Posted in Marketing and Strategy Terms, Total Reads: 4186
Definition: Single Market Strategy
Single market strategy, also known as concentrated strategy, involves concentrating all your efforts in a single segment with a single marketing mix. Such a strategy is usually chosen by small companies which have limited resources in order to avoid confrontation with larger companies. They find a niche in the market and devote their energies to serving that market.
Since all efforts are concentrated in a single segment, the costs are minimal and the prices can be kept high, hence resulting large profits especially when competition is meagre.
Example: Shubham Housing Development Finance Company is a NHB that provides housing and house improvement loans to that section of the population who are not eligible for loans or their credit worthiness does not meet the requirements of other commercial banks. The segment is kind of a niche such that it is untouched by many large players and hence, the firm can focus their energies there, avoiding competition and at the same time keeping their premiums high.