Concentrated Marketing
Concentrated marketing, also known as niche marketing, focuses on targeting a specific segment of the market with specialized products or services. This strategy involves tailoring marketing efforts to meet the unique needs and preferences of a particular group of consumers. By concentrating resources on a specific market segment, companies can often achieve higher levels of customer satisfaction and loyalty.
5 Key excerpts on "Concentrated Marketing"
eBook - ePub- Paul Reynolds, Geoff Lancaste(Authors)
- 2013(Publication Date)
- Routledge(Publisher)
...This is also a differentiated marketing strategy. Table 5.5 shows a strategy of specialist supply where the company serves customer groups 2 and 3 with wants 1 and 3 respectively. An example is a spinner of carpet yarns who supplies carpet manufacturers, but who also manufactures and sells needle punch carpets to the motor trade. This is known as a concentrated market strategy. A number of factors affect the choice of targeting strategy. For example, smaller companies with fewer resources often have to specialise in certain segments of the market in order to be competitive, so they must pursue a concentrated strategy. Competition will also affect the choice of strategy. In the final analysis, choosing a targeting strategy is a matter of striking the optimum balance between the costs and benefits of each approach in the particular situation. Table 5.5 Selective specialisation Customer wants Customer groups Group 1 Group 2 Group 3 Want 1 X Want 2 Want 3 X Specifically, the advantages of target marketing are: 1 Marketing opportunities and ‘gaps’ in a market may be more accurately identified and appraised 2 Product and market appeals (through the marketing mix) can be more finely tuned to the needs of the potential customer 3 Marketing effort can be focused on the market segment(s) which offer the greatest potential for the company to achieve its objectives. Vignette 5.1 Segmentation: UK banks reluctantly target ‘lost’ financially excluded segment Literally millions of people in the UK have a poor financial history. County Court Judgements (CCJs), credit defaults (usually the result of non-payment of credit card debts) and late payment histories (again on credit cards and other hire purchase agreements, including rental agreements) affect many households. People with such histories are usually recorded on the files of credit reference companies. The biggest credit reference companies in the UK are Experian and Equifax...
eBook - ePubMarketing that Moves People
How real estate agents can build a brand, find fans, land leads, and communicate convincingly
- Shelley Zavitz(Author)
- 2022(Publication Date)
- Harriman House(Publisher)
...If the phrase ‘one size fits all’ was actually true, the phone lines of Amazon wouldn’t be flooded with complaints, Nike wouldn’t have 1,500 design departments dedicated to each sport, and I wouldn’t own 14 awkwardly-fitting baseball caps. You would be hard-pressed to find any high-functioning company that offers a service that appeals to every single person in the world perfectly. It’s impossible. What’s true of the human race is that the heaven of one is hell to another. Micro marketing means to concentrate your resources and marketing on reaching a select group of people. You’ve probably heard the term ‘niche marketing’. It’s one of the most important things to understand and implement in your marketing strategy so let’s spend some time on it. Niche marketing means to choose a group of like-minded, like-habited, sometimes geographically-linked people, and deliver a service or product based on their wants and needs. (An overly simplified explanation, perhaps, but that is generally what it is.) It’s the secret to constructing a sustainable campaign. Committing to one segment or group of people will help you thrive in future years. The reasons you want to start niche marketing are to: Create deeper engagements. Deeper means more committed and ready to buy or sell. Receive real feedback that enables you to refine your systems. Receive real information that offers insight on how to prepare for the future. Get results based on your budget. Create high-value clients. Create a personalized experience. Receive praise from clients who feel seen by you and thereby refer you. This is why defining the target market was so important first. Now, not only are you going to know the wants and needs of your market, you are going to become the pro of all things related to it. The goal is to have your brand become synonymous with the solution of their wants and needs. Spend some time defining your macro and micro markets...
eBook - ePubConsumer Profiles (RLE Consumer Behaviour)
An introduction to psychographics
- Barrie Gunter, Adrian Furnham(Authors)
- 2014(Publication Date)
- Routledge(Publisher)
...Having said that, there are still instances where direction of marketing effort to the total market for a category of products is justified. For instance, the market may be so small that directing marketing effort to the total market may be the only profitable strategy. In another situation, heavy users may constitute such a considerable portion of the market that the obvious strategy is to concentrate on developing products for, and communicating with, these heavy users. Under different circumstances again, an organisation's product (its brand) may so dominate a market that its appeal is total: it elicits a positive response from all segments of the market and therefore there is little point in concentrating merely on one or two segments. These considerations aside, however, the whole marketing effort becomes more manageable when some key group is identified as the target market. Products can be developed more efficiently through close attention to a more homogeneous group of potential buyers. When the group has been identified, marketing communications are often easier and more economical. Costly wastage of advertising expenditure (e.g., due to overlapping groups with neither the means nor the intention to buy) can be avoided. Today's companies are finding it increasingly hard to practise mass marketing and in any case, mass markets are undergoing 'demystification'. Consumers will soon be able to enjoy a multiplicity of television channels supplied by terrestrial, satellite and cable distribution systems in addition to the numerous radio stations, magazines and newspapers to which they are exposed. In future, advertisers will be forced to design products that fit with the multiplicity of channels, with multiple retail outlets and with a multiplicity of discrete consumer target audiences. The necessity of subtle, sensitive target marketing has now received almost total recognition. Target Marketing Companies are increasingly embracing target marketing...
eBook - ePubStrategic Marketing
An Introduction
- Tony Proctor(Author)
- 2014(Publication Date)
- Routledge(Publisher)
...A focus strategy avoids strategy dilution or distraction and is more likely to lead to competitive advantage. When the internal investment programmes and culture have all been directed towards a single end and there is buy-in on the part of everyone in the organization, the result will be assets, skills and functional strategies that match market needs. In most cases the product line or market is expanded, compromises are made in advertising, distribution, manufacturing and so on. Moreover, the strategic competitive advantage and associated entry barriers will be diluted. A business that lacks the resources to compete in a broad product market must focus in order to generate the impact that is needed to compete effectively. A focus strategy provides the potential to bypass competitor assets and skills. It can also provide a positioning device. Although pay-off of a small niche may be less than that of a growing market, the competition may often also be less intense. Large growth markets attract many competitors and stimulate over-capacity whereas this is unlikely to occur in niche markets to the same extent. Nevertheless, a focus strategy does limit the potentials of a business. Profitable sales may well be missed and the business may have to compete with firms that enjoy scale economies. Focusing the product line Focusing on part of a product line can enhance the line's technical superiority. In most businesses, the key people have expertise or interest in a few products. As the product line broadens, however, the products tend to be ‘me too’ products which do not provide value and detract from the base business. This may spur on the need to remain focused and resist product expansion. Targeting a segment The same argument applies as in focusing the product line mentioned above. Low-share competitors In many industries there is a dominant firm with substantial scale advantages. A key to competing against such firms is usually to use some variant of focus strategy...
eBook - ePubStrategic Marketing
An Introduction
- Tony Proctor(Author)
- 2002(Publication Date)
- Routledge(Publisher)
...The options include: Mass marketing strategy: offering one product/service concept to most of the market, across many market segments. Although scale economies can be achieved, there is a risk that few customers will be adequately satisfied. The underlying assumption of this approach, referred to as undifferentiated marketing, is that all customers in the market have similar needs and wants. It is argued that they can therefore be satisfied with a single marketing mix— that is a standard product or service, similar price levels, one method of distribution and a promotional mix which is directed at everyone. There are probably only two conditions under which a mass marketing approach is the most appropriate. The first reflects the demand side of the equation and is the position where there is little variation in the needs of consumers for a given product or service.This is a situation which is becoming increasingly rare since in both consumer and industrial markets different individuals and organizations have widely varying characteristics, wants, needs and interests. The second condition reflects the supply side of the equation and refers to the ability of the enterprise to develop and sustain a single marketing mix that satisfies all.Where markets are large this capability requires the availability of substantial resources. More prevalent strategies are those which take account of the wide variation in customer wants, needs, characteristics and interests. For example: Single segment strategy: concentrating on a single segment with a product/ service concept. This is relatively cheap in resources, but there is a risk of putting all the eggs in one basket—if the segment fails the company’s financial strength will decline rapidly. Rolex, for example, targets relatively high-income consumers with its prestigious wristwatches...
