What is Concentrated Marketing – Strategy for Concentrated Markets?

After product development, the next steps for marketers are brand management, conveying the message, and promoting the brand. There are different marketing strategies that can help the marketing team create effective campaigns and reach target customers. Good examples of these approaches are differentiated, undifferentiated, and concentrated marketing strategies.

Concentrated Marketing Strategy

Concentrated marketing, also known as niche marketing, is a marketing strategy in which a company focuses on a specific and well-defined market segment with a tailored marketing mix that meets that group of customers’ unique needs and preferences.

In contrast to mass marketing, which targets the entire market with one product or service, concentrated marketing allows companies to develop a deep understanding of their target market and create products and services that are specifically designed to meet their needs. This can lead to a number of advantages, including:

  • Increased sales: By focusing on a specific market segment, companies can better understand the needs and wants of their customers and develop products and services that are more likely to appeal to them.
  • Increased customer loyalty: Customers who feel that a company understands their needs and is providing them with products and services that are specifically designed for them are more likely to be loyal to that company.
  • Higher profit margins: By focusing on a specific market segment, companies can charge higher prices for their products and services, as they are meeting the unique needs of their customers.
  • Reduced competition: By focusing on a specific market segment, companies can avoid competing against larger companies that are targeting the entire market.

Examples of concentrated marketing include:

  • A company that sells organic clothing to women
  • A company that provides accounting services to small businesses
  • A company that sells luxury cars to high-income individuals
  • A company that sells educational toys to parents of young children

To develop a successful concentrated marketing strategy, companies need to:

  1. Identify a specific market segment that they want to target.
  2. Understand the needs and wants of their target market.
  3. Develop a marketing mix that is tailored to the needs of their target market.
  4. Build relationships with their target market and create a loyal customer base.

Concentrated marketing can be a very effective strategy for companies of all sizes. However, it is important to note that it is not without risks. If a company chooses the wrong market segment to target, or if it does not properly understand the needs of its target market, it can fail to achieve its marketing goals.

Characteristics of Concentrated Marketing

This type of marketing requires it to customize its marketing strategy for a defined market segment better than its competitors. Due to this, companies have to conduct competitors’ analyses to find out the strengths and weaknesses of existing and potential competitors.

The company can face limited growth opportunities due to the decreasing segment size. Here, companies need attention and insight into the market segment to which they want to cater.

Those profitable market segments overlooked by other companies can be wisely targeted and selected through concentration. Such segments face a small number of competitors and can easily be converted into profitable business segments.

Due to its quasi-monopoly nature, concentrated marketing can develop a loyal customer base through satisfied customers and concentrated efforts. It can launch co-products or new products and ensure continued favor from loyal customers in the niche market.

Concentrating targeting has no need for mass production, mass distribution, or mass advertising; one can attract the target market by conveying a single and precise message. One can customize the product and message until they get the desired results.

Concentrated Marketing Examples

There are different forms of concentrated marketing, for example, specialized home furniture providers and well-designed housewares shops. Other examples of concentrated marketing strategies are Rolls Royce and Ford, which have targeted a well-defined segment for their luxury products. In this approach, a marketing mix is developed. For instance, in the watch market, Rolex watches concentrate on the luxury segment.

Advantages and Disadvantages of Concentrated Marketing


  • This type of marketing can be a great success for those companies who have limited resources. These companies cannot expand after a certain level and need a concentrated efforts for a selected niche.
  • This marketing approach is effective for those companies which are skilled and specialized in manufacturing products.
  • Those companies adopt concentration strategy can better identify customer needs and wants due to its one are fewer segments and one can better satisfy customers’ needs and wants.


  • Totally dependent on a single niche market segment
  • High developed and specialized market plan is required to implement
  • Concentrated marketing companies should be more flexible and respond to the changing consumer behavior in the target market.