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. It is the percentage of people who complete a desired action. Heat Detector. This article has been researched & authored by the Business Concepts Team. Concentrated marketing is a marketing approach that is aimed at connecting with and selling products to a specific consumer group. Johnson & Johnson’s strategy for infant market (for baby food, baby talcum powder etc.) The content on MBA Skool has been created for educational & academic purpose only. … For example, an airline usually offers tickets in first class, business class and economy class, which appeals to all segments of travelers. A company must steer away from large segments that have stiff competition and focus on finding a profitable segment that has been ignored by other companies. Often these stores will color coat their credit cards in order to differentiate the level of spending the customer represents. Mostly the strategy is implemented in small firms. • Generally adopted by smaller firms which lacks in resources, • Effective for firms which has specialized capabilities and skills in manufacturing products for a specific group of consumers, • Sensible approach for companies which are conscious on their marketing budget, • Too much dependency on a single client base will make the company fallible, • Requires highly developed marketing plan, • Company should be flexible by responding to the change in the consumer behaviour of this concentrated segment. Concentrated marketing is particularly effective for small companies with limited resources because it enables the company to achieve a strong market position in the specific market segment it serves without mass production, … 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. Per unit profit can be maximized by providing the additional benefits to the customers. The optimal use of resources would be there, as the activities which we are doing are concentrated on one target segment. Dropshipping Model. A concentrated market is one in which a firm pursues a large share of one or a few sub-markets (Kotler and Armstrong, 2009). The process also normally includes planning the delivery of products in a manner that is likely to generate repeat business from those consumers. Is the Coronavirus Crisis Increasing America's Drug Overdoses? Learn about a little known plugin that tells you if you're getting the best price on Amazon. Our referral system helps succeed your digital marketing efforts. Say the shop was newly opened and identified its target audience as … Our referral system helps succeed your digital marketing efforts. In contrast to the undifferentiated marketing approach where the strategy is to get the market share in all segments irrespective of the difference in age, gender and other demographic differences , in concentrated marketing focus is on going after a large market share in one or two target groups. Concentrated marketing can be defined as: Concentrating the firm’s market offering solely on the needs of one defined target market. Such marketing has been followed by Ford, Rolls Royce, Ambassador Cars, HMT, Quartz and Rolex Watches and glass manufacturing units. Money will be deposit to your Paypal Email Address. They will not place in ad in the newspaper because the event is exclusive and not for every Sak’s shopper. 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. Concentrated Marketing is a strategy whereby a product is developed and marketed for a very well defined and specific segment of the consumer population. Concentrated marketing can curve a unique niche for a product, but it cannot maximize profits as it targets one segment. Gillette Marketing Strategy . First, a concentrated effort requires a highly developed marketing plan, since it is targeted to a specific audience. Save my name, email, and website in this browser for the next time I comment.
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