The marketing of Rolls Royce automobiles is an example of concentrated marketing because it targets the luxury automobile market group. The marketing of Volkswagen automobiles in the United States throughout the 1950s, which targeted the economy car sector, is another example. Concentrated marketing often necessitates limited resources and capacity, as widespread advertising is uncommon.
For concentrated marketing to be successful, a company must have a superior marketing campaign for its target market than its competitors. This programme must exploit the firm’s competitors’ flaws while avoiding their strengths. A corporation must avoid large segments with intense rivalry and concentrate on locating a profitable section that has been neglected by other businesses. Concentrated marketing can create a niche for a product, but it cannot optimise earnings because it focuses on a single market group.
To extend its market, a business may pick a differentiated marketing approach that targets multiple market sectors. This is a potential choice for businesses with diverse items that appeal to various market segments. Typically, an airline sells first class, business class, and economy class tickets, which appeal to all types of travellers.
Coca-Cola previously utilised undifferentiated marketing to target whole markets with a single product. Typically, undifferentiated marketing relies on a straightforward message that resonates to a large audience.