Concentrated marketing

Concentrated Marketing is a strategy in market segmentation when a small part of the market is chosen and a specific offer is created for that audience alone. This type of marketing is especially fitting for small and medium sized enterprises, which do not possess enough resources to grasp a wider portion of the market. Concentrated Marketing allows them to utilize those resources effectively and target them to the dedicated segment of the market. If the strategy is carried out successfully, an organization can become a sole leader in that niche.

Characteristics of Concentrated Marketing

• Concentrated Marketing requires an enterprise to settle on one consumer segment and target all marketing efforts to that audience. Efforts are well organised into a plan that satisfies preferences and need of the respective customers.
• The strategy of Concentrated Marketing is predominantly used in smaller sized companies. It does not require large volumes of production or promotion. Therefore, SME's usually have enough resources to adopt this approach.
• In order to succeed with Concentrated Marketing, organizations have to invest into researching the current market they are entering, as well as competing firms that already exist and the ones that could emerge. Strong and weak sides should be identified and taken into consideration when creating the offer and the marketing plan. The product/ offer needs to be far more superior to the opponent, since the targeted group of customers is smaller and homogenic.
• The first step of Concentrated Marketing is to identify that small part of market. It is usually relatively easy, since those little segments are untouched by giants in the industry, as big companies look for a large audience to maximize sales.
• Concentrated Marketing also does not involve expansion, which is inherent to many other strategies. Consequently. all financial resources can be targeted towards upgrading the product and maximizing its value for the customers.

Examples of Concentrated Marketing

There are many examples of companies employing the Concentrated Marketing strategy, some of the most prominent and well-known ones are presented below.

1. Rolls Royce is a company that produces luxury cars, which is famous for its exclusivity and extremely high price range. The Rolls Royce is perceived globally as a brand of highest possible value and status. In order to gain such reputation and acquire a respective position in the industry, the company used Concentrated Marketing strategy. Their target audience is very selective and includes a very narrow portion of society. Rolls Royce focuses all their advertising efforts towards that audience, with the marketing techniques catered to their preferences. Those being five stars hotels, exclusive events, high-profile parties, etc.