concentrated marketing

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Concentrated marketing is a type of marketing strategy where a firm chooses to focus its marketing efforts on one particular market segment.

Further discussion on concentrated marketing:

After a segmentation analysis is conducted and available market opportunities are revealed, the marketer enters the next phase of the marketing process, which involves the following two steps:

  1.  how many market segments should be entered
  2. which segments offer the most potential for the product or company

Concentrated marketing falls under the first step, “how many market segments should be entered.” There are three market coverage alternatives under this step, they include:

  1. undifferentiated marketing
  2. differentiated marketing
  3. concentrated marketing

Comparison of the three types of marketing segments:

undifferentiated marketing

Undifferentiated marketing ignores segment differences and offers its product(s) to the entire marketplace

differentiated marketing

Differentiated marketing entails marketing to different market segments, often crafting different marketing strategies for each segment.

concentrated marketing

Concentrated marketing focuses on one market segment and tries to capture a large share of that segment.

Examples of concentrated marketing:

As an example, in the 1950’s, Volkswagen focused its efforts on the economy car segment in the United States. Volkswagen has since grown as a company and now practices differentiated marketing.

Another example could include an advertising agency who targets a specific industry, such as the dental industry and dentists.  The agency would offer service to only this segment of the market.


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