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What is Concentrated Marketing?

Also known as niche marketing, concentrated marketing is a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. 

Concentrated Marketing vs. Other Target Marketing Strategies

Concentrated marketing focuses on a large share of a small, well-defined market, unlike other target market strategies that focus on smaller shares of a broader market.

The marketing strategy allows smaller firms to focus their limited resources on serving niches unimportant or overlooked by larger companies. Many companies, specifically online E-Commerce sites, focus on niche markets to get a foothold over larger competitors before they branch out.

The upside to niche marketing is that it is affordable and can be highly profitable. However, it does involve a higher risk, specifically because companies rely on just one or a few small segments to generate all of their business.

Other target marketing levels include undifferentiated marketing, differentiated marketing, and micromarketing.

concentrated marketing segmentation chart

Example

Southwest Airlines is a US passenger airline covering the USA and parts of Mexico and the Caribbean Islands. When Southwest Airlines began serving intrastate commuters in Texas, rather than focusing on a larger market segment, the airline focused on a smaller, niche market. Today, Southwest has expanded its operations to cover more territory and is the nation’s largest airline in the USA.

 

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