Full market coverage - Sales management

Full Market Coverage

The company must provide all groups of consumers with any products that they may need. The company seeks to cover the market with differentiated and undifferentiated marketing.

In the case of undifferentiated marketing, the enterprise neglects real and potential differences in segments and develops products and a marketing program aimed at the mass market. Efforts focus on the general requirements of the buyer, not on their differences.

Advantages: great savings due to increased scale of production, marketing, advertising, marketing. But in modern conditions, two factors appear to reduce the effectiveness of such marketing: a constant increase in the degree of differentiation of desires, purchasing power, characteristics, values; even if consumers are one segment and have the same needs, they very individually assess the needs of the company, and therefore, the opportunity to develop more profitable modification of the proposal and price discrimination.

Companies with a differentiated marketing strategy tend to occupy a larger part of the market, but for each segment, special products and marketing programs are developed, that is, firms enter the market with specialized offers. Such marketing allows to achieve a high degree of satisfaction with the needs of individual consumers, large volumes of sales. But this strategy assumes no less high costs associated with production, marketing or administrative activities.

Concentration of effort involves:

a) the output on one segment, which allows the company to understand its customers and achieve high efficiency of industrial or household marketing activities through targeted investments. The strategy allows the company to reach a low level of costs and high prices.

In the long term, the strategy entails risks and constraints, with a high degree of risk - the selected segment may not justify the hopes of the enterprise that is mastering it, which sharply reduces due to the economic crisis; if the segment expands and brings a high profit, it attracts the attention of competitors, which is dangerous in the conditions of lowering the life cycle of goods, when the company is forced to make significant investments in the development of new products;

b) Elective specialization - the company selects several segments that are attractive in terms of goals and resources available. Segments can be similar or completely different, but each promises the company high returns. The strategy enables an enterprise to distribute risks in the following directions: so if one segment loses activity, the company has the opportunity to work effectively in another;

c) product specialization - the company concentrates its efforts on the release of one product, which is presented in several market segments, therefore the company enjoys the confidence of consumers and has a reputation of a reliable partner. But there is a possibility that this product will be dislodged from the market by a more perfect product produced by a competitor;

d) market specialization - the company focuses on meeting the various needs of the selected group of consumers, but there is a risk that the budget of the consumers of this group will be cut and they will refuse the services of the seller.

The choice of coverage strategy is determined by the number of identified and potential segments and the resources of the enterprise. A profitable segment should have a high level of current sales, profit margins, growth rates, weak competition. After identifying the objectively attractive segments for themselves, the company should address the question "which one corresponds to its strong business sides."

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