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What is Concentrated Marketing?

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  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 24 August 2016
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Concentrated marketing is a marketing approach that is aimed at connecting with and selling products to a specific consumer group. This strategy calls for taking steps to identify the target market that is highly likely to be attracted to the products, and developing a marketing plan that is unique to reaching that group of consumers. The process also normally includes planning the delivery of products in a manner that is likely to generate repeat business from those consumers. In many cases, concentrated marketing is an ideal approach for smaller businesses with limited resources, since it does not rely on the creation and use of mass marketing, production, or distribution to reach a wide range of potential consumers.

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The concept of concentrated marketing is the opposite of what is known as undifferentiated marketing strategies. With an undifferentiated approach, the idea is to capture as much of the market share as possible by creating a broad campaign that appeals to consumers of all ages, genders, economic backgrounds and geographical locations. By contrast, a concentrated marketing campaign seeks to identify the niche market or markets where there is likely to be a high demand for the products produced. In order to reach those niche markets, the producer will create a plan that involves only those forms of media that are regularly used to reach consumers in those niche markets, rather than going with a broader campaign approach. For example, a company that markets farming implements will make use of advertising in print media aimed at farmers, rather than creating ads that are found in magazines with a broader reader base.

While a concentrated marketing approach can help a business make the most of a small advertising budget, there are some potential drawbacks with this type of marketing. First, a concentrated effort requires a highly developed marketing plan, since it is targeted to a specific audience. This means a great deal of research into the wants, needs, and buying habits of that group of consumers, a task that can be somewhat costly on the front end. In addition, this type of focused or targeted marketing means that other consumer groups are not targeted and thus are not likely to be reached. In the event that the company is unable to capture an appreciable share of the targeted group of consumers, there may not be the luxury of more time to cultivate a client base with a different consumer group.

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Crispety
Post 4

Sunshine31 - That makes sense. I know that college marketing is also targeted because they are a unique segment of the market.

When I was in college, I remember seeing tables set out with all kinds of marketing material for different companies.

Often a representative from the company would be available to promote the product or service.

For example, credit card companies understand the market potential that they have with college students and will often offer credit card applications to college students in order to get them to sign up for a credit card.

Sometimes they will offer a free item a t-shirt or a stuffed animal.

These companies understand the need that many college students have for money and realize that they will find a job upon graduation which will easily help them pay their bills.

Sometimes college marketing involves promotions in local bars adjacent to the school as well.

sunshine31
Post 3

Cupcake15 - I think that concentrated niche marketing makes sense because not everyone will be able to afford those fashions and even though the demographic of the typical Saks Fifth Avenue shopper has an income of $250,000 or more.

There is a significant difference between a customer that earns $250,000 a year and one that earns millions and advertising strategies to separate these groups makes sense.

Often these stores will color coat their credit cards in order to differentiate the level of spending the customer represents. This really helps the store when targeting their marketing promotions to different groups of customers.

cupcake15
Post 2

Anon111131 - I agree that the article was well written. I wanted to add that an example of concentrated niche marketing is when they invite the Saks’s cardholders to a high end designer fashion show at the store.

These events offer special discounts and are offered to the Saks card holders who tend to be the target market for the designer.

They will not place in ad in the newspaper because the event is exclusive and not for every Sak’s shopper.

They may even profile these marketing promotions to include customers that have spent $20,000 or more. This not only makes these exclusive customers feel special but it offers the best prospects for buying.

anon111131
Post 1

All your explanations are wonderful and take up the space on your website to keep it busy and full. They are in error-free English, and paint rosy pictures. They are great to read, but the explanations are not backed by concrete examples and explanations of how the actual advertising/marketing is/was done.

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