Concentrated marketing strategies: Explaining the how and why

The goal of many marketing strategies is to cast as wide a net as possible, but that’s not the case when it comes to concentrated marketing. Instead, companies employing a concentrated marketing strategy create offers for one very specific segment of the market. It is often employed by startups, companies with niche products, and small businesses with limited budgets. A concentrated marketing strategy can also be helpful for established companies launching new products.

Like any marketing strategy, concentrated marketing has pros and cons, working better for some products and services than for others. In this article, we’ll explore the difference between differentiated marketing, undifferentiated marketing, and concentrated marketing, discuss the best use cases for concentrating your marketing, and take a look at the companies that have used this tactic successfully.

Most consumers  — and even many marketers — are familiar with undifferentiated marketing, also known as mass marketing. Using one message to reach an entire audience, often via TV commercials, print ads, billboards, or other advertising formats meant for mass consumption, can help companies build brand recognition. Because undifferentiated marketing does not require your team to create multiple messages of pay-to-target premium audiences, it is largely cost effective.

Undifferentiated marketing is often the path of least resistance, as it doesn’t require in-depth market research and doesn’t require brands to constantly change up their messaging. However, taking this road also means you won’t find a high percentage of loyal customers, leaving the door wide open for  challengers who identify and focus on market segments you may be serving to swoop in and steal your customers.

Differentiated marketing is the middle ground between mass marketing and concentrated marketing. Marketers who employ this strategy focus on two or more well-defined segments and develop messaging for each. This allows marketers to better address the needs of individual customer segments, while still balancing the need to reach more people and drive revenue.

However, differentiated marketing can be expensive and may also lead to less cohesive brand identity. Not only does it require your team to develop multiple campaigns  based on in-depth market research,  it may, at times, lead to conflicting messaging leaving different people with very different ideas about your brand.

Finding examples of concentrated marketing can be difficult because, because of the nature of the campaigns, they are not widely known. Concentrated marketing targets small, discrete segments and inherently often goes unnoticed by those outside of those groups. However, luxury car brands,targeting very small, wealthy groups of people, often deploy concentrated marketing strategies. For instance, Rolls Royces Ghosts Series II and Tesla Model 3 commercials are aimed at high-income audiences looking for luxurious, high-end experiences.

Because of its focused, targeted approach, concentrated marketing can help new companies increase sales revenue rapidly. By focusing all of your marketing budget on one core audience and one or two channels, not only do you save money — or at least put your budget to more efficient use — but you should see better, more rapid results. Cornering your target market will set you up for success and further growth down the road.

For many companies, concentrated marketing is a strategy they employ early on in their development, choosing to expand into new markets as they grow. Others, especially small businesses catering to local markets, may never choose to expand beyond one market. If you’re interested in concentrating marketing for one audience, here are a few tips to get your team started.

If you’ve decided to undertake a concentrated marketing strategy, taking these steps will ensure your path to success:

• Get to know your audience

  When you focus your marketing on one segment, it is mission critical to understand that audience inside and out. Understanding your customers begins with market research. Go beyond demographic information to understand what motivates them to make a purchase, which channels work best to reach them, and what ad formats they will respond to. Armed with this information, your team will be able to understand which marketing mix will work to reach your narrow target audience most efficiently.

• Choose your channels

  Secure in the knowledge that you’ve done your research, it’s time to choose your channels. Because you’re taking a concentrated approach you may choose just one channel, like social media,or just a few — maybe social media and in-app video.  This makes it very important not to over extend your campaigns. Keep them focused on the channels most likely to reach your ideal customers.

• Get creative and build your messaging

  With your customer in mind and your channels chosen, it’s time to think about your creative. You should know what messaging your audience will respond to, whether it's about pricing, values, or functionality, and be ready to develop creatives to fit your chosen ad formats.

With these pieces in place you have the foundation of your concentrated marketing campaign in place. After you launch your campaign it’s important to test and track! By tracking campaign results, testing different creatives, and understanding attribution, marketers gain greater understanding of their audiences. This is especially important when your team is focusing all of its efforts on one market. As you learn more, continue to tweak your campaign so it resonates even more with your potential customers and the audiences you’re targeting. Even the smallest marketing teams can easily test and measure with an optimized concentrated marketing strategy.

Want to learn more about the trends shaping mobile marketing? Check out these five predictions from Adjust for 2022.