The strategy under consideration provides undoubted advantages in terms of rapid market coverage. Due to precise segment selection, audience description, and product development, it is possible to take leading positions in the industry in the shortest possible time. At the same time, advertising costs are reduced in technologically more developed areas. Another positive aspect is that in a limited production niche, the company can confirm its professionalism. Therefore, even in the event of a transition to another segment, the business maintains a high reputation.
Advantages and Disadvantages of Concentrated Marketing
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However, there is a possibility thailand email list of losing positions. With a small number of competitors, each of them can get ahead by offering a better service or product. In addition, a negative consequence of using the strategy is the inability to expand the business. Due to the limited target audience, sales will gradually reach the maximum volume at which the product will be sold to all potential customers. If the product is quickly consumed and needs to be purchased again, it becomes possible to establish stable sales in the selected area. However, the demand for expensive and technically complex goods in a narrow segment at some point falls to a minimum.
Certain difficulties may be associated with the company's attempts to test effective promotion schemes in another segment. Due to the narrow focus of the market, it is characterized by specific requests and methods of influencing clients. Such methods do not work on another audience, in addition, a successful manufacturer of specific products does not enjoy universal recognition. For example, the name of a company that produces sport rifles is unlikely to be familiar even to passionate fans of biathlon.
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Frequently Asked Questions About Concentrated Marketing
In the context of ever-increasing competition, the strategy of concentrated marketing has become widespread. Thanks to this, companies can take into account the needs of the target audience, form quality offers, and customers, in turn, gain valuable experience and remain loyal to the brand longer.
What price should I set?
When assigning it, you need to be flexible. The essence of concentrated marketing is that the assortment offered to a small category of clients is represented by a single product. At the same time, it should cost less than analogues, for which you can initially indicate a reduced amount in the price tag, announce sales or resort to loyalty programs.