Along with targeting the mass audience, businesses and companies employ various strategies to target the specific segment of the customer market. Today, we’ll discuss what is micro marketing; how it works, advantages, disadvantages, and examples.
What is Micro Marketing?
Micro marketing is a form of advertisement and market strategy that focuses on targeting a specific segment and particular niche of the customer market. Here, marketers directly advertise the products and services to the targeted customers.
In the micromarketing strategy, businesses and companies narrow down their search criteria and define their target customers based on geography, age, job title, gender, and other demographic elements. They develop and launch their campaign directed towards the specific customer market. Due to the lack of economies of scale, micromarketing is a bit costly approach due to customization.
Micromarketing is to some extent similar to target marketing. Here, marketers employ some specific strategies and techniques that would differentiate them from the targeted approach. Marketers need to find out the needs and wants of customers; it allows them to match the product with their needs and wishes. Customers would feel valued and important when you offer them what they want customized to their interests.
Businesses and companies employ a micromarketing strategy to target a particular market and expand their database of customers. They should narrow down their marketing efforts relevant to the required traits and characteristics of the customer market like their demographic, psychographic, or geographic.
How Micro Marketing Works
Micromarketing comprises various strategies and techniques. For instance, companies launch the micromarketing campaigns in various ways like offering special promotional offers to their loyal customers. Some of the main promotional micromarketing campaigns are as follows;
- Providing goods and services to the target customers of the particular career profession, designation, and job titles
- Advertising products and services to customers in the specific region and country
- Developing a customized product relevant to the particular needs and wishes of the customers
- Creating a special offer for the lost and unhappy customers
Due to the lack of economies of scale and no mass production, the cost of micromarketing is very high. Businesses and companies follow micromarketing strategy to develop a specific product for niche customers and spend more time with them. However, when you’re developing customized advertisements for small segments of customers rather than a few ads for the whole market, then it is a very costly approach. It is also a costly approach because you are not capable to reach the market size.
Advantages of Micro Marketing
Some of the main advantages of micro marketing are as follows;
In niche and micromarketing, you’re targeting a small segment of the customer market. It means that you don’t have to allocate a significant amount of resources to cater to the needs of the small market. Comparatively, its serving cost is much lower than serving the mass audience.
Micromarketing strategy allows marketers to plant the seeds and take advantage of the early adopters, and win the market share. When customers would find the same product or service whatever they’re looking for, they would spread the workout.
Micromarketing is a highly focused strategic approach. It focuses on putting all of its efforts into the particular segments of the customer market; comprehending their needs based on their ethnicity, interests, location, gender, age, and various other factors.
Disadvantages of Micro Marketing
Some of the main disadvantages of micro-marketing are as follows;
As we are aware of the fact that micromarketing doesn’t focus on the mass market, it targets the specific customer segment. The limited market exposure of your product offer would increase the probability of losing the opportunity of the wider market.
High Customer Acquisition Cost
Since you’re targeting a small segment of the customer market, the marketing and advertisement cost of micromarketing is also lower. Usually, the average customer acquisition cost would increase when more customers join your network and buy your products.
Time Consuming Approach
It is a form of marketing strategy that would take some time to spread your brand and product awareness. Businesses and companies need to allocate some time to develop, launch, and maintain the campaign and database of customers.
Examples of Micro Marketing
The energy drink brand Red Bull implements the micromarketing strategy. It focuses on the specific segment of the customer market of sports and young customers. However, the energy drink brand sponsor sports events like Formula One Racing, Windsurfing, Rock Climbing, Skateboarding, Cliff Diving, and others for the promotion of its products.
Proctor & Gamble
P&G is a great example of implementing the micromarketing strategy by targeting specifically African-American women. The company offered them particularly demanded products like hair conditioner, Natural Shampoo, Pantene Relaxed, and many others.
The taxi cab service providing company collected customer data from social media platforms. Uber focused on the transportation complications of different cities and offered them the solution, and expanded its market gradually. However, the company increased its database of customers through promotional campaigns and referral programs.
Marketers implement the micromarketing strategy in the real estate industry. They build houses of different price ranges by keeping in mind the needs, demands, and requirements of the house of the specific house. However, realtors show their clients different houses to their budget and requirements.
Conclusion: What is Micro Marketing? Pros & Cons, Examples
After an in-depth study of what is micro marketing; how it works, advantages, disadvantages, and examples; we have realized that micromarketing is a great strategy for the growth of your business. If you are developing a micromarketing strategy for your business, then you should keep in mind the abovementioned guidelines.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.