An example of concentrated marketing is the marketing of Rolls Royce cars, which targets the premium car market segment. Another example is the 1950s marketing of Volkswagen cars in the United States, which targeted the economy car segment. Concentrated marketing typically requires limited resources and capability, as it rarely involves mass advertising.
For a company to succeed in concentrated marketing, it must have a better marketing program for its target market as compared to its competitors. This program must exploit the weaknesses of the firm's competitors and avoid their strengths. A company must steer away from large segments that have stiff competition and focus on finding a profitable segment that has been ignored by other companies. Concentrated marketing can curve a unique niche for a product, but it cannot maximize profits as it targets one segment.
A company can choose a differentiated marketing strategy to expand its market by targeting several segments. This is a viable option for companies that have different products, which appeal to different market segments. For example, an airline usually offers tickets in first class, business class and economy class, which appeals to all segments of travelers.
A company such as Coca-Cola initially used undifferentiated marketing to target entire markets with one product. Undifferentiated marketing typically relies on a simple message that appeals to many people.