In this process of marketing strategy the company make efforts to design a product for a specific set of consumers. Concentrated marketing works effectively for companies with limited resources. It enables them to define a small group of target audience and make the most effective and competitive product, which will cater the need of that small group of segment. It will target a smaller group of people because they have a similar wants.
Features of Concentrated marketing:
- This strategy helps small businesses to focus on a smaller group of segment and catering the needs of that segment by making specialized products for them only.
- Mostly the strategy is implemented in small firms
The marketing strategy will be on a target group of customers and not any traditional marketing strategy such as mass advertising and mass distribution will not be used to market the product.
The optimal use of resources would be there, as the activities which we are doing are concentrated on one target segment.
- Due to the narrow targeting there are very less chances to lose a customer. In turn they can build a loyal customer base by developing a product that the customer needs.
- The company need to be the market expert to get into the niche market:
As company will target the narrow audience so they have to be specialized in the core of the product.
As the customer will want the more extra features to be added in the product so the company has to be good at adding benefits to the product.
- There is no difficulty to find these kind of segments because these are ignored by most of the larger firm and you can take a competitive advantage of it and can make a targeted brand to satisfy the needs of the customers.
- There is very less opportunity to scale the business and acquire larger customer bas. It would be difficult to increase the size of the business.
- Per unit profit can be maximized by providing the additional benefits to the customers.
Example of concentrated marketing:
A company might market a product to target a specific age group of kids audience, or a set of fitness lovers who are living in a metropolitan city, or a specific girl teenagers. These all are the examples of the smaller targeted groups who can be targeted in the future for selling a product.