Growing with the market brings competitive advantage. A company may choose to operate in such a well-defined group of customers by targeting them. An organization that adopts a concentration strategy gains an advantage by being able to analyze the needs and wants of only one segment and then focusing all its efforts on that segment. b. large sales volumes cannot be generated. This enables such companies to invest their limited resources in a particular area and attain a strong market position without adopting mass distribution or advertising c. production costs may be higher than with other strategies. A disadvantage of the concentrated targeting strategy is that a. the firm's financial condition is tied to a single and specialized marketing mix. The selection would depend upon the organization and its market. In the context of strategies for selecting target markets, which of the following is a disadvantage of an undifferentiated targeting strategy? A company can choose a differentiated marketing strategy to expand its market by targeting several segments. It is difficult to tailor marketing mixes to the preferences of individual market segments. Key Points. Niche/ Concentrated marketing: Sometimes there could be very small but highly profitable market segment which cannot accommodate more than a few players. There is not one approach that is better than the others. Evaluate the advantages and disadvantages of adopting concentration strategies in consumer marketing . c. It often results in sterile, unimaginative product offerings that have little appeal to anyone. Advantages of each approach. As a starting point, the following table outlines the advantages of each approach. a. Evaluate the advantages and disadvantages of adopting concentration strategies in consumer marketing . This is a viable option for companies that have different products, which appeal to different market segments. For an undifferentiated strategy to be successful, the company's product must be readily available and affordable and must provide the same benefits to all consumers. Key Takeaways Key Points. b. An organization that adopts a concentration strategy gains an advantage by being able to analyze the needs and wants of only one segment and then focusing all its efforts on that segment. The idea is to gain expertise in meeting the highly specialized customer needs. Concentrated marketing can curve a unique niche for a product, but it cannot maximize profits as it targets one segment. It increases production and marketing costs of a firm. Concentrated marketing strategy is a method adopted by small companies with limited financial resources to develop and market a particular product targeting a particular market segment. For example, Sensodyne is a toothpaste for … Concentration on a Single Business Advantages Operational focus on a single familiar industry or market. An undifferentiated targeting strategy is used when a company decides to communicate the benefits of its product by sending the same promotional message to everyone. There are legitimate reasons for adopting each of the three broad target market strategy approaches.