Concentrated marketing is a strategy where a business focuses its marketing effort on a narrowly defined target audience. This is appropriate for products and services that are used by a specific clientele and the brand has designed their product with them in mind.

Concentrated marketing is based around the premise that reaching a broad market is not always an advantage. It’s expensive and has a lower rate of conversion. For a mass-market product, say potato chips, a marketing campaign that hits a broad target audience makes sense. However, for products that appeal to a narrower niche, it’s not a good use of resources. 

Let’s inspect what a concentrated marketing strategy is and when it can be used.

  1. Types Of Marketing Strategies

  2. Concentrated Marketing Strategy Example

  3. Disadvantages Of Concentrated Marketing

Types Of Marketing Strategies

Brands wishing to sell products and services need to first understand their market. Who will use the product or service? Sometimes, it may have mass appeal, for instance, with chocolate bars. Sometimes a product or service is meant for a few specific users. At other times, it’s suitable for only one niche. 

To design an effective marketing campaign, a business must follow these steps to select a strategy:

  • Identify its customers using focus strategy
  • Segment its customers based on geography, demography, their habits and lifestyle
  • Target these customers through a marketing strategy

To understand when a concentrated marketing strategy might be useful, it’s a good idea to delve into other popular targeting strategies.

Concentrated Marketing

Concentrated marketing goes out to a specific market, which is why it’s also sometimes called niche marketing. Concentrated marketing is based around this niche. For instance, buyers of high-end imported cheeses are a small group of people that are hard to reach through mass strategies. The business selling these will identify their consumers and then design a marketing campaign to reach them. They could arrange samples of their range at gourmet grocery stores, do a tasting menu at a fine-dining restaurant or wine and cheese nights with local wine clubs.

Differentiated Marketing

In a differentiated strategy, there are two or more groups that are the target of marketing efforts. The market is segmented, with different campaigns for each. For instance, high-end beauty products can be marketed to salons as well as directly to the consumer. Each of these segments can be reached through distinct efforts.

Undifferentiated Marketing

This is the strategy of choice when the message for the product needs to reach a wide market. A brand campaign for carbonated beverages such as Pepsi and Coke is an example of this.

Each of these has its time and place. Let’s dig a little deeper into examples of concentrated marketing.

Concentrated Marketing Strategy Example

When might a business look to a concentrated marketing strategy? Here are three concentrated marketing strategy example to help break it down:

Luxury Real Estate

You’ll see concentrated marketing examples in this space. There aren’t many buyers who can afford ultra-premium housing, so there’s no point spending money on a wide campaign. Instead, reaching out to potential buyers through golf clubs, C-suite networking events and banks has more impact.

Learning Support

There are many products that parents of children with special needs might require that aren’t widely used. A mass marketing approach would not be beneficial in such a case. Instead, analyzing the niche market of parents with a concentrated targeting strategy would be more effective. They might market these through maternity hospitals, parenting websites and influencer campaigns.

Specialized Software

There’s specialized software for many industries that don’t have any use to a wider population. For instance, there are a few specialized software for self-publishers of books. They often promote these tools through podcasts, YouTube channels that attract writers and content marketing on blogs. There are many concentrated marketing examples in this category, and not just with software, but with other professional tools as well.

Concentrated marketing examples show just how useful it can be across industries.

Disadvantages Of Concentrated Marketing

This approach helps small organizations or teams keep their costs down. But there are some disadvantages of a concentrated marketing approach as well:

  1. Small Niches Are Hard To Find

    If the group you’re targeting is too small, it may be hard to speak to them directly with a concentrated targeting strategy.

  2. Small Markets May Not Be Profitable

    If a niche is too small, it may also not have enough consumers to support profits. You’ll need strong sales skills to make the most of such conditions.

  3. Wrong Targeting

    With a focused approach, accuracy is key. If you think one group of people is your target, but that turns out to not be the case, you’ll not drive sales and your conversion will shrink. A concentrated targeting strategy must be based on sound research and analysis.

A concentrated marketing strategy is a widely used approach to keep costs down while increasing relevancy. It can be a powerful way to explore a new market. Harappa’s Global Perspective learning pathway will provide you with the cultural fluency to understand specific markets better. It’ll equip you to work with international teams and clients and provide the basis for greater empathy and understanding across cultures. Become a better global thinker today with Harappa!