What is a Concentric Circle?
- Research Topics:
- Data Analysis
- Content Type:
- Glossary
Concentric Circle Definition
The shape of a geometric study area, sometimes referred to as a ring.
A concentric circle analyzes and segments a target audience or market based on layers of proximity and relevance. This technique categorizes potential customers or stakeholders into circles, with the inner circle representing those closest to the item and outer circles representing those who are progressively less connected. This method helps marketing professionals and other entities in understanding the varying degrees of influence and engagement that different groups have with a product or service. Concentric circle analysis focuses on audience diversity and level of engagement. Rather than using a one-size-fits-all approach, marketing professionals can work with audience segments.
Who uses concentric circles?
Marketing teams, product managers and market researchers use concentric circle analysis to determine where their audiences fall in the circle. This insight enhances their communication, messaging and engagement efforts to each circle's unique characteristics and needs.
Why should I care about concentric circles?
Concentric circle analysis identifies the varied levels of connection and influence that different segments have. Insights resulting from these studies allow companies to prioritize resources and efforts accordingly.