Market Coverage Strategies

Marketing managers use three basic market coverage strategies: undifferentiated, differentiated, and concentrated.

An undifferentiated strategy focuses on the common needs of consumers rather than their different needs. Products are designed to appeal to the largest number of potential buyers.

A differentiated strategy decides to divide and target several market segments, a different marketing plan for each segment to maximize sales and increase profits.

Coverage strategy, the concentrated marketing strategy, gears to serve a large share of one or very few markets, and is best for firms with limited resources. This allows firms to gain stronger position in the segments it targets because of the greater emphasis on these targeted segments.