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The Concentrated Marketing Strategy Explained


When it comes to marketing, there’s no such thing as “one size fits all”. It’s important to identify which marketing tactics will work specifically for your business if you aim to succeed. In this article, you’ll learn about one such strategy called “concentrated marketing”.

What is Concentrated Marketing?

Concentrated marketing is a target marketing strategy that relies on a smaller and more narrow target audience. The core philosophy behind this tactic upholds that by thoroughly understanding and meeting the needs of just one specific audience, you can develop a loyal and sustainable customer base.

Concentrated marketing differs from some other marketing strategies, including differentiated and undifferentiated marketing. With undifferentiated marketing, you’re “casting a wide net” by appealing to a massive audience with common interests. On the other hand, differentiated marketing identifies multiple types of consumers and advertises to each group accordingly.

The key difference here is that with concentrated marketing, you’re exclusively serving this group. 

For example, imagine that a company launches a new brand of fruit punch. If the company is using concentrated marketing, they might only advertise the beverage as a children’s beverage. However, if they’re using a differentiated strategy, they would sometimes also advertise it to people interested in nutrition.

Through the use of concentrated marketing, companies can pinpoint one specific audience and work exclusively to please that market. Naturally, this strategy isn’t for everyone – there are benefits as well as costs for those who take this route.


Advantages of Concentrated Marketing

Concentrated marketing works best for luxury or high-end products. In these industries, consumers expect a certain degree of special treatment and respect. These customers are willing to pay more for a professional, high-quality product as long as the shopping experience meets their expectations. When using this marketing tactic, it’s imperative to focus on the customers above the product to help create that ideal experience.

Builds a Reputable Brand

When your company uses concentrated marketing, you’re presenting your brand as a leading expert in that industry. This contributes to your brand identity. There’s power in brand recognition and reputation. For instance, if a colleague told you they bought a car, you might not be impressed. However, your attitude would surely change if you heard they purchased a Tesla. That’s the power that’s in a brand name.

Caring deeply about your customers and going above and beyond also creates a reputation for devotion and loyalty. Your brand becomes more trustworthy when consumers know that you prioritize the customer’s experience.

Improves Customer Loyalty

This statistic may surprise you:  75% of American consumers say they’re more likely to stay loyal to brands that “understand them on a personal level”. Part of excelling at concentrated marketing means developing a deep understanding of your audience’s needs and preferences. You should know your ideal customer’s lifestyle well enough to even anticipate needs before they arise.

When you can reliably fill your customers’ needs and surpass their expectations, you’re creating a layer of trust between your brand and the consumer. This trust, as it strengthens over time, will lead to increased customer loyalty. This is how businesses with seemingly niche audiences become staples of their industry.

Pricing Power

In many cases, if a company offers a unique product that truly exceeds expectations, customers are willing to pay more for it. We see this all the time in our day-to-day lives. You might pay more for food via DoorDash than you’d pay through a drive-thru, simply for the convenience. Similarly, customers will often pay more for a luxurious or high-status item, especially when it’s manufactured by an industry leader.

Concentrated marketing makes this all the more possible. You can charge more for your product because not only is it great at what it does, but it’s made by a company of experts that consumers can trust.

Reduced Competition

Companies that use concentrated marketing experience a reduction in competition. This is because you’re serving the needs of such a small market that naturally there are fewer contenders. However, this is a substantial benefit, as it puts your brand at the forefront of the industry.


Disadvantages of Concentrated Marketing

Despite its numerous advantages, concentrated marketing isn’t entirely without flaws. There are reasons why not every business is using this strategy, and it’s because frankly, it doesn’t work for everyone. Here are some areas that might be of concern if you’re considering the concentrated approach.

Rigorous Industry Standards

Concentrated marketing performs better with high-end, luxury, or otherwise above-brow products and services. This is because you end up compensating for the small audience by charging more and adding value to your product. Consumers who respond to concentrated marketing have no problem paying a premium for high-quality goods but have much higher expectations in return.

Research Reliant

Market research is always an important step in identifying your target audience and their needs. However, when using concentrated marketing, research becomes absolutely critical. Because you’re working with a smaller, more specific audience, you need to know everything you can about them. Data can be more difficult to gather and examine due to smaller numbers.

Additionally, one simple mistake can sometimes backfire big. Failing to understand the cultural norms of your target audience can result in a social media misstep or a failed product launch. It’s crucial to spend extra time on market research when using this strategy to avoid these mistakes.

Limited Growth Potential

Because concentrated marketing relies on a smaller target audience, there’s limited growth potential with this strategy. However, that doesn’t mean you can’t create a successful company. Success with concentrated marketing comes from long-term customer loyalty and brand reputation.

Why Choose This Approach?

Despite some challenges that make this strategy a little more difficult, concentrated marketing is a brilliant approach. If you offer goods or services that are high quality and have a luxury or expert appeal, there’s a solid chance this strategy will be a winner for you.

Using concentrated marketing means playing the long game. Rather than just pushing everyone indiscriminately to purchase your product, you’re choosing to present it to a select few. Through building a reputable brand and devoted customer base, you build success over the course of years. As time goes on, you can continue to refine your product.


Although it’s not for everyone, concentrated marketing offers a unique approach to advertising which can prove very successful. With the right products and enough attention to brand development, your company could thrive using the concentrated approach.

Also read:

Understanding Behavioral Marketing and Its Benefits

The Niche Marketing Strategy Explained

Ari Bratsis
Team Writer: Ari is a writer, blogger and small business owner based in Washington state.

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Team Writer: Ari is a writer, blogger and small business owner based in Washington state.

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