Choosing a Market-Coverage Strategy

Various factors need to be considered when selecting a market-coverage strategy. Which strategy is best based on company resources. When the firm's resources are restricted, concentrated marketing create the most sense. The best strategy also based on the degree of product variability. Undifferentiated  marketing  is  more  suitable  for  uniform  products  like  steel or grapefruit  . Products that may vary in design, like automobiles and cameras, are more suitable to differentiation or concentration. The product's life-cycle stage also have to be considered.

While a firm introduces a new product, it is practical to launch just one version and undifferentiated marketing or concentrated marketing create the most sense. In the mature stage of the product life cycle, though, differentiated marketing start to make more sense. Another factor is market variability. If most of buyers have the similar tastes, buy the same amounts, and react the similar way to marketing attempts, undifferentiated marketing is appropriate. At last, competitors' marketing strategies are significant. When competitors use differentiated or concentrated marketing, undifferentiated marketing may be suicidal. Conversely, at the time when competitors use undifferentiated marketing, a firm may gain an advantage using differentiated or concentrated marketing.