Chapter 8

Market Coverage Strategies

International Marketing
Chapter-8 Market Coverage
Strategies
Objectives
What are the market coverage
strategies
What is concentrated marketing
strategy
What is the role of market
segmentation and differentiated
marketing
International Marketing
Chapter-8 Market Coverage
Strategies
Introduction
The market coverage strategy is
determined by consideration of external
and internal factors.
A company should decide whether it
should concentrate on one or a few
markets or should spread over all the
markets.
International Marketing
Chapter-8 Market Coverage
Strategies
Market Coverage Strategies
1. Concentrated marketing strategy
2. Undifferentiated marketing strategy
3. Differentiated marketing strategy

International Marketing
Chapter-8 Market Coverage
Strategies
Concentrated Marketing
Strategy
The concentrated marketing approach
is based on a decision to achieve a
maximum penetration in one or more
segments to the exclusion of the rest of
the market. Instead of spreading itself
thinly in many parts of the world, it
decides to concentrate its forces on a
few clearly defined areas.
International Marketing
Chapter-8 Market Coverage
Strategies
 By employing the strategy of market
segmentation, a company can design
products that really match the market
demands.
Concentrated marketing some times, go
well with polycentric orientation also.

International Marketing
Chapter-8 Market Coverage
Strategies
 Niche Marketing
Niche marketing is concentrating on a
market segment that is not satisfactorily
served or which is ignored by the major
players.
Such a strategy avoids a direct and
immediate competition with major firms.
A number of Indian companies have also
used niching as a foreign market entry
strategy. International Marketing
Chapter-8 Market Coverage
Strategies
Criteria For Selecting A Niche
1. The niche should be of sufficient size to
be profitable and it has growth potential.
2. There is no much competition and that it
is not of interest to major competitors.
3. The firm has the capabilities to serve the
segment so well that it will have an edge
over other firms.
4. The firm will be capable of defending its
domain.
International Marketing
Chapter-8 Market Coverage
Strategies
Undifferentiated Marketing
strategy
It is characterized by market
aggregation, treating a whole market as
a single unit whose parts are alike in all
major respects.
The entire market is sought to be
tapped with a single marketing mix.

International Marketing
Chapter-8 Market Coverage
Strategies
Market Segmentation And
Differentiated Marketing
Differentiated marketing, essentially
involves market segmentation
Market segmentation is the process of
dividing heterogeneous market for a
product into groups of customers so that
each such segment is amenable to a
separate marketing mix.
Differentiated marketing is based on the
appreciation of the heterogeneity of
market.
International Marketing
Chapter-8 Market Coverage
Strategies
Differentiation Can Be On
Following Parameters
1. Geographically
2. Demographically
3. Psychographically
4. Nature of the customers

International Marketing
Chapter-8 Market Coverage
Strategies
 Summary
The external and internal factors determine
market coverage strategy. The market
coverage strategy includes
1. Concentrated marketing strategy
2. Undifferentiated marketing strategy
3. Differentiated marketing strategy.
company has to decide whether the whole
market is to be covered with a single
marketing mix or different markets has to be
covered with a separate marketing mix.
International Marketing
Chapter-8 Market Coverage
Strategies