Page 60 - Marketing the Basics 2nd

52 Marketing: the Basics
pRoDucT speciaLizaTion
This is a strategy employed by manufacturers with a product that can be tailored to meet the needs of different segments. For example, some high-tech software products like People Soft or SAP go after just one type of product (Enterprise Software in SAP’s case) but tailor it a wide variety of segments.
MaRkeT speciaLizaTion
With a market specialization strategy a firm is attempting to lever its good standing with a profitable segment by offering them more products to fulfil other unmet needs. Grocery stores are increasingly offering their customers more products other than foods and consumer durables; clothing, furniture and even financial services are offered to customers. Wal-Mart is now one of the largest food retailers in the US; one analyst reported that ‘it sells 19 per cent of all grocery-store food in the United States, and it handles 16 per cent of all pharmacy-drug sales in the United States, and plans to increase that share to 25 per cent by 2008, which would make it the largest pharmacy in America’.
fuLL-MaRkeT coveRage
As the name suggests, full-market coverage is a strategy where the vendor serves every segment available. Vendors with a full product- line are capable of undertaking a full-market coverage strategy. The vendor can choose to pursue an undifferentiated approach or a differentiated approach. Employing an undifferentiated approach entails treating different segments as one market. In other words, the vendor tailors the marketing-mix to appeal to needs held in common between all segments. An undifferentiated approach is the polar opposite of a differentiated approach. This strategy entails designing a different product to each segment. Automobile manufacturers and increasingly, airline companies are employing a differentiated full-market coverage strategy.