The strategy of a product's behavior on the market is of great importance for its successful implementation. In marketing, the process of planning and implementing the implementation of goods and services can be carried out using various effective paradigms of strategies and techniques. One such paradigm is concentrated marketing.
Concentrated Marketing Concept
The main goal of marketing in general is to minimize the effort to market products and services through deep consumer research. Marketing theory aims to make a product sell itself. Marketing manages social processes, generates demand, meets the needs of the consumer.
In marketing science, various strategies for managing social processes are distinguished, one of such strategies is concentrated marketing. Unlike mass marketing, a concentration strategy involves focusing efforts to promote a product or service in one or more market segments. Goods and services are offered for a certain circle of consumers, that is, any one need is selected that the proposed product or service can satisfy. As part of a concentrated marketing strategy, a company, for example, may offer a product that is unique, non-standard, a product that competitors cannot copy.
Pros and Cons of Concentrated Marketing
The undoubted advantage of the concentrated marketing strategy is a strong position in the selected market segment. A company concentrating its efforts on a small group of consumers is well aware of their needs and can effectively satisfy them, thereby earning the trust, respect and commitment of consumers to the product or service offered.
In addition, through such a narrow specialization, the company can achieve savings in other areas of its activity. Due to the uniqueness of the offered product, the manufacturer can offer it at an inflated price.
A concentrated marketing strategy is great for small businesses that manufacture specialty products. Another plus when choosing this strategy is that in the selected segment the company either will not have competition, or it will not be high.
The disadvantages of concentrated marketing include, of course, high risk and vulnerability. Companies operating in a narrow segment are completely dependent on the needs of consumers, on their tastes, which can suddenly change.
Also, the negative side of this strategy is its temporary nature. For example, it is great for developing a new market segment, but once this task is completed, it is necessary to move on to a different marketing strategy or enter other markets.
Concentrated marketing can only ensure undeniable success for companies that offer an extremely unique product that cannot be copied or replaced.
