Differentiated segmentation strategy
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Is it a good idea for a small company to adopt a differentiated segmentation strategy? Explain.
Point out the benefits as well as the dangers of this approach. Does it fit every industry, or would it be better in certain domains and less effective in others?
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Solution Summary
This posting looks at the pros and cons of a differentiated marketing segmentation strategy, and elaborates on which industry it would be best suited for.
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In a differentiated segmentation approach a firm operates in several or all segments and targets different products to each segment.
This is not a good idea for a small company (depending on the industry as I will explain below). A small company should instead be focusing on one product, and selling it to one niche (segmented market). If the firm invests too much ...
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