What is concentrated marketing?

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What is concentrated marketing?

One of the outstanding aspects of today’s marketing techniques is that they are totally adaptable to a multitude of situations. The degree of specialisation is remarkable and every day we are surprised by the way in which we can reach more specific and concrete places. An example of this trend is the so-called concentrated marketing, a way of reaching particularised segments of our market in a more effective and concrete way. Here we explain what targeted marketing is and how we can take advantage of it.

Segmentation, the first phase of any marketing strategy

Before going into the details of concentrated marketing, we should explain some aspects of how it works. In this case, we refer to the identification of our market space. When we segment, we discover particularities of the target audience we want to reach. In fact, it may seem homogeneous for various reasons, but the reality is that diversity prevails.

For example, we sell shirts, the target is men, young, executives, with above-average income. Perfect, it seems that we are on the right track, but it turns out that in this segment, there is a specific group, which is differentiated according to location and is the one we are closest to. Well, segmentation allows us to recognise an additional micro-niche that we will target individually.

Concentrated marketing as an answer to diversity

This is precisely how the idea of the micro niche and the need for specific strategies is born. This is concentrated or mono-segment marketing. It is an extreme particularisation of our market niche, which facilitates the planning of concrete and direct strategies. There are many reasons for its emergence, among them:

  • Extreme competition in broader niches. Nowadays there are so many campaigns on the move that generalise customers. The answer to this situation is specificity.
  • Coverage of specific groups. Another condition of today’s society is the concern for minorities, which is reflected in marketing. It is about taking advantage of a concept in vogue, defined by inclusion.
  • Locating a specific niche, determined by a considerably small size, allows you to compete against large companies without wasting resources.
  • This type of management works as a perfect reference for any expansion, as it functions as a monitor for future actions.

How does concentrated marketing work?

This is a modality that responds to a series of basic characteristics. They have a basic objective, set out in terms of reaching a specific public. Let’s see how to characterise it:

  • We work with specific market segments. We focus our attention on a small segment that we try to differentiate as well as possible.
  • The target is quite specific, which allows us to establish a very specific buyer persona.
  • The preferred segments are located in those populations that are normally ignored by large companies. It also happens that they are part of a wider conglomerate, but it is possible to serve them in a specific way.
  • The brand tries to relate as closely as possible to the segment as part of its identity.
  • Competition is limited and may even be complementary, taking on different parts of the same segment. The ideal in these cases is a business alliance with other brands in the same segment but with different products.

The comparative advantages of concentrated marketing

In this case, we can assume that the direct relationship is the best advantage, because you interact directly with your customer. Specificity also brings the benefit that conversion and loyalty are much easier. Also, competition is much more even because the big players do not intervene. This allows you to work with fewer resources and generate more visibility from direct approaches.

It is also easier to offer products and charge a little more because they are customised. This is coupled with reduced costs associated with the campaign because the campaign is run on much smaller stages. This means that the strategies you propose can be placed in closed areas without too much additional logistics.

And the disadvantages…

Not everything is perfect, but they are minimal. The first is that your sales volume is lower than in other options. In addition, it is possible that the identity that associates you with the selected niche forces you to anchor yourself to it. Also, when you have a strong competitor, it is costly to develop contingency plans.

How to succeed in concentrated marketing?

There are several ways to generate a successful marketing model, but you must take into account the following points.

Defining the niche

This is perhaps the most important aspect of the strategy, knowing your target customer. The definition starts with estimating the ideal niche based on a good segmentation of the market. It must also be a segment that offers a certainty in terms of potential sales volume. To establish this, you can search for products in specialised companies and see what the movement of these products is. Then you locate the target of the people you can access and combine the information to obtain an accessible and safe niche.

Check the movement of the competition

This is done in order to find out what part of the market they are not covering effectively. It is another way to find your ideal niche. Business Intelligence works as a tool to identify strengths and weaknesses of your competitors.

Define your working model according to your micro-niche

We all have preferences for certain ways of accessing a product or service. Therefore, the ideal is to locate the model that your chosen segment prefers for shopping.

In many ways, what prevails in these options is creativity and generating expectation for attention. In this place, you will find interesting data to develop your concentrated marketing campaign.

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