What is the difference between differentiated and undifferentiated marketing?

Answer: The undifferentiated marketing strategy focuses on an entire target market rather than a segment of it. This strategy employs a single marketing mix -- one product, one price, one placement and a single promotional effort -- to reach the maximum number of consumers in that target market.

A differentiated marketing strategy targets different market segments with specific marketing mixes designed especially to meet those segments' needs. Each mix includes a product, price, placement and promotional program customized specifically for a particular segment. For example, a company that manufactures vitamin supplements might identify gender-based market segments. It could produce one multivitamin formula for women and another for men. It could further differentiate by segmenting the gender groups by life stage and creating different marketing mixes around each one. Differentiated marketing is best suited for markets with readily identifiable segments, each with distinctive needs.

Why do companies position products?

Answer: Product positioning is the process marketers use to determine how to best communicate their products' attributes to their target customers based on customer needs, competitive pressures, available communication channels and carefully crafted key messages. Effective product positioning ensures that marketing messages resonate with target consumers and compel them to take action.

How can a firm use a positioning map to help them develop marketing strategy?

Answer: As the maps are based on the perception of the buyer they are sometimes called perceptual maps. Positioning maps show where existing products and services are positioned in the market so that the firm can decide where they would like to place (position) their product. Firms have two options they can either position their product so that it fills a gap in the market or if they would like to compete against their competitors they can position it where existing products have placed their product.

Explain each of these approaches/strategies to positioning:
product class.

Answer: This positioning strategy tends to take a leadership position in the overall market. Statements with the general message of "we are the best in our field" are common.