IB International Marketing Practice Exam

The market-coverage strategy that focuses on pursuing a large share of one or a few segments is known as concentrated marketing. This approach allows a business to tailor its marketing efforts to meet the specific needs of a narrowly defined target audience, maximizing resource efficiency. By concentrating on one or a few segments, a company can develop deep insights into those segments, create more personalized marketing campaigns, and potentially achieve a strong competitive advantage within that niche.

In contrast, differentiated marketing involves targeting multiple segments with various offers tailored to each, which requires a more extensive allocation of resources across a wider range of consumers. Micromarketing, also known as local marketing, involves targeting small segments or individual customers but is distinct from concentrated marketing in that it can focus on very specific micro-segments rather than a broader niche. Individual marketing, similar to micromarketing, aims to meet the specific preferences of individuals, which often requires significant customizations. Thus, concentrated marketing stands out by its intent to dominate fewer segments rather than spreading efforts across many.