Concentrated Marketing Strategy:

This approach is called concentrated marketing strategy because the marketers endeavor to serve a single market-segment. For example the manufacturers of BMW cars and Mercedes-benz cater for the affluent consumers in different countries.

Advantages of Concentrated Marketing Strategy

• Its main advantage is that the firm has a good chance to specialise by concentrating its efforts on a single market-segment.
• The firm has the opportunity to carefully analyse its customers' needs and wants then concentrate in satisfying the identified needs. Hence the firm can generate a large sales volume if it deeply penetrates that single market-segment.

Disadvantages of Concentrated Marketing Strategy

The danger is that the firm puts all its eggs in one basket. Should the demand for the product decline, the firm would get into problems.