What is Micro Marketing?
Micro marketing is that type of marketing strategy which tends to target a specific group of customers within a niche market. The approach to micro marketing strategy is somewhat the same that is used in target marketing. This marketing strategy makes the marketer consider specific attributes that will set apart the targeted market segment.
This form of marketing calls the marketer to determine the specific needs likes and dislikes. In this way, matching consumers with the product being offered becomes a lot easier. This approach is most often very successful as the customers develop a sense of being important to the marketer and directs their efforts towards connected with the product more through a personal level and less from a general level.
Many small businesses and companies that use micro marketing strategy establish and expand their client base within a specified geographical region. Companies can narrowly define its target audience through different characteristics like job title or ZIP code and can tailor their marketing efforts accordingly. This approach to market products can be more expensive because of customization and lack of economy of scale.
Definition of Micro Marketing
Micro Marketing can be defined as an activity used to market products or services directly to targeted groups of individuals based on specific information that has been collected about them. The efforts are designed to meet the demands of a small section of people in the market.
Examples of Micro Marketing
A good example of micro marketing can be found in the real estate industry. Any local realtor who develops its reputation in dealing with properties in a specific price range also understands the requirements and demands of those who can afford to buy property within that price range.
From this point, the realtor will consider the specific needs and demands of the clients within a larger demographic profile and will invest all efforts to find a property which suits their as many requirements as possible while continuously focusing on the homes that clients can afford.
Examples of some companies that use micromarketing strategies in their business and were successful include Proctor and Gamble and Uber. Proctor and Gamble underwent a marketing campaign in which the target market was African-American women for the launching of Pantene Relaxed & Natural shampoo and conditioner product line.
On the other side, through obtaining data from social platforms, Uber managed to understand the specific issues of transportation in the cities it planned to expand. The result of this was an increase in the client’s base of the company through referral benefits and promotions.
Advantages and Disadvantages of Micro Marketing
- Highly targeted: Micromarketing and concentrated marketing allow companies to become granular. All efforts are directed towards the specific market segment and understanding their needs and demands based on their gender, location, interest, ethnicity, etc.
- Growth is user-generated: Micro marketing strategies tend to sow seeds in niche areas and allows early adopters to handle the market. When people will find something they want, the word will spread out and about automatically.
- Cost effective: Micro marketing and Niche marketing also comes with micro-budgets. This does not mean that this marketing strategy does not cost money. Comparing marketing efforts invested in a small segment of people to that of a larger audience, the cost associated with micro marketing campaigns are relatively lesser.
- Time consuming: This type of marketing strategy take some time to develop and perhaps even more time to spread. Companies should be prepared to invest a good amount of time for developing and maintaining a customer base.
- Increased cost per acquisition: Though the cost of conducting this marketing effort is relatively lower, the target segment also includes fewer people. This can result in making the average cost increase in case a new customer gets in.
- Probability of missing the target: Micro marketing campaigns is a targeted campaign and does not focus on a wide range of audience. This can result in limited exposure and there are chances to miss other target segments.
From all marketing approaches, micro marketing strategy is the most personal one. Going beyond the tight focus of the niche marketing, this approach determines the wants of individual customers within a specified group of people. Companies are using this technique to develop stronger connections with their customers and expand their client base.