When it comes to marketing, everything comes down to finding that differentiating factor that gives your business an edge over the competition. There are tons of ways to do this, and using the right promotion strategy can make all the difference. The current marketing strategy approaches can be broken down into three main subcategories: undifferentiated, differentiated, and concentrated.
Each is focused on novel ways to target segments of your brand’s customers to deliver relevant information and increase purchases. Of the three, implementing a differentiated marketing strategy tends to be the most successful way to show customers what makes your brand stand out with the market segments that matter.
Let’s explore what a differentiated marketing strategy is and why it’s so important to your business.
What is a Differentiated Marketing Strategy?
For a strategy to be a differentiated marketing strategy, it has to appeal to at least two different market segments. This is an effective way for brands to tailor communication to specific parts of their audience to deliver more personalized experiences to each of their target markets. This is where personalization comes into play. Doing this can give businesses a competitive advantage. Think about it, if your favorite skincare brand started making their own line of haircare, would you be curious about trying it given your preference for their skincare products? Brands that have established themselves in one specialty area are likely to reach new customers as well as existing customers when they find another niche that makes sense for these customers.
Have you ever heard the term, “adapt or die?” Differentiated marketing is also a way for businesses to adapt to changes in their industry and customer demand. Splitting communications between multiple channels makes it possible to advertise to one segment when the demand may have fallen in another. For many, this is crucial to staying lucrative during seasonal changes and times of market uncertainty.
Differentiation can exist in a variety of ways:
- Product – Take for example a vitamin company with one line catering to women’s nutritional needs and another specifically designed for men.
- Price – If a brand has a regular and high-end version of a product, they’re using price differentiation. This allows them to appeal to consumers who value luxury as well as affordability.
- Promotion – Some brands run different ads to reach people in different demographics, when this happens promotion differentiation is in full effect. An example of this would be a beauty line selling a single product, that is promoted differently to different age groups of women.
- Distribution – Distribution differentiation speaks specifically to how the product reaches the end customer. Take for instance your favorite local restaurant. If they offer dine-in, pickup, and delivery, then they are using distribution differentiation.
Doing research into your customers’ pain points can help you develop a strategy that provides them with the right solutions. Differentiators are everywhere, you just have to find the one that makes sense for your brand.
What You Need to Craft a Differentiated Marketing Strategy
The first step in implementing a differentiated marketing strategy is to know your audience. While this piece can sometimes feel like an insurmountable conquest, it’s well worth it to dive in and conduct market research about your consumers. Defining your audience, their demographics, and even what their hopes are will help you tailor your communication to satisfy each segment’s unique needs. Much of making an impactful campaign relies on building emotional connections with customers, so it’s important to put yourself into their shoes and create content that resonates with them.
Once you have determined who you are speaking to, it is time to differentiate your communications. Each separate market segment should have their own unique sets of landing pages, digital ads, blogs, and informative pieces of content to ensure the right sets of consumers get what they need to make a well-informed decision. Remember to always stay authentic, relevant, and actionable in your communication; no matter the segment you’re speaking to.
How to Get the Most Returns from Your Marketing Strategy
To get the most out of your differentiated marketing strategy, proper execution is key. Navigating the complexities of a multi-segment marketing strategy can be a complicated process without the proper resources for success. Leaning on an experienced marketing agency is the best way to level up your strategy and get the results you’re looking for. The marketing consulting team at Cape & Bay is here to help steer your ship in the right direction with comprehensive marketing plans that deliver.
Take your marketing strategy to the next level. Let’s chat.