Concentrated Marketing is a strategy whereby a product is developed and marketed for a very well defined and specific segment of the consumer population. Concentrated marketing is particularly effective for small companies with limited resources because it enables the company to achieve a strong market position in the specific market segment it serves without mass production, mass distribution, or mass advertising.
Some features of Concentrated Marketing are:
A. A concentrated marketing approach aims at a narrow, specific consumer group through one specialized marketing plan catering to the needs of that segment.
B. Concentrated marketing is popular for small firms for these reasons:
1. Mass production, mass distribution, and mass advertising are not necessary.
2. It can succeed with limited resources and abilities by concentrating efforts.
C. If concentrated marketing is used, it is essential for a firm to do a better job than competitors in several areas.
1. The company needs to tailor its marketing program for its segment better than competitors.
2. Competitors’ strengths should be avoided and weaknesses exploited.
D. The majority fallacy, appealing to a large segment that is laden with competition, should be avoided.
E. A potentially profitable segment may be one ignored by other firms.
F. Per unit profits can be maximized through market segmentation. Total profits are not maximized,because only one segment is sought.
G. A distinct niche can be carved out for a particular brand.
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About Hitesh Bhasin
