Centralized Marketing Strategy: 5 Things Marketers Must Know

What is Centralized Marketing Strategy? What are 5 things every marketers need to know about this marketing strategy? Let’s find out in this article with CleverAds.

1. Concept of centralized marketing strategy

A centralized marketing strategy (also known as Centralized marketing strategy) is one in which an enterprise will devote all its resources to conquer a single market segment or a small part of the market that the business considers the most important.

This marketing strategy aims to establish a foothold at the fastest speed and create a firm advantage and better influence in that market segment for the business.

In contrast to the centralized marketing strategy, we have a decentralized marketing strategy.

2. Advantages and disadvantages of centralized marketing strategy

Like “two sides of the same coin”, any strategy has advantages and disadvantages. By analyzing the characteristics of a centralized marketing strategy, businesses can take full advantage of the benefits and limit the disadvantages to developing a successful plan.

2.1. Advantage

A centralized marketing strategy helps businesses effortlessly occupy a strong position in the market by specializing resources in the target market segment. It is also the most prominent advantage of centralized marketing.

Besides, the Marketing strategy also brings:

Gain product exclusivity through detailed research and understanding of customer needs and wants.
Promote product strengths for companies with skills and specialization in product manufacturing.
Build a brand reputation.
Leading high profits thanks to the focus on promoting the capacity and strengths of the business on the defined goals.
Maximize the advantages of production, distribution and business promotion activities by specializing in products and markets.
The monopoly will cause barriers to the entry and competition of other brands.
Build good relationships with customers by responding well and quickly to customer needs.

2.2. Weakness

Besides the advantages, some risks that businesses may face when using a concerted marketing strategy are:
Changing consumer demand leads to unexpected changes in market demand.
The market area has many potentials to attract the “big guys” using their resources to participate in market competition.
The lifespan of the market segment is time-based.
Enterprises are completely dependent on the market
Competition in product prices and production costs when the market has many competitors
It is necessary to develop the best development and specialized market plan

3. What kind of business is the concerted marketing strategy suitable for?

From the analysis of the characteristics of the centralized marketing strategy, this type of marketing strategy is most suitable for small and medium businesses.

For small and medium enterprises, human resources and financial potential are limited. Using a centralized marketing strategy will help businesses quickly stand in the market.

At the same time reduce fierce competition from competitors. Resources will also be effectively allocated to avoid spreading to non-potential markets, causing budget waste.

In addition, businesses to cover the market in the new market entry stage can also use this strategy. Using a centralized marketing strategy will help companies determine the potential and suitability of their needs. Thereby helping to optimize the investment budget.

4. 7 steps to build a centralized marketing strategy

Step 1: Conduct market research

Businesses need to research to determine the niche and segment they target. Important factors include:

The financial and structural attractiveness of the segment.
The company’s goals.
Capabilities.
Resources to market the segment.

Step 2: Identify target customers

Customer characteristics must be combined with market data to identify the right target customers.

Step 3: Identify the platform customers frequently use

From researching customers and finding the most common forms of customers to access information to choose as the primary marketing channel.

Step 4: Develop a marketing plan

Create a blueprint for the selected target audience and market segment. Campaigns and message content need to be consistent throughout to reach customers in the best way.

Step 5: Plan a centralized marketing strategy

Build a complete detailed plan. Promote marketing into the most effective advertising channels to reach target customers fastest. We can use many different marketing methods to achieve the best effect.

Step 6: Implement and monitor the strategy

When implementing, we need to monitor and analyze its results constantly. This helps us promptly fix the gaps in the marketing campaign and adjust it in the right direction.

Step 7: Evaluate the effectiveness

5. Centralized Marketing Strategy Example

Rolls-Royce Motor Cars Limited

This is a British luxury car manufacturer that exclusively produces Rolls-Royce cars. Renowned for its quality and high prices, the company’s target audience segment is people with at least $30 million in liquid assets. When buying a Rolls-Royce car, customers will receive a letter signed by the company.

Munchkin

This is a company that manufactures products for babies and toddlers founded in 1991.

Munchkin used a centralized marketing strategy to target parents of infants and toddlers.

Posting articles on how to raise children on her blog attracts customers’ attention. In addition, the company also cooperates with celebrities who are raising children to introduce and promote products widely to the public.

6. Conclusion

A centralized marketing strategy will help businesses narrow their focus to a target audience segment. Create the best plan to reach customers and win loyalty, thereby retaining customers and creating a strong position in the industry. Hopefully, the article will help readers to have a broader view of the Centralized Marketing Strategy.