To address the hyper-competitive nature of today’s marketplace, businesses need to think in more detail. This is where Micro Marketing comes into play. This type of marketing strategy is specifically designed to address a very attractive market to a wider audience.
A strong micromarketing strategy can help you target a specific group of people to market a product or service. In this article, we provide examples of successful micromarketing strategies and how to do it.
What is Micro Marketing?
Micromarketing is a type of marketing that targets a small group of customers. These are highly targeted customers who have very specific characteristics such as location, age, interests, household income, shopping behaviors or occupation. In fact, micromarketing targets specific people rather than general groups.
For example, a marketing agency may generally market its products or services to small to medium-sized businesses. However, they may find that the digital advertising services they offer are also of interest to small retailers. They may decide to develop a micromarketing strategy that targets the owners of smaller retail stores.
Why Businesses Use MicroMarketing
Micromarketing is used by businesses large and small. For example, this could be a great way for a large business to introduce new products or services, or help small businesses gain a good reputation through local advertising.
The main reason why businesses use micromarketing is to find a very specific segment of the population that can sell their product or service to them. If a company can match a specific audience with the right product or service, it can generate a higher ROI (investment return) than a wide network. Many businesses do this to test new offers as well as promotional ideas.
For example, if you look at a large company like Coca-Cola, there is only a small and specific group of people in the brand’s audience who drink products such as diet drinks with extra caffeine and vanilla flavor. Coca-Cola has probably implemented a micromarketing strategy to determine if there is interest in that particular drink.
Types of micromarketing
- Individual Marketing
Micromarketing or micromarketing is based on individual marketing. This marketing changes the products and marketing plans according to the needs and desires of the customers.
Individual marketing is also known as mass customization or one-to-one marketing. Mass customization is the process by which companies interact with individual customers to design products and services tailored to individual needs.
- Local Marketing
Local Marketing changes its brands and advertisements based on the needs and wants of local customers, such as specific neighborhoods, cities, and stores.
For example, a food company helps many supermarket chains identify their favorite types of milk in their area. This helps optimize milk sales in low-income, middle-income and high-income stores and communities with different cultures.
Of course, local marketing, in addition to its advantages, also has disadvantages. One of these disadvantages is that local marketing may have high marketing and production costs. You may also have problems with logistics. Because companies are trying to meet the different needs of local and regional markets.
The applications of micro-marketing in businesses are as follows:
- Micro-marketing is used in both large and small businesses. In fact, micromarketing is used in large businesses to introduce new products or services. Micromarketing will actually create a good position among customers in small businesses through local advertising.
- Another important application of micromarketing in businesses is to reach a specific segment of customers where you can sell your product or service to them. If a company can match a specific audience with the right product or service, it can generate a higher return on investment (ROI) than large networks; This will be the success of the business.
- A micromarketing strategy will align sales and marketing activities. This alignment becomes the most important solution for successful customer attraction.
- Micromarketing is the most effective strategy to meet your needs. In this strategy, you only need to identify your potential customers, and other than that, it is just a waste of time and energy.
Software for Micro Marketing (CRM)
CRM software is one of the best tools that plays a very important role in the implementation of micro-marketing projects both locally and individually. Using this software, you can get complete information about the customers of a region and their needs.
Also get information about product purchasing history in different areas, providing customized customer service, area covered by each marketer, profit and sales of a product in a specific area, and CR using CRM software.
Benefits of Micro Marketing
Micro-marketing, like other marketing, has advantages that we will explain below.
- Micro-marketing tries to identify a specific goal and invest in it. These goals can be identified by gender, geographical location, personal tastes and ethnicity. So in general, marketing efforts are targeted. In this method, according to items such as age or job title, customers are well identified. Having this information, their general needs are also better identified.
- By using micro-marketing, you will attract a specific group of customers. Once you have a good target market, these customers will become regular customers. In fact, because of their satisfaction with the shopping experience of your products, they will introduce you to others and in a short time, your target market will grow automatically.
- Micro-marketing is more cost-effective than macro-marketing. It is enough to have a comparison between your specific and limited target market and the general target market. In general, micro-marketing is more cost-effective in increasing return on investment than in a nationwide marketing activity; Because it will target fewer people and of course it will cost less to target them.
Disadvantages of micro marketing
Micro-marketing, like any other marketing strategy, has its drawbacks, including:
- Micro-marketing or micro-marketing requires a lot of time to define as well as develop a marketing strategy.
- While the cost of implementing a micro-marketing strategy is more cost-effective than macro-marketing; But in micro-marketing, there is a small and specific group that you will face an average cost increase for each new customer arrival.
- An important disadvantage of micromarketing is how much time commitment you will have. Because you are targeting a very specific group of customers, you need to know them well.
An example of micro marketing
Micro-marketing is successful most of the time. It instills a special sense of value in customers when it takes time, energy and money to identify customers, their needs and interests. After seeing your efforts to satisfy them, they try to respond to this value and respect by buying the products and using the services provided.
For the first time, Uber Company realized this need in the United States, and it spread significantly day by day all over the world, especially in our country.
Uber has become more and more popular among the people due to its benefits such as personal award prizes or discount codes.
Procter & Gamble (PG) and Uber are some of the companies that have had successful micro-marketing campaigns.
When P&G introduced its Pantene shampoo and conditioner as Relaxed & Natural, it launched and launched a unique marketing campaign for African women. As Uber sought to expand its geographic reach, it used large amounts of data from social media platforms to learn more about specific transportation problems in each city it intended to transfer. The result was the growth of the company’s customer base through personal advertising and referral benefits.
Micro-marketing is one of the most important activities in the field of marketing. This type of marketing is an approach to advertising that targets a specific group of people in a particular market. In fact, this marketing method is considered to be the most personal marketing strategy. The main purpose of micro-marketing is to emphasize and focus on a specific and distinct goal.
In general, micro-marketing is a costly project compared to macro-marketing, but in the end, it will bring good final profits.
In general, the definition of micromarketing or micro-marketing and its application is summarized in the fact that you should constantly try to identify the interests of your target market.
In this way, both the customer will get the products and services you want and you will achieve the desired profit by selling your brand. In this article, we talk about micro-marketing, its advantages, disadvantages and its application in various businesses. We have also introduced software that can be very useful for micro-marketing.