Whenever you start a business, some questions need to be answered. One of these questions is who you will be marketing to. Are you using a concentrated marketing strategy, or you’re opening your reach?
Deciding your target market isn’t something simple. There’s no book of instructions that you can follow to answer these tough questions.
However, a more straightforward option can make it easier for you to plan your marketing efforts. It is the choice between opting for a concentrated marketing approach or marketing to a broader, horizontal consumer base. No need to get all clueless with the jargon. These two are marketing systems that companies adopt, and they can be understood relatively simply.
The biggest companies that manufacture products for a wide variety of customers are the ones that have a “horizontal market.” Hence, every stage of their business, from production and marketing to distribution, is carried out on a broader scale.
On the other hand, some companies only manufacture a specific product with a focused consumer base. Such companies opt for a concentrated marketing approach.
Purpose of Concentrated Marketing
The primary purpose of concentrated marketing is to direct all the crucial logs of your business towards a specified and strictly defined consumer base. All the different phases of your business need to work in tandem to ensure that you reach out to your target audience.
Many small and medium-scale companies prefer concentrated marketing because there’s a better chance of creating the brand as a specialist in the field. The target audience is limited, focused, and well-defined.
In a nutshell, a concentrated marketing system works well if your goal is to take charge of a niche market. Hence, if you believe your product idea to be worthy of solving a significant problem in the long-run, a concentrated marketing system is your best option.
Is Concentrated Marketing Right for Your Business?
It is a big decision to make for any business owner. Would you be better off having a focused, concentrated marketing approach or a more comprehensive approach?
Becoming the go-to solution in your niche for your customers is hard work. With all the benefits the concentrated marketing approach has, it requires a lot of effort.
For instance, it allows you to thoroughly study consumer behavior as your target audience is a lot more focused. Simultaneously, it is not one of the most straightforward tasks to read consumer behavior and develop ideas that meet it.
Similarly, the highly targeted approach of concentrated marketing gives you a better return on investment when it comes to advertising. With a limited target audience, you can better understand the messages that you need to put out there to attract those eyeballs. Furthermore, a close study of consumer behavior is sure to back you up in devising a long-term concentrated marketing strategy as well.
Now that you know the benefits back the concentrated marketing approach let’s move on to the important part. How do you get started with concentrated marketing? What are the important aspects that will prove undeniably vital to the success of your strategy? As mentioned above, the concentrated marketing strategy can work wonders but only if it is done right.
Getting Started With Concentrated Marketing
All the dedication and hard work put into standing out as a specialist in your niche won’t pay off if it isn’t done smartly. But what does smart mean when it comes to concentrated marketing? Let’s find out the most important steps you need to know to get started with concentrated marketing.
Let’s find out the most critical steps you need to know to get started with concentrated marketing.
When it comes to any marketing strategy, solid research is what you need to get started. You need to thoroughly examine the needs you are willing to fulfill and define your customer personas clearly.
Once you’re done with the “who” part of your target audience, you need to have a definite “why.” It would require an in-depth analysis to come up with your customer's persona in touch with reality. Research is that part of your VMS that should not be taken lightly. It is the foundation on which your strategies will stand, so make sure it isn’t shaky or incomplete in any way.
Once you’re done with defining your buyer persona, it is time to move on to planning the content. What messages are you going to rely on to convert potential buyers?
Remember, the content needs to be well-tailored to fit in perfectly in your niche but stand apart from the crowd at the same time. From clearly defining your USPs to being consistent with the tone of voice you wish to market in, the content you put out should perfectly complement your business's “why” and make it convenient for potential buyers to understand.
You can collaborate with distributors with much more efficiency in a concentrated marketing approach than you could have with horizontal markets.
You need to know both online and offline spaces where your target audiences spend a lot of their time. It is in these places that you have to be a lot more visible. Only then will your well-crafted content get you the intended results.
Another benefit of opting for a concentrated marketing system is that a focused market makes it easier for you to plan and execute your strategy's three phases. A limited target audience makes the research a lot more narrow and focused. Similarly, crafting content relevant to your target audience and putting it out there in the space where it matters gets easier.
Developing a Sound Strategy
When you’ve figured out your target customer, and you have a clear message that you want to send out there, it is time to be out there at the right place, at the right time. After all, even with the best research and great content, if your strategy isn’t up to the mark, it’s hard to get the desired results.
So, let’s get right into the planning and execution of your strategy.
Zero In on Your Channels
First of all, you need to be as clear as possible about the channels where your sales messaging will be the most effective. For instance, some industries have newsletters or periodicals that are a household name among all stakeholders. Finding space for your brand on such channels will give your company the much-needed reputation boost.
Event Marketing for B2B
When you have a concentrated market, you are looking to reach out to people looking for experts in the niche. This makes event marketing a handy tool to invite your target audience segments and build your brand’s name as an industry specialist. Primarily, for B2B leads, event marketing is sure to attract a healthy number of leads for you.
Find the Right People
When you enter an industry, there are always people on your list who exert a lot of influence. It can be influencers themselves or the top distributors. All you need to do is make sure you find ways to work with the best among them. This is how your brand will slowly begin to get the attention it needs to be established as a trusted name.
Take Help of Storytelling
When it comes to establishing your brand as an industry specialist, telling valuable stories becomes very important. You can use case studies as a tool to present the social proof of your ability to serve and fulfill industry-specific needs.
The goal of putting out these stories is to show your consumer base that you’re aware of and care about their needs and are willing to work hard to fulfill them. After all, concentrated marketing is all about identifying and interacting with your focused target audience.
Review Your Execution
As your concentrated marketing strategy is executed, make sure you keep reviewing it. See what content is proving useful and what isn’t being as impactful. The channels that have boosted your brand’s reputation and those that haven’t been as helpful.
By continually checking the progress, you can mold your strategy whenever and howsoever necessary. Also, you will keep getting new insight into consumer behavior and any changes that it goes through.
Right Content to the Right People
When you wish to become an industry specialist, your content becomes essential. But to stand out in your content, avoid generic industry-related stuff. Try to spot topics that would concern your buyer persona and craft your content around them.
Furthermore, try to make your content as easy to understand as possible. After all, your goal is not to draft the most impeccable content with a lot of jargon. It should be easy to interact with your target audience.
Don’t just create content to get credit for being clever — create content that will be helpful, insightful, or interesting for your target audience. — David Ogilvy
Concentrated Marketing starts with you knowing all about the people you want to sell to. If done right, it ends at your target audience, knowing what you offer and how committed your brand is towards anticipating, identifying, and solving their problems.
The only way to do this is through impactful content that speaks to your customers and considers their unvoiced opinions and concerns. As they say, marketing is all about telling honest stories that appeal to your target audience.
Benefits of Concentrated Marketing
There are many benefits of adopting Concentrated Marketing for a business with a more focused goal regarding what they sell and why they sell it. Let’s discuss it in detail:
1. Brand Establishment
When you choose to go for concentrated marketing, it becomes much easier to establish your brand by targeting a specific audience. Similarly, when you focus your marketing on a limited number of industries, your target audience is select and well-defined.
This gives more value to your marketing efforts and inspires a sense of trust in your consumer base. In turn, you can quickly identify and target the most profitable customers when your market is narrow.
2. Better Understanding of Customers
When your business has a concentrated market, your sales messaging gets a lot sharper. You have better insight into your customer’s needs as they’re a lot more compact. This makes it easier for you to prepare your messaging to your customers and increase your conversion chances. In a nutshell, understanding any industry's nuances come in handy when targeting and selling to a certain kind of customer.
3. Better Opportunities
When your market is more focused, it gives you the lead in coming up with new services and products. If you have the correct understanding of your particular industry, you will anticipate unmet needs and develop solutions.
This head starts that experts in the industry get doesn’t belong to companies with a horizontal market.
4. Solid Networking
Reaching out to key players within the industry also gets a lot easier when you have a concentrated market, and your focus is narrower. Identifying the most significant influencers and reaching out to them is sure to take you a step ahead of the competition.
5. Well-Defined Marketing Plan
Every industry has its unique needs that your business needs to fulfill to succeed. When you begin with a narrow market, these needs are much more discernible.
Your marketing efforts in all stages are directed towards a defined goal and according to a well-crafted plan. On the other hand, the spray-and-pray horizontal approach makes it hard to pinpoint such vital factors and devise the strategy according to them.
6. Fewer Competition
Another benefit of opting for concentrated marketing is the lack of quality competition. The narrower your market, the more specific will be the needs that your product is intended to fulfill. This would mean that there would be fewer companies making the same product, and with the right product, you’re more likely to succeed and rise above the little competition at hand.
That said, it isn’t as easy to make a name for yourself to reach a point where you are the only competition. The few competitors that you will have are going to be experts like you.
7. Product Specialization
With concentrated markets, there’s a lot of opportunities for companies to bring in specialized products to meet industry needs.
It would also give the company an idea regarding the kind of customer they want to market to. From production to marketing and distribution, concentrated markets make it easier for companies to make a reputation for themselves in their industry.
8. Benefits of Being Industry Experts
Lastly, from the customer's perspective, there is an increased willingness to look for experts in the field while purchasing and building a trusted market.
In a nutshell, there indeed are benefits of concentrated marketing. Especially when it comes to advertising and sales messaging, it makes things way more productive and manageable. Yet, the question remains whether or not it is suitable for your business. After all, every company has its own needs and should be marketed accordingly.
More Benefits With More Hard Work
As compared to the wider approach that big corporations take, the concentrated marketing approach is sure to provide you with a better shot at ending up with the desired result.
When you’re so focused and specific with your target audience, you cannot afford not to reach the right people. To ensure you do, every phase of your strategy, starting from research to distribution, has to be done right.
To become the go-to brand within your niche, you require a perfect mixture of planning, patience, and perseverance. Now that you know how useful this approach can be, it is on you to figure out whether you wish to go for it. If you’re already convinced, go ahead and start with your research.
After all, it is substantial research that lays the foundation for your concentrated marketing strategy.