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.
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.