What is Concentrated Marketing?

Concentrated marketing, also known as niche marketing, is a market-coverage strategy in which a firm goes after a large share of one or a few segments or niches. 

Concentrated Marketing vs. Other Target Marketing Strategies

Concentrated marketing focuses on a large share of a small, well-defined market, unlike other target market strategies that focus on smaller shares of a broader market.

Concentrated marketing allows smaller firms to focus their limited resources on serving niches unimportant or overlooked by larger companies. Many companies, specifically online E-Commerce sites, focus on niche markets to get a foothold over larger competitors before they branch out.

The upside to niche marketing is that it is affordable and can be highly profitable. However, it does involve a higher risk, specifically because companies rely on just one or a few small segments to generate all of their business.

Other target marketing levels include undifferentiated marketing, differentiated marketing, and micromarketing.

undifferentiated marketing - target market levels chart - marketing binder

Concentrated Marketing Example

When Southwest Airlines began serving intrastate commuters in Texas. Rather than focusing on a larger market segment, the airline focused on a niche market. Today, South West is the nations largest airline in the USA.

 

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