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Home » Marketing management articles » Concentrated Marketing

Concentrated Marketing

August 25, 2018 By Hitesh Bhasin Tagged With: Marketing management articles

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:

Concentrated marketing

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. You can create a niche advertising strategy so that you reach your target group and the strategy gives result.
2. It can succeed with limited resources and abilities by concentrating efforts – because a small firm has lesser resources, it cannot expand a lot. Hence this type of marketing actually works for them.

Concentrated marketing

C. If this type of 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 – Such a profitable segment can be targeted with concentration and it can be conquered in such a manner that this segment does not go to any large competitor.

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 – This is the most critical point as a niche market will any time give a good ROI if it has marketed to properly.

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About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this hectic business world.

Comments

  1. pradeep says

    can anyone explain me the difference B/W Niche marketing & Concentrated marketing,?

    Reply
    • Sweetie says

      they are the same thing.

      Reply
  2. Ahmed says

    Thank you my Dear for help

    Reply
  3. Anu Jose says

    Thnks 4 d valued information…

    Reply
  4. jessielyn bazar villarino says

    hi what is the importance of each market coverage

    Reply
  5. Anil Weerasinghe says

    Is it better to go for mass media advertising to the product has a niche market.

    Reply
    • Hitesh Bhasin says

      Yes. In fact, a niche product sells better when mass media is used. But the important point here is to use a highly targeted strategy and maintain the positioning for a long period of time for the niche product strategy to be successful.

      Reply

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