Concentrated Segmentation vs. Target Segmentation

What's the Difference?

Concentrated segmentation and target segmentation are both strategies used in marketing to identify and reach specific groups of consumers. Concentrated segmentation involves focusing all marketing efforts on a single, well-defined segment of the market, while target segmentation involves identifying multiple segments and developing tailored marketing strategies for each one. Concentrated segmentation allows for a more focused approach and can be particularly effective for niche markets, while target segmentation allows for a broader reach and can help companies appeal to a wider range of consumers. Ultimately, the choice between concentrated and target segmentation depends on the company's goals, resources, and the characteristics of the market they are trying to reach.


AttributeConcentrated SegmentationTarget Segmentation
DefinitionFocuses on a specific segment of the market with a tailored marketing strategyTargets multiple segments of the market with different marketing strategies
ScopeNarrows down the market focus to a smaller group of consumersTargets a broader range of consumers across different segments
Resource AllocationRequires fewer resources as it focuses on a smaller segmentMay require more resources to target multiple segments effectively
CustomizationAllows for more personalized marketing efforts for the specific segmentMay involve less customization due to targeting multiple segments

Further Detail


Segmentation is a crucial aspect of marketing strategy that involves dividing a market into distinct groups of consumers who have similar needs and preferences. Two common approaches to segmentation are Concentrated Segmentation and Target Segmentation. While both methods aim to identify and target specific consumer groups, they differ in their focus and implementation.

Concentrated Segmentation

Concentrated Segmentation, also known as niche marketing, involves targeting a single segment of the market with a specialized product or service. This approach is often used by smaller companies with limited resources, as it allows them to focus their efforts on a specific group of consumers who are most likely to be interested in their offering. By concentrating on a niche market, companies can tailor their marketing strategies to meet the unique needs and preferences of that segment.

One of the key advantages of Concentrated Segmentation is the ability to establish a strong brand identity within a specific market segment. By catering to a niche audience, companies can differentiate themselves from competitors and build a loyal customer base. Additionally, focusing on a niche market can lead to higher profitability, as companies can charge premium prices for their specialized products or services.

However, Concentrated Segmentation also has its limitations. By targeting a narrow segment of the market, companies may miss out on opportunities to reach a broader audience and expand their customer base. Additionally, niche markets can be highly competitive, as other companies may also be targeting the same segment. This can make it challenging for companies to stand out and attract customers in a crowded market.

Target Segmentation

Target Segmentation, on the other hand, involves dividing the market into multiple segments and targeting each segment with a tailored marketing strategy. This approach allows companies to reach a wider range of consumers with different needs and preferences. By identifying and targeting specific segments of the market, companies can create personalized marketing campaigns that resonate with each group of consumers.

One of the main advantages of Target Segmentation is the ability to maximize market coverage and reach a larger audience. By targeting multiple segments of the market, companies can increase their market share and drive sales growth. Additionally, Target Segmentation allows companies to adapt their marketing strategies to different consumer segments, leading to higher customer satisfaction and loyalty.

However, Target Segmentation also has its challenges. Managing multiple segments can be complex and resource-intensive, requiring companies to develop and implement separate marketing strategies for each segment. This can be time-consuming and costly, especially for companies with limited resources. Additionally, targeting multiple segments can dilute a company's brand identity and make it difficult to establish a strong market position.


When comparing Concentrated Segmentation and Target Segmentation, it is important to consider the specific goals and resources of the company. Concentrated Segmentation is ideal for small companies with limited resources that want to establish a strong brand identity within a niche market. By focusing on a specific segment, companies can differentiate themselves from competitors and build a loyal customer base.

On the other hand, Target Segmentation is more suitable for larger companies with the resources to target multiple segments of the market. By reaching a wider audience with tailored marketing strategies, companies can maximize market coverage and drive sales growth. However, managing multiple segments can be complex and costly, requiring companies to carefully balance their resources and priorities.

In conclusion, both Concentrated Segmentation and Target Segmentation have their own advantages and challenges. The key is for companies to carefully evaluate their goals, resources, and target market to determine the most effective segmentation strategy for their business. By understanding the differences between these two approaches, companies can develop a targeted marketing strategy that resonates with their customers and drives business success.

Comparisons may contain inaccurate information about people, places, or facts. Please report any issues.