While company has differentiated several market segmentation. Company need to select a suitable and profitable segment to enter it. But, how company identify which segment is most valuable to itself and compatible with its current resource and facilities. So, company may use market coverage strategies to solve this problem and choice the best segment to enter it. Market coverage strategic is a method that helps in evaluating the various segments of the marketplace and deciding which segment to cover in the marketing of a particular product.
There are 3 types of general market coverage strategies which will generally adopted by marketer. There are undifferentiated marketing, differentiated marketing, and concentrated marketing.
For undifferentiated marketing, is a market coverage strategy whereby company using single product to attack whole market without concern differences within market. Undifferentiated marketing obtain to mass distribution and mass advertising, which aiming to give the product a superior image in the minds of consumers. It helps in cost saving as single production line, inventoried, distributed, and advertised. So when it comes to market research and product management, costs usually to be lower as only focusing single product.
For example, Nestle company produce MILO to attack to whole market without differentiate market segmentation. This is a milk beverage with chocolate and malt, it has successfully attract wide segment of market likes children, teenager, adult and even old folk. MILO has become part of daily necessary of consumer.
For differentiated marketing, this is multi-segment marketing which market coverage strategy while a company attack to two or more market segment by selling product and unique marketing strategy which tailored to each different segment. It would help company to obtain revenue from different market segment whereby attacking every single market segment. However, it also...