client segments equates to more chances for differentiated marketing in this scenario.
  5. If the company expands the sectors it serves, it should get the same effect on revenue and profits. At the end of the day, more customers should mean more revenue.
  6. This is a more appropriate and practical strategy for wholesale and retail enterprises.These companies cater to a diverse range of customer segments. It may not be suitable for industrial manufacturers.
  7. The company always has to maintain product differentiation across all customer segments and to preserve its brand image.
  8. The company must strike a balance between revenue generated by different segments and related costs.
market targeting

Benefits of differentiated marketing

Differentiated marketing aims to provide each section of your audience with a more personalized approach and tailored customer experience. By customizing your offer to each customer segment, you increase the probability that your offer will engage with the requirements of a certain target customer. Additionally, you are making it simpler for individuals to interact with your brand and products.

Differentiated marketing is the default strategy for small companies, particularly those looking to expand. By focusing on a highly specific and defined ideal customer profile, a small company may increase its customer base, grasp its niche market, and expand sustainably.

Niche market segment

Seller companies can effectively target niche markets when rivals lack the necessary products to satisfy their customers. Companies with the best-fitting offers have the most potential for revenue and profit generation.

Using resources efficiently

Customer needs and expectations differ per market. When a business focuses on differentiated marketing strategy and segmentation is based on consumer demands and preferences, allocating available resources efficiently becomes simple. It will assist the company in gaining a bird’s eye perspective of its entire marketing objectives and achieving those objectives.

Disadvantages of differentiated marketing

More market segments equals greater advertising teams and more advertising expenditure. Typically, the cost of creating and executing several campaigns is higher. Your firm must utilize segment-specific communications and strategies, and the associated resources can quickly mount up.

Higher costs

Selling customized products to specific client segments is a costly endeavor. Generating many versions and variants of a product line requires more time and money in terms of research and development than manufacturing a single product. Additionally, to convey different marketing messages, businesses must actively promote their products to the specific market audience.


Differentiated marketing frequently places considerable importance on the product’s quality and the service provided as value propositions. They are not frequently low-cost alternatives and might not compete with suppliers that can provide lower pricing.

Product diligence is critical if you want to convince customers on the value and quality of your products. Therefore, you need an effective marketing strategy to explain your product features to your target market.

Differentiated marketing examples

Philips is an excellent example of a company that leverages differentiated marketing strategy to reach various customer segments. Apple and Casio, on the other hand, tend to appeal to two or more customer categories, but not to every group.

A bistro, for example, can serve both university students and families with children. For university students, the restaurant may provide affordable meal and beverage menus. On the other hand, it may appeal to parents with a kid-friendly setting and dining alternatives. So, this bistro should use separate marketing strategies for each of its target customer profiles.

types of B2B marketing

Other types of target market strategies

Nowadays, businesses employ a variety of tactics to reach out to clients and accomplish their objectives. There are three primary techniques to marketing: differentiated, undifferentiated, and focused. We’ve previously covered everything there is to know about distinct marketing. Now, let’s examine the other two market segment methods in further detail.

Concentrated marketing strategy

Concentrated marketing strategies are those that are directed at a single market group or audience. For instance, a corporation may sell a product only to adolescent females, or a shop may target inhabitants of a certain area. Concentrated marketing techniques are frequently targeted at smaller segments of the population, since they are meant to appeal to a certain demographic.

Undifferentiated marketing strategy

It is equally critical to comprehend undifferentiated marketing strategy while considering differentiated and concentrated marketing strategies. In a nutshell, marketers that implement an undifferentiated marketing approach provide the same message to all groups of the market. This is related to mass marketing; marketers generally design a message that appeals to everybody, which is why the message is frequently broad or basic.


Differentiated marketing is a commonly utilized approach that enables businesses to connect with a variety of target groups and grow revenue. By developing unique campaigns, businesses may cater to the requirements of distinct demographics.

When the differentiated marketing strategy is implemented effectively, it may establish a very significant and established market presence. It will be difficult for competitors to compete with you due to your customers’ strong affection for offers that address their specific demands.