Many factors need considering when choosing a market-coverage strategy. The best strategy depends on company resources. Concentrated marketing makes sense for a firm with limited resources. The best strategy also depends on the degree of product variability. Undifferentiated marketing is suitable for uniform products such as grapefruit or steel. Products that can vary in design, such as cameras and cars, require differentiation or concentration. Consider the product's stage in the life cycle. When a firm introduces a new product, it is practical to launch only one version, and undifferentiated marketing or concentrated marketing therefore makes the most sense. In the mature stage of the product life cycle, however, differentiated marketing begins to make more sense. Another lactor is market variability. Undifferentiated marketing is appropriate when buyers have the same tastes, buy the same amounts and react in the same way to marketing efforts. Finally, competitors' marketing strategies are important. When competitors use segmentation, imdifferentiated marketing can be suicidal. Conversely, when competitors use imdifferentiated marketing, a firm can gain by using differentiated or concentrated marketing.
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