Concentrated Marketing

Rather than trying to market its products separately to several segments, a firm may opt for a concentrated marketing strategy. With concentrated marketing (also known as niche marketing), a firm focuses its efforts on profitably satisfying only one market segment. This approach can appeal to a small firm that lacks the financial resources of its competitors and to a company that offers highly specialized goods and services.

Along with its benefits, concentrated marketing has its dangers. Since the strategy ties a firm’s growth to a specific segment, sales can suffer if new competitors appeal successfully to the same segment. Furthermore, errors in forecasting market potential or customer buying habits lead to severe problems.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: