Before a company enters the consumer market, its specialists evaluate the company's capabilities and the subsequent strategy for promoting goods and services. Concentrated marketing allows businesses with a limited budget, having started their activities, to make a significant profit. However, this approach also carries a certain risk, since focusing on one market segment can lead to a decrease in income in case of loss of interest in this type of goods or services.
Concentrated marketing
This technique is used by companies promoting alcohol, meat, clothes, cars, industrial equipment. Sometimes a company with differentiated or undifferentiated marketing may use concentrated marketing in its practice to sell a certain type of product. An example of this is the company General Motors, which uses this method of market segmentation to more accurately hit the target audience when producing new car models.
Concentrated marketing is the so-called target marketing. Heidentifies an audience of consumers who are divided according to the criteria:
- gender;
- place of residence;
- a certain amount of income;
- wishes;
- audience goals;
- fears;
- needs.
If you do not conduct such monitoring, it will be impossible to determine the course of an advertising campaign or predict future income or risks. Concentrated marketing is designed to bring the benefit of its target audience as accurately as possible. Examples:
- funeral services;
- goods for honeymooners;
- preparing weddings;
- goods 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 an offer. Depending on what type of market positioning a company chooses, it directs its activities either to one or several market segments.
Concentrated marketing in action
To understand how this or that segment of the market is created, we will give the main criteria for the distribution of the target audience into specific groups. Perform 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 loy alty of the audience to it. The motives for which purchases are made, as well as the degree of importance of the goods of this company for customers are taken into account.
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 proposals. Thus, we see that any kind of work in the field of providing 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.
