Concentrated Marketing

Posted in Marketing and Strategy Terms, Total Reads: 733

Definition: Concentrated Marketing

Concentrated marketing is a marketing approach in which most of the marketing efforts are focused on a specific consumer segment.


• L’Oreal targets affluent working women professional

• Rolex watches targets the luxury segment of the consumer market

Segmentation analysis is the first step in any marketing planning to identify the market opportunities. The next phase of the planning is Market segment entry strategy based on the potential of the particular segment. There are 3 approaches to this

1. Undifferentiated Marketing

2. Differentiated Marketing

3. Concentrated Marketing

In all these strategies, identifying the target market which is highly likely to be attracted to our product is very crucial. In concentrated Marketing instead of focusing on the entire segment, the most profitable and sustainable segment is chosen and marketing plans are designed to cater to this particular group. This is an ideal approach for smaller firms with constrained resources


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. To reach to this niche market, the firm can use only those form of media which are regularly used by this consumers rather than going for a broader campaign.

For example, a company that markets luxury car product will not advertise in Newspaper. It will place its advertisement in business magazines or other magazines which are used by the affluent and rich people.


• 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



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