The most loved brands in the world nurture intimate connections with their audiences.

They speak directly to their target groups in a way that makes them feel they’re speaking directly to the specific customer’s needs.

But on such a grand scale across such broad markets, how can they be so relevant?

The answer is by using a differentiated strategy.

In this article, you’ll learn how great brands leverage this strategy to grow brand equity, intimacy, and market share.

What Is Differentiated Marketing? (Nike Strategy Example)

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What Is Differentiated Marketing?

Differentiated marketing is a strategy brands use to appeal to multiple customer segments within their target market.

It provides brands with a means to be more relevant and expand their reach and market share by addressing specific needs while remaining consistent with their brand positioning and messaging.

They do this by tailoring their product offering and using different messages to specific market segments while staying “on-brand” and in line with the longer-term brand strategy.

Some people confuse differentiated marketing with concentrated marketing. But a concentrated marketing strategy is about tailoring the message to a specific customer base while the latter is about focusing your marketing efforts on a specific niche market.

There are many ways a brand can differentiate itself from its competitors, which is where strategy comes in.

There is no one size fits all approach and there are countless ways a brand can engage its audience and achieve its objectives.

Every industry and market is different, which is what brand strategists must define to then analyse the market and define the best approach for each circumstance.

Pros and Cons Of Differentiated Marketing

Differentiated marketing is a tool brands can use to get in front of various segments of their audience. And like most tools, there are advantages and disadvantages to consider.

ADVANTAGES

Be more relevant to specific segments

Be more specific to market needs

Flexibility to test different segments

Expanded reach and revenue

Increased market share

DISADVANTAGES

Increased research & development costs

Increased marketing and management costs

Inconsistent results 

Risk of customer response

Risk of diluting brand equity