What Is Concentrated Marketing? How to Apply It in Practice

Concentrated marketing is an effective strategy for reaching potential customers and growing revenue and profit. However, businesses need to think carefully before adopting it to make sure it pays off. In this article, The7 gives you a detailed look at concentrated marketing and the best ways to optimize this strategy for your business.

1. What Is a Concentrated Marketing Strategy?

The term “Concentrated Marketing – Centralized Marketing Strategy” refers to an approach in which a business puts all of its resources into one specific market segment instead of trying to reach the entire market.

A concentrated marketing strategy can work at several levels, from choosing one specific customer group, to choosing one specific advertising channel, or even focusing on a single product or service. This way, a business can optimize its marketing to capture the attention of its target audience more effectively.

The core result of this strategy is a solid position in the market that is hard to displace. That position not only strengthens the business’s standing today but also lays a powerful foundation for future growth.

So which businesses should adopt this strategy? It is generally seen as the best choice for small and medium-sized businesses. It is also popular with businesses that are in the process of “capturing the entire market” in the first stage of entering a new market.

2. Advantages and Disadvantages of Concentrated Marketing

Businesses need to understand the specific advantages and disadvantages of concentrated marketing in order to put it into practice more effectively.

2.1 Advantages

• A solid market position: By concentrating resources on the most important part of the market, concentrated marketing helps a business hold its position in a promising market.
• Product exclusivity: Focusing mainly on customers’ needs and wants helps a business achieve product exclusivity.
• Building competitive barriers: Concentrated marketing plays an important role in creating competitive barriers against other brands in the industry.
• Closing the gap between business and customers: Focusing on one specific market segment helps a business engage effectively with customers and respond quickly to changes.
• Developing unique strengths: A business has the chance to develop its special strengths and maximize revenue.

2.2 Disadvantages

• High communication costs: Communication costs can run higher than expected because of the adjustments needed to fit the market the campaign is aimed at.
• Dependence on one market segment: Relying on a single market can weaken a business’s competitive position when technology, customer needs or market conditions change.
• Facing strong competition: A business may face strong competition from rivals that use differentiation strategies or have greater resources.

3. How to Implement a Concentrated Marketing Strategy for Your Business

To implement a concentrated marketing strategy effectively, businesses can follow this process:

• Step 1: Define the goals of your concentrated marketing strategy and research your brand, products and services in detail.
• Step 2: Conduct in-depth market research using tools & techniques such as:
  • SWOT analysis: Helps a business identify its strengths, weaknesses, opportunities and threats when carrying out a concentrated marketing strategy.
  • PESTLE analysis: Helps a business assess the environmental factors that affect how it carries out a concentrated marketing strategy.
  • BCG matrix analysis: Helps a business evaluate the position of its products/services in the market and choose a suitable strategy.
  • 4P marketing analysis: Helps a business build an effective concentrated marketing strategy by defining the right product, price, distribution and promotion.

• Step 3: Clearly define market segments based on customer behavior or needs.
• Step 4: Identify the target market by using the Directional Policy Matrix (DPM) to evaluate the condition of each market.
• Step 5: Build the marketing strategy, including communication, brand promotion, competitive pricing, marketing channels and advertising of the product’s value.
• Step 6: Draw up the implementation plan, covering sales reserves, channel organization, capital investment, ordering and delivery, resources, pricing and gross margin, and marketing communications and sales.
• Step 7: Monitor and carry out the plan, evaluate progress and customer satisfaction, and adjust the strategy when necessary.

4. Real-World Examples of Concentrated Marketing Strategies

To see in detail how a concentrated marketing strategy can be applied, let’s look at three specific examples from three well-known brands:

4.1 Tân Hiệp Phát’s Strategy

Although it entered the beverage market late compared with international rivals such as Pepsi and Coca-Cola, Tân Hiệp Phát succeeded by focusing mainly on Vietnamese consumers and on a taste that is distinctly Vietnamese: the habit of drinking tea.

Tân Hiệp Phát has launched many strongly competitive products, such as Trà Xanh Không Độ and the Doctor Thanh herbal tea line. These products not only pioneered the non-carbonated soft drink market but also won the favor of a broad base of consumers.

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4.2 The Strategy of Rolls-Royce Motor Cars Limited

As a British luxury car maker, Rolls-Royce focuses on producing exclusive Rolls-Royce automobiles. With a reputation for quality and high value, the company targets customers with at least 30 million dollars in liquid assets.

Every Rolls-Royce comes with a personally signed letter from the company, adding a sense of uniqueness and luxury for the customer.

4.3 Starbucks’ Strategy

Starbucks’ “I Am” campaign, launched in 2020, marked an important step toward reaching the transgender community in Brazil and also celebrated Starbucks’ 50th anniversary. The campaign offered a journey honoring the power of connecting through coffee in the LGBTQ+ community.

Through “I Am”, Starbucks focused on showing its commitment to diversity and to the acceptance of everyone in the LGBTQ+ community.

The campaign created space and opportunity for transgender people and the wider LGBTQ+ community to feel celebrated. It is also seen as a reflection of Starbucks’ values and its vision of a diverse and sustainable society.

5. Basic Concentrated Marketing Strategy Plan Templates for Businesses

Marketing Strategy for a Women’s Fashion Brand

• Goal: Raise brand awareness and drive sales.
• Audience: Women aged 25 – 35 with average or higher income who are interested in fashion and shop online.
• Distribution channels: Website, social media (Instagram, Facebook), e-commerce platforms (Shopee, Lazada, Tiki).
• Content:
  • On the website:
    • Articles on the fashion trends that attract the most interest.
    • Articles sharing tips on mixing outfits and shopping.
    • Articles introducing the brand’s new products.

• • On social media:
    • Images of fashion products.
    • Outfit-styling tutorial videos.
    • Audience engagement activities (mini games, giveaways, etc.).

• • On e-commerce platforms:
    • Optimize your store pages on e-commerce platforms.
    • Run ads for fashion products on e-commerce platforms.

• Schedule:
  • On the website: Publish 2 new articles every week.
  • On social media: Publish 1 new video every week and 5 new images every day.
  • On e-commerce platforms: Run ads every month.

• Measuring performance:
  • Website traffic rate.
  • Total number of followers on social media pages.
  • Engagement with content on social media.
  • Sales on the website and e-commerce platforms.

Concentrated Marketing Strategy for a B2B Business

• Goal: Find potential customers and drive sales.
• Audience: Businesses and organizations that need the company’s products/services.
• Distribution channels: Website, social media (LinkedIn, Twitter, Facebook), seminars, events.
• Content:
  • On the website:
    • Articles about the company’s products/services.
    • Articles about solutions and new trends in the industry.
    • Articles about customer case studies.

• • On social media:
    • Posts sharing knowledge and professional information in the industry.
    • Posts about relevant events and seminars.
    • Posts about the company’s achievements and awards.

• • Seminars and events:
    • Take part in organizing industry seminars and events.
    • Run the company’s own seminar and event programs.

• Schedule:
  • On the website: Publish 1 new article every week.
  • On social media: Publish 1 new post every week and 5 short posts every day.
  • Seminars and events: Take part in 2 events every month.

• Measuring performance:
  • Website traffic rate.
  • Total number of followers on social media.
  • Engagement with content on social media.
  • Interest from potential customers.
  • Sales.

The examples above are for reference only. To build an effective concentrated marketing strategy, a business needs to base it on factors such as goals, audience, budget, distribution channels, content, schedule and how performance will be measured.

We hope this article has added to your knowledge of concentrated marketing and related communication strategies and helps make your work more effective. If you have any questions, or want advice and support with marketing knowledge or with using our marketing consulting services quickly and effectively, don’t hesitate to contact The7 today.

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