concentrated marketing

concentrated marketing


targeting strategy

a MARKETING STRATEGY for a product which is based on the use of a MARKETING MIX format (pricing, advertising messages, sales promotion) aimed at one particular group of customers in the market. This approach thus focuses exclusively on one MARKET SEGMENT, rather than several market segments (DIFFERENTIATED MARKETING or TARGETING STRATEGY) or the whole market (UNDIFFERENTIATED MARKETING STRATEGY). Also known as a ‘focus’ or ‘niche’ strategy.

A concentrated marketing approach is particularly suited to a smaller firm with limited financial and marketing resources or a specialist producer, and could be used by a new entrant to the market as a means of establishing a toe-hold in the market before undertaking further expansion (see MARKET PENETRATION). By concentrating its resources narrowly, a firm may well be in a better position to boost its sales but, on the debit side, may fail to capitalize on the sales potential of other segments. Worse still, dependency on one segment leaves the firm unduly exposed to a fall in demand in that segment.

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