Concentrated Marketing: Definition, How it Works, Benefits, and Implementation Strategies
Posted: Tue Dec 03, 2024 4:01 am
Concentrated marketing is one of the market targeting strategies that can be an effort to increase business. Implementing the right targeting strategy is indeed a challenge that must be faced by brands or companies. However, with the right targeting selection , your business can grow better.
This discussion will review more deeply about concentrated marketing and how to implement it. Read more below, yes!
Understanding Concentrated Marketing
Concentrated marketing is a marketing strategy in which a company focuses its marketing and sales efforts on a narrow or specific market segment. The goal is to achieve dominance in the chosen market segment through a deep understanding of the needs, preferences, and behavior of consumers in that segment.
This marketing strategy, also known as niche marketing, involves targeting a specific person or group of people by identifying their demographic information, such as age, gender, income level, and location.
For example, a company that sells fishing equipment might use a concentrated marketing strategy to target the fishing community with specific products designed to meet their needs and wants.
This strategy is typically used by small or new companies, or by companies operating in highly competitive markets, where focusing on a smaller market segment allows them to compete more effectively.
Concentrated Marketing Example
This type of marketing can be done in a variety of ways, but the most common method is to create a product line or brand. This marketing targeting strategy can be used for both digital and physical products.
Concentrated marketing is often done by targeting one demographic phone number library or geographic area. You can also do it by targeting specific social media platforms, such as Facebook or Twitter.
Some common examples of concentrated marketing include advertising on social media, advertising on radio stations in a specific area, or even distributing flyers in the local area.
How Concentrated Marketing Works
To better understand the concept of concentrated marketing, here is an explanation of how it works in general.
1. Market Segmentation
The initial stage of concentrated marketing is to segment the market to find the appropriate market segment to be targeted. Market segmentation can be done by considering demographic, psychographic, and behavioral characteristics.
2. Targeting
The next step is targeting, which is targeting that specific group to become the target audience. Once the relevant market group is identified, you can adjust your marketing strategy to suit the needs and wants of that market group.
3. Differentiation
After determining the market, you can create a uniqueness that is typical of the product offered. You need to develop the product so that it can answer the needs or desires of the niche market . This strategy is different from differentiated marketing which targets a wider customer base to increase brand awareness .
4. Positioning
Concentrated marketing only focuses on one specific market segmentation, so you need to position the product well in that segment. Determine how you want to be viewed by the audience, or what kind of brand you want to be seen as. Determining the right positioning will greatly influence your success in entering a niche market.
Benefits of Concentrated Marketing
The implementation of concentrated marketing strategy provides several benefits for business development. Here are the benefits of concentrated marketing for your business development:
Resource Efficiency: Focusing on a limited market segment allows for more efficient use of resources.
More Expert in Your Field: Businesses can become experts in a specific market segment.
Easier to Create Promotional Messages: Promotional messages can be tailored to the characteristics of market segments.
Marketing Results Are Easier to Track: Because the target market is more focused, marketing results can be monitored more easily.
Increased Customer Satisfaction: Products that match the needs of market segments will increase customer satisfaction.
Easy to Attract Relevant Customers: This strategy makes it easy to attract customers who are relevant to the product or service being offered.
More Targeted Marketing: Companies can focus on specific demographic or geographic areas, rather than trying to reach everyone with their message.
Disadvantages of Concentrated Marketing
In addition to the benefits, concentrated marketing also has some disadvantages. Some of the disadvantages of concentrated marketing:
Creates high dependence on customer preferences.
Companies may only focus on a small segment.
There is a risk of failure to reach a particular market, especially if the market segment is too narrow.
Concentrated Marketing Strategy
Understanding concentrated marketing is incomplete without knowing how to apply it in the business world. Especially in the information and digital era like today, where the role of digital marketing can help the targeting strategy.
This discussion will review more deeply about concentrated marketing and how to implement it. Read more below, yes!
Understanding Concentrated Marketing
Concentrated marketing is a marketing strategy in which a company focuses its marketing and sales efforts on a narrow or specific market segment. The goal is to achieve dominance in the chosen market segment through a deep understanding of the needs, preferences, and behavior of consumers in that segment.
This marketing strategy, also known as niche marketing, involves targeting a specific person or group of people by identifying their demographic information, such as age, gender, income level, and location.
For example, a company that sells fishing equipment might use a concentrated marketing strategy to target the fishing community with specific products designed to meet their needs and wants.
This strategy is typically used by small or new companies, or by companies operating in highly competitive markets, where focusing on a smaller market segment allows them to compete more effectively.
Concentrated Marketing Example
This type of marketing can be done in a variety of ways, but the most common method is to create a product line or brand. This marketing targeting strategy can be used for both digital and physical products.
Concentrated marketing is often done by targeting one demographic phone number library or geographic area. You can also do it by targeting specific social media platforms, such as Facebook or Twitter.
Some common examples of concentrated marketing include advertising on social media, advertising on radio stations in a specific area, or even distributing flyers in the local area.
How Concentrated Marketing Works
To better understand the concept of concentrated marketing, here is an explanation of how it works in general.
1. Market Segmentation
The initial stage of concentrated marketing is to segment the market to find the appropriate market segment to be targeted. Market segmentation can be done by considering demographic, psychographic, and behavioral characteristics.
2. Targeting
The next step is targeting, which is targeting that specific group to become the target audience. Once the relevant market group is identified, you can adjust your marketing strategy to suit the needs and wants of that market group.
3. Differentiation
After determining the market, you can create a uniqueness that is typical of the product offered. You need to develop the product so that it can answer the needs or desires of the niche market . This strategy is different from differentiated marketing which targets a wider customer base to increase brand awareness .
4. Positioning
Concentrated marketing only focuses on one specific market segmentation, so you need to position the product well in that segment. Determine how you want to be viewed by the audience, or what kind of brand you want to be seen as. Determining the right positioning will greatly influence your success in entering a niche market.
Benefits of Concentrated Marketing
The implementation of concentrated marketing strategy provides several benefits for business development. Here are the benefits of concentrated marketing for your business development:
Resource Efficiency: Focusing on a limited market segment allows for more efficient use of resources.
More Expert in Your Field: Businesses can become experts in a specific market segment.
Easier to Create Promotional Messages: Promotional messages can be tailored to the characteristics of market segments.
Marketing Results Are Easier to Track: Because the target market is more focused, marketing results can be monitored more easily.
Increased Customer Satisfaction: Products that match the needs of market segments will increase customer satisfaction.
Easy to Attract Relevant Customers: This strategy makes it easy to attract customers who are relevant to the product or service being offered.
More Targeted Marketing: Companies can focus on specific demographic or geographic areas, rather than trying to reach everyone with their message.
Disadvantages of Concentrated Marketing
In addition to the benefits, concentrated marketing also has some disadvantages. Some of the disadvantages of concentrated marketing:
Creates high dependence on customer preferences.
Companies may only focus on a small segment.
There is a risk of failure to reach a particular market, especially if the market segment is too narrow.
Concentrated Marketing Strategy
Understanding concentrated marketing is incomplete without knowing how to apply it in the business world. Especially in the information and digital era like today, where the role of digital marketing can help the targeting strategy.