Multiple-segment Strategy:

In a multiple-segment strategy, two or more groups of potential customers are identified as the target markets. Then the marketer develops a marketing mix to reach market-segment.

A marketer usually develops a different version of his/her basic product for each market-segment. But the market segmentation can be established even if the product is not changed. It may be accomplished by either separate distribution channels or promotional appeals each tailored to the particular market-segment.

Advantages

• A multiple-segment strategy tends to a greater sales volume than a single-segment strategy
• It is beneficial for a company, if it faces seasonal demand.
• If a company has excess production capacity, it may look for additional market-segments to absorb its excess production capacity.

Limitations

• High costs exist. Marketing to multiple-segments is expensive in respect of production and marketing of products.
• Producing mass quantities of one model and one colour is less expensive than producing many varieties with many models, colours and sizes.
• Multiple-segment strategy increases marketing expenses in many ways e.g.
• inventory cost increases because each style, colour etc, require adequate inventory
• advertising costs increase because each market segment requires different advertisement.
• Promotional activities other than advertising, become expensive
• Distribution costs will also go up if sustained efforts are made to make products reach market-segment
• Administration expenses will also increase because managers will plan, organise, direct and control or implement various different marketing programmes.