Concentrated marketing strategy – defined
What are the advantages of concentrated marketing?
There are several advantages of concentrated marketing, including:
What is concentrated marketing?
With concentrated marketing, a business focuses the majority of or all of its marketing efforts on a single target market group. Companies that focus their marketing efforts highlight how their products can meet the specific needs of their target market. Businesses may use variables like gender, race, shopping habits, personality traits, or interests to define their target or niche audience segment. Examples of target or niche markets include:
Concentrated marketing vs. differentiated marketing
A marketing strategy that targets two or more market segments is known as differentiated marketing. Businesses that employ differentiated marketing provide a single good or service while aiming their advertising at various consumer types. Concentrated marketing concentrates on creating advertisements and strategies for a single audience segment, which is the main distinction between it and differentiated marketing. Businesses using differentiated marketing, however, target multiple types of consumers.
For instance, a manufacturer of orange juice may use a concentrated marketing strategy to focus all of its advertising efforts on children. A different orange juice producer might target customers who are interested in nutrition in some of their advertisements, while others might target children.
Concentrated marketing vs. undifferentiated marketing
Undifferentiated marketing refers to a marketing strategy in which marketing teams use the same advertising messages to target each of their audience segments. Here are some differences between concentrated marketing and undifferentiated marketing:
Undifferentiated marketing techniques seek to connect with as many prospective clients as possible. When using an undifferentiated marketing strategy, a marketing team may have several different target consumer types, but their advertisements will still aim to appeal to all of those consumers. However, businesses that employ concentrated marketing strategies concentrate on marketing to a single group of consumers.
Businesses that use undifferentiated marketing frequently employ more marketing channels, like broadcast media and digital advertisements Contrarily, concentrated marketing usually focuses on one or two media types thought to be most suitable for reaching a company’s target market. For instance, if a business is aware that its target customer uses social media the most often, it may choose to focus most or all of its marketing campaign posts, conversations, and advertisements on social media.
Generally speaking, undifferentiated marketing strategies are more expensive than concentrated ones. Because they target a larger audience and use more types of marketing channels, undifferentiated marketing strategies are frequently more expensive. By concentrating their marketing efforts on a narrower segment of the market and using fewer marketing channels, companies can typically reduce these expenses.
Examples of concentrated marketing
Concentrated marketing can be a successful strategy for many companies. Concentrated marketing is frequently worthwhile to try if a business has a unique product or service tailored for a specific group of customers. Here are some fictitious business examples of concentrated marketing at work:
Watch manufacturer example
Successful watchmaker Spacemode specializes in producing opulent timepieces. Actors, athletes, and other well-known people wearing Spacemode watches are featured in advertisements. Advertisements show these individuals on exotic islands and in opulent residences, giving the impression that Spacemode watches are a status symbol. Spacemode intends to specifically target customers who are interested in luxury goods or lifestyles by concentrating on these themes.
Yoga studio example
A growing yoga studio, DreamerYoga is committed to serving the needs of urban professionals. Due to budget constraints, DreamerYoga doesn’t advertise on television or radio, and their surveys indicate that urban professionals don’t frequently watch television or listen to the radio. Instead, DreamerYoga posts advertisements in congested areas on billboards, trains, buses, and subways. DreamerYoga believes that because so many urban professionals commute by mass transit or work in areas with these noticeable billboards, their advertisements will effectively reach their target market.
A small coffee chain called Cafe Chantigra wants to alter its marketing approach. The business discovers from an analysis of sales that young professionals are its most lucrative demographic. Cafe Chantigra creates an advertising strategy that emphasizes its reasonably priced and sustainably sourced coffee in an effort to attract young professionals with its low costs and green business practices.
What is concentrated marketing example?
One particular market segment or audience is the focus of a concentrated marketing strategy. For instance, a business might target teenage girls with its product, or a retailer might target locals in a certain town with his advertising.
What is a concentrated approach?
A strategy known as “concentrated marketing” entails a company focusing all of its resources and efforts on creating and promoting a product for a single segment of the target market. This approach is particularly successful for small businesses because it aids in securing a strong position in one marketing segment.
What business that uses concentrated marketing?
There are various types of concentrated marketing, such as specialized home furnishings suppliers and elegant housewares stores. Ford and Rolls Royce are two additional companies that have focused their marketing efforts on a specific market segment in order to sell their luxury goods.
What is concentrated marketing based around?
Reaching a large audience is not always advantageous, according to the theory behind focused marketing. It’s expensive and has a lower rate of conversion. It makes sense to use a marketing campaign that targets a large target audience for a mass-market product like potato chips.