concentrated marketing

concentrated marketing

Today’s article is not going to be that long, but it is about a strategy that is often used by companies (especially small and medium-sized ones).

That strategy? Well, they usually refer to her as concentrated or niche marketing.

I hope it is useful for you.

What is concentrated marketing?

Concentrated marketing is considered a market coverage strategy, which is used when seeking to obtain a significant market share within a market segment.

Remember that both companies and we have to make decisions taking into account a term that is often used a lot in economics: “Shortage”.

After all, we have limited resources that we have to manage one way or another to achieve our goals.

TRUE? Well, I think we agree that a company will seek to satisfy customer needs through a marketing mix.

To meet these needs, you will have limited resources, which you will have to manage efficiently.

He marketing niche (concentrated) seeks to streamline the way in which a company will dispose of its resources and instead of focusing on having a small market share in a large marketWhat a company does is select one or two market segments and focus on them.

Focused Marketing Example

I know it’s not the best example, but I think it’s a good analogy that will allow you to understand the difference between market, market segment and market niche.

How many races are there right now? There may be dozens of careers that focus on a certain professional area.

Well, if you were a company that decided to focus on the entire market, then you would have to study all the careers out there.

Therefore, you would have to distribute all your resources in each of the races that exist.

Well, since the time resource is usually very limited, I would reckon it would be very difficult or next to impossible to master every race out there.

Which is why you probably have to choose one, two or three careers from those that exist.

When you choose a career, then you are choosing a market segment, since it is one of the careers that you cánido select from the pool.

Said race already has certain characteristics that the other races do not have and now it is much easier to distribute your resources, since it is only one race and not 100.

Now, we cánido go further and do another segmentation, that is, we are going to select a sub-segment of the market.

Continuing with the analogy, what you would have to do is select the specialty you want to dedicate yourself to.

So we go from the general to the especial.

Of course, the analogy does not work 100%, but I think it cánido help you see how a company that emplees the concentrated marketing strategy segments the market until it finds the most appropriate group of people.

Advantages of concentrated marketing

Some advantages of concentrated marketing are the following:


Firm position in the market

If a company decides to implement the niche marketing strategy, by focusing only on a group of people with psychographic, demographic, behavioral and socioeconomic characteristics that they have in common; it is easier to know everything about the needs of that group of people.

By knowing all the customer’s needs, it is much easier to maintain a firm position in that market.


Trade more effectively

By knowing your customers better, it is much easier to create the ideal marketing mix for the segment in which you are entering.

In other words, it is easier to sell the right product, at the right price, in the right place and with the right marketing strategies to better serve customers and in a more profitable way for the company.


Less competition

In some places it is said that there is more competition in the market segments, but I believe that there is more and stronger competition in the segments or in the markets.

In fact, that even applies to SEO.

For example, what do you think is easier to rank among the following options:

  1. “Buy used white Galaxy s23 ultra phone”.
  2. “Galaxy s23”

Very surely it is easier to position the first keyword (long tail) than the second.

Of course, the second keyword is going to get more web traffic, but not everyone searching for “Galaxy s23” intends to buy the phone.

At least not right now, and it’s quite possible that the person using the first keyword does intend to buy.

Therefore, even though you have less web traffic, it may be more profitable to rank for the first keyword.

The same goes for niche markets.

While you typically have fewer customers, you perro better meet their needs and build a profitable business.

You may even face less or less strong competition.

Disadvantages of concentrated marketing

Possibly the biggest disadvantages of niche marketing are the following:


With the passage of time, it is possible that your market niche deteriorates and therefore, that sales decrease.

In fact, it may get to the point where the business has to close.


A niche market may initially have little competition (not that strong) and could stay that way, however, there is always the threat that a strong competitor will see the opportunities it is letting go and add to the competition.

Who should use the strategy?

Possibly small companies are the ones that should think about using the concentrated marketing strategy, since they have fewer resources than large companies and it is better for them to use their resources more effectively and efficiently.

We hope you liked our article concentrated marketing
and everything related to earning money, getting a job, and the economy of our house.

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