How to Implement a Successful Concentrated Marketing Strategy

Categories: Marketing
Sam Thomas avatar
Sam Thomas Updated: June 12, 2021


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The largest businesses producing goods are those that have a horizontal demand for a range of clients. Thus, every step of their operation is carried out on a wider scale, from manufacturing and marketing to distribution.

Some firms, on the other hand, only produce a single product with a targeted customer base. Such businesses choose a concentrated marketing strategy. The company undertakes efforts to design a product for a particular range of customers in this marketing strategy. For businesses with limited resources, concentrated marketing might be an optimal option to consider. It allows us to identify a narrow target demographic and to deliver the most efficient and sustainable product that meets this small segment’s needs. It’s going to hit a smaller audience because they want it.

This article will go through some fundamental ideas of a concentrated marketing strategy and learn how to build and implement one to leverage your business’ marketing.

Table of Content:

What is a concentrated marketing strategy?

This suggests that a targeted marketing campaign will not be extended to various markets but will only persuade a limited subset of consumers to purchase the product from the businesses. The focus of marketing campaigns makes it easier for the organization to specifically target its message to the targeted audience and persuade the identified audience.

The primary aim of concentrated marketing is to guide all of your company’s vital logs to a specific and narrowly established customer base. All phases in the company have to work together to make sure you meet your target audience.

Many small and medium-sized enterprises prefer concentrated marketing since the brand as an industry expert has a better chance of being developed. There is a narrow, concentrated, and well-established target audience. Therefore, a concentrated marketing system is your best choice if you believe the product concept is capable of resolving, in the long run, a significant issue. To sum up, a concentrated marketing system works pretty well if your target is to take over a niche market.

Difference between Differentiated and Concentrated Marketing

Differentiated Marketing

By using differentiated marketing, businesses can use their campaigns to attract two or more parts of their target audiences or marketing segments. Brands aim to establish a broader customer base, raise brand awareness, convey individualized messages, and satisfy the needs of clients in a variety of well-defined consumer profiles.

Following the establishment of customized approaches for different target audiences, business messaging is more likely to respond to customers’ individual needs and can expect additional benefits, like greater customer loyalty, improved business-customer connections, and more.

This tactic has advantages and disadvantages, just like every marketing tactic. Differentiated marketing benefits include meeting consumer requirements, increasing consumer reach, and higher income. The approach also has its downsides of unpredictable brand identity and hefty cost.

Concentrated Marketing

Contrary to differentiated marketing, concentrated marketing is offered for one specified target segment as a common marketing campaign, a specific message, and a single product. This is the finest method for start-ups and small businesses since it allows them to identify the perfect lead or niche. Also, you as a business owner need not invest a lot of money on a concentrated marketing plan. In addition, you can create a reputation and become an expert in your field by focusing on the demands of a very limited target group.

Concentrated marketing might become the starting point to a broader target group for your future marketing strategies. The drawback of this strategy is that It performs with only one small section. So when it is time to grow, companies could find themselves in a trap, as companies normally adhere to a single value offering and brand voice.

Benefits and drawbacks of concentrated marketing


Less competition

Marketing strategy includes targeting non-main market sectors. The firm would focus on certain business segments, which are of less concern to large corporations. Large enterprises do not wish to join because their business size will result in a potential profit rate. This segment is thus loosely competitive and enables companies to set premium prices.

Effective resources allocation

Since they serve a few clients, the business will concentrate on using its target market for more resources, which increases the efficiency of marketing execution.

Cost-effectiveness is one of concentrated marketing’s most essential advantages. Some successful companies have a very large customer database. They launch several marketing initiatives and advertising focuses on various market sectors. When you own a small company and you have only one demographic niche market, all your efforts should be concentrated in one category.

Customer satisfaction and loyalty

Firms are more likely to achieve their desired customer satisfaction rate. Specific requirements and wishes of consumers are met. The market success gives a positive connection between customers and the brand.

When you reach marketing in this method, you demonstrate what clients want or need. If they visit, compared to a casual browser they have already decided to buy. It can also provide you a lead over competitors since it stands out with its distinctive qualities when a product or service is niche.

High ROI and profitability

Low competitive pressures allow firms to sell and earn high profits at high rates. They offer premium products, which require users to pay a higher price.

As concentrated marketing focuses on certain user groups, your product is more likely to be bought than anybody caught in a mass marketing net. In e-commerce store A, for example, ten individuals purchase products, and the transformation rates are 10 percent. There is another e-commerce shop B, with 10 people buying 1000 products and the conversion rate being 1%. The store, on the other hand, aims to increase and expend more on commercialization and advertising and the rate is even lower.

Better visibility

One of the most major benefits of concentrated marketing is that it enhances your visibility, which would allow more people to reach your product or service. Companies following niche marketing would offer a product or service that is unique. They often promote the features in media outlets, newspapers, and radio shows. Concentrated marketing helps you enhance your product/service visibility for the relevant customers, not the crowd.


Limited entry opportunities

Competitive marketing, of course, halves or even fewer your profitability and market share. But competition is excellent since its fresh ideas and features will drive you to better your product. If you apply specialized in the domain of competition and you don’t have very few competitors

The niche marketing problem is the very small niche market with a limited size. If you want rapid growth in a short time, then concentrated marketing might not be an optimal option since a small market means that the growth is slower and limited.

How to implement a successful concentrated marketing strategy

Now that you understand how companies of all industries establish development-driving strategies, it is time to build your own.

Step 1: Know your expertise and competition

Many people are irrational to identify the most profitable or highly expanding industry. For instance, your decade’s expertise in pharmaceutical marketing may not be good at starting up a pharmaceutical manufacturing or retail unit. Your expertise in marketing would be good if you supply manufacturers with medicines and sell them under a brand name. Investment and risks are higher if the effort is to target all medical specialties. Everything depends on an entrepreneur’s domain skill and understanding.

Many people have entered areas they are not aware of and it is only because they show high revenue growth and ROIs. Trends could change quickly, and the positive trend in the niche industry may have changed by the time the new company establishes itself. Employers need to identify their skills, their best jobs, their field of knowledge, accomplishments, and important life lessons. Experience is an important factor for a new company’s success.

Step 2: Identify your ideal group of customers

It does not mean you can be lazy when it comes to researching your target market simply because your product or service attracted only a limited number of individuals. It can make it even more difficult to find out who your ideal customer is if you are running a business with a limited product or niche appeal.

Segmentation is necessary for a specialized company to define a smaller target market. Without a better understanding of the more detailed qualities of your target markets, it is not sufficient to know the basics such as age range, income, family status. The narrower your market, the better you get to know your target customers.

For example, IT marketing companies, financial services, industry, and the car industry all seem to be too broad for B2B businesses, and therefore, cannot be classed as an ideal concentrated market. Car firms in China providing cheap electric automobiles might be fantastic strategies to determine market advantages in the chosen niche.

Step 3: Know your audience needs and unique selling points

In addition to learning all about your niche market, it is also essential to know how your product or service will satisfy a requirement that another business in your industry does not now meet. The majority of company success stories arise in a great sense to identify and resolve an issue. What is so remarkable about your business? What is your distinctive offer for sales? It is crucial that you first think about the customer and that this excellent commitment is the foundation of your concentrated marketing approach.

Different ways of determining consumer demands are market surveys, informal customer interviews, and secondary information. Research centers publish concentrated market strategies surveys, which could be a useful start point for identifying your target audience. The greatest way might sometimes be to talk to customers personally.

In India, for example, popular toothpaste today was in powder format at first, but identifying the need for more handy paste formats in sealed tubes has opened up a new market in which has outperformed conventional toothpaste.

Step 4: Choose a platform to promote your product

Concentrated marketing requires a whole new way of delivering what you offer. The strengths of every marketing channel in connection to your company are vital to you. Social media marketing, for example, has so far been more valuable for small companies working in narrow markets. However, Twitter, Facebook, and their interactions are not necessarily cost-effective in their targeting possibilities, since social media sites realize just how worthwhile those targeting options are.

The more practical solution, if so, could be paid search. Regardless of your circumstance, you need to examine any niche marketing strategy’s prospective return on investment to make certain that the target market reaches you effectively. For concentrated marketing initiatives, Pay-per-click (PPC) is excellent.

Time to add high-intended commercial keywords, optimize your mobile campaigns - while making sure more extensions are used - and send your message to the right audience. Many small firms argue that PPC is not working for them, or can not compete with large retailers, but that’s just not true in many circumstances. Lefty invests in PPC advertising for search phrases, in addition to the highly classified organic search terms, illustrated in this example.

Choose a platform to promote your product

This small business demonstrates that PPC may be of tremendous value for small companies, particularly niche market catering companies.

Step 5: Synthesize the attributes

When your business has identified the target audience, the attributes and the demand it satisfies for the client, the qualities of the new product or service must still be synthesized and characterized.

It should comply with the entrepreneur’s long-term vision: the product is genuinely needed, the strategy is well-designed, the product or service is unique on the market, and new products are available around the company, even while maintaining the key market strategy already defined for enterprise development.

Step 6: “Eavesdrop” your community, get feedback

Everybody needs solutions to issues. You can uncover ways to bridge the gaps by listening to people’s views on a particular product or service.

Social media is a simply fantastic tool to get immediate feedback on your product or service and provide customer satisfaction. It doesn’t just mean that you can make excuses if you’re operating small or marketing a niche product when it comes to client base management. Monitoring online comments takes effort, but it is still better than dealing with unfavorable reviews. Under proper implementation, word-of-mouth marketing would be just as powerful as other marketing tools. In concentrated marketing, you must listen attentively to what people are saying and act so quickly to correct your mistakes.

Step 7: Introduce your product/service idea

The final stage in the process of entry of concentrated market strategy is to introduce the product to your identified market. For instance, if the beauty product is marketed via pharmaceutical stores, sufficient quantities must be created, orders gathered from distributors, or the product must be introduced on the market in close collaboration with suppliers. This is one of concentrated marketing’s most important phases. When adequate work has been done, it is just a calculated risk to launch the product.

Real-case examples of successful concentrated marketing

Vermont Wooden Toys

Vermont Wooden Toys

Vermont Wooden Toys is the one company that recognizes its target market. The local business based in the countryside of Green Mountain State mainly takes orders from phone calls and only accepts one online payment method - PayPal - but that just doesn’t bother his loyal customers at all. Vermont Wooden Toys’ consumers demand craftsman, devotion, and love for the days they have spent. Each piece is produced by Ron Voake, who recognizes that his clients demand genuine, lovingly produced toys.

Voake’s business attracts various customers - probably mostly parents - but he also knows that the individual who buys time, expertise, and craft from him is valued. Therefore, they are ready to pay higher prices for higher quality products. Although wooden toys have long been popular, a flood of interest occurred in 2007 due to a toy recall due to the contamination of the plume and small magnets with a danger of choking.

Powell’s Books

Powell’s Books are recognized as the famous independent bookstore which becomes a new niche nowadays. Powell sells both new and old books in its flagship store where you need a map to browse through the aisles. Instead of fighting, the corporation has embraced the Internet and carried out a sophisticated social network engagement plan using hashtags. A host of online debates, book forums, and local events sponsored by authors and gifts are supported by Powell’s. The company’s expertise in its sector is acknowledged all around the country.


“Square” represents a little white square that can be connected with your phone or tablet for small companies, nonprofit organizations, and individuals to accept credit card transactions. They have entered a niche industry where credit card firms cannot afford processing costs but yet require that to serve their client base. Customers trust Square — especially since data violations to date have not hit it — and recognizes that recipes can be sent by email instead of printed. The organization is now offering hardware and other services to its clients. This business has thrived by empowering small enterprises

Flylow Gear

Flylow Gear has found its way to convince people to choose their small offerings over other products from big brand names like The North Face. The concentrated marketing strategy is focused on mountain skiers looking for no-nonsense, quality gear, rather than targeting all clients interested in winter gear. They feature their products in the correct areas to achieve their perfect buyers. Even their e-mails tell you that they are a mountainous crew of passionate skiers.

Whole Foods

WholeFoods aim at wealthy and conscious people who make health and wellness the most important thing. This is an example of a concentrated market since not everyone wants to spend their whole wage on supermarkets. Whole foods concentrated on organic foods before organic food could be found everywhere. Today, as shops arrange events to present new products, the brand keeps its reputation as a premium shopping experience. Shoppers have confidence in the brand for quality. Indeed, Amazon acquired Whole Foods, partly because of its loyalty and purchasing power, for the major reason.

Final Words

Since the niche market strategy product is tailor-made to the needs of the small group it deals with, it could have an impact on the market since individuals have a strong reason to buy. A powerful niche market position helps an enterprise to maintain its position and penetrate new niche markets.

Niche marketing can be a valuable strategy for companies focused on concentrated markets. Word-of-mouth and online techniques generate success and enable even small businesses to locate and engage with their target market.

You need a great combination of strategy, perseverance to become the brand inside your sector. It is now up to you to see whether you want to do this technique, knowing how valuable that can be. Go on and start your analysis, if you are already convinced. Extensive research is after all the basis for your concentrated marketing plan.

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