Before a company enters the consumer market, its experts evaluate the capabilities of the enterprise and the subsequent strategy for promoting goods and services. Concentrated marketing allows enterprises with a limited budget, starting their activities, to make significant profits. However, this approach is fraught with a certain risk, since orientation to one market segment can lead to lower revenues in case of loss of interest in this type of goods or services.
Concentrated marketing
A similar technique is used by companies that promote alcohol, meat, clothing, machinery, and industrial equipment. Sometimes a company with differentiated or undifferentiated marketing can use concentrated marketing in its practice to sell a certain type of product. An example of this is the company General Motors, which resorts to this method of market segmentation to more accurately reach the target audience in the production of new car models.
Concentrated marketing is the so-called targeted marketing. It identifies the audience of consumers, which are divided by the criteria:
- gender;
- place of residence;
- a certain amount of income;
- desire;
- audience goals
- fears;
- needs.
If such monitoring is not carried out, it will be impossible to determine either the course of the advertising campaign or predict future revenues or risks. Concentrated marketing was created with the aim of maximally accurately benefiting its target audience. Examples:
- funeral services;
- goods for the newlyweds;
- wedding preparation;
- Products for children.
Target Market Segments
The market is divided into parts, each of which to one degree or another responds to a specific request. With the help of a thorough analysis, all consumers are divided into groups with similar requests. Under them create a proposal. Depending on what type of market positioning the company chooses, it directs its activities either to one or several market segments.
Concentrated Marketing in Action
To understand how this or that market segment is created, we give the main criteria for the distribution of the target audience to specific groups. Produce a thorough analysis. One segment will include people with a specific place of residence: city or village (population density is taken into account), region, transport links, climate, presence of competitors and legal restrictions.
The following is a demographic analysis of this target audience: age, gender, profession, education, income, marital status and lifestyle. Be sure to consider the attitude of consumers to the brand that they want to introduce to the market, how popular it is and what is the audience’s loyalty to it. It takes into account the motives for which purchases are made, as well as the degree of importance of the goods of this company to customers.
As you can see, before entering the market, companies conduct careful monitoring and may refuse to develop in some regions due to low demand for their offers. Thus, we see that any type of work in the provision of goods and services is associated with risk. Each company chooses the most comfortable marketing for itself, however, without clear planning and analysis, any of the above methods will be subject to fluctuations.