What is Concentrated Marketing?
In this marketing, the business focuses on niche markets (narrow market segments) rather than the broader market. They only market the product to a group of customers with unique needs/services. In this strategy, it is possible to dominate the segment.
Features of Concentrated Marketing:
• A concentrated marketing strategy targets a small, specific consumer group with a single, specialised marketing campaign tailored to their demands.
• Concentrated marketing focuses on small firms because:
The products need not be produced or distributed or advertised in mass. The advertising strategy can be for a niche market, so it will be easy to target for a group and achieve the strategy.
It can flourish with limited resources and abilities by concentrating efforts – small businesses cannot expand rapidly due to its limited resources. As a result, this form of marketing is effective for them.
• The majority fallacy, which appeals to a huge, competitive sector, should be avoided.
• Other companies may be overlooking a potentially profitable market area.
• Through market segmentation, per unit profits can be maximized.
• A distinct niche may be built out for a specific brand – This is the most important point since a niche market will always provide a solid ROI if it is effectively marketed to.
Advantages of Concentrated Marketing:
1.The ability to evaluate and comprehend the demands and desires of a certain audience segment.
2.A corporation can become an expert in addressing the needs of a specific consumer segment.
3.Cost-effectiveness owing to lack of mass production and advertising.
4.More loyal clients if their demands are addressed.
Disadvantages of Concentrated Marketing:
1.Because of the great reliance on customer preferences, a change could reduce the effectiveness of your marketing initiatives.
2.There is a risk of ignoring additional lucrative markets
3.A brand may fail if its demand for its products declines.
Check and find out if your business can benefit out of this marketing strategy.