Niche Marketing

Concentrated marketing focuses on targeting a specific, well-defined niche market segment. Instead of targeting a broad market, companies using this strategy identify a small but profitable segment with specific needs or preferences and tailor their offerings to serve that segment exclusively. By focusing on a niche, companies can establish a strong market presence, build deep customer relationships, and become experts in meeting the unique needs of that particular segment.

An example of concentrated marketing is Lululemon:

These three marketing strategies are connected to the concept of differentiation in that they involve making strategic choices about how to position and target a company’s offerings in the market. Differentiated marketing and concentrated marketing specifically emphasize the importance of understanding customer segments and tailoring marketing efforts to meet their specific needs, while undifferentiated marketing relies on a more generalized approach. The choice of marketing strategy depends on factors such as the company’s resources, capabilities, target market characteristics, and competitive landscape.