Hi There! I’m going to tell you everything about Micro-marketing, it’s types, examples, advantages and disadvantages and everything related to Micromarketing.
Contents
What is Micro-Marketing?
The marketing strategy in which we give our advertising efforts on a small group of tightly targeted consumers is known as Micro-Marketing.
For example, the market can be grouped into small groups based on a commitment to a product class or readiness to purchase a given brand.
Micro-marketing requires a company to narrowly define an audience by a specific characteristic, such as ZIP code or job title, and tailor campaigns for that particular segment.
Marketing is a crucial element for businesses operating in a competitive environment. Marketing is a strategy used by companies to increase their brand awareness, sales and, more importantly, profits.
What are the types of Micro-marketing :
- 1). Local
- 2). Relationships
- 3). Job Title
- 4). Industry
- 5). Size
- 5). Customer Needs
- 6). Brand Loyalty
- 7). Customer Recovery
- 8). Price Sensitivity
1. Local
A business which is situated in a particular location/area will use local micromarketing in order to market to people in a particular city or neighborhood.
2. Relationships
Relationships Marking is the marketing in which you market your products/services to the people you know.
3. Job Title
We can target a specific job title such as CIO or CMO and then we can do marketing on our targeted audience.
4. Industry
It’s about selling products/services to businesses in a particular sector. For example, an insurance company that designs a product for commercial fishing boats.
5. Size
Targeting firms of a particular format. For example, a large business software package may only be affordable to a few hundred firms in each region.
6. Customer Needs
Offering products and services to customers with unique needs. For example, an insurance product for extreme sports enthusiasts.
7. Brand Loyalty
In Brand Loyalty, we target the loyal fans of a particular brand, product, or service with exclusive offers.
7. Customer Recovery
In Customer Recovery, we attempt to win back unhappy or lost customers with special offers.
8. Price Sensitivity
Targeting customers who are usually insensitive or sensitive to price. For example, a cutting edge solar panel system may seek out customers with an unusual enthusiasm for solar panels and a healthy budget.
What are the Advantages of Micro-Marketing?
Like every marketing opportunity, there are strengths and weaknesses to the approach. Ultimately it depends on your business model. Here are some ways you can use it to your advantage:
- Highly Targeted – In a micro-marketing campaign, you are getting granular. You are drilling down into the demographics to select a specific segment of the population, based on ethnicity, location, sex, interests, and even favorite foods.
- Cost-Effective – Micro-marketing campaigns usually come with micro-budgets. That’s not to say they don’t cost a lot of money, but in comparison to a nationwide, hit ‘em with everything you’ve got approach, it’s way less to shell out.
- User-Generated Growth – Micro-marketing campaigns plant seeds in niche areas and let the early adopters do the marketing. When people find something they love, they tell others about it, and it spreads.
What are the Disadvantages of Micro-Marketing?
Now you know the benefits. But about the potential downsides? Here are the top three:
- Higher Cost Per Acquisition. While you are allocation much less of your advertising budget to the campaign, you are also targeting much fewer people than a macro-marketing campaign. It, in turn, can cause the average cost of getting a new customer to go up.
- Possibility of Missing the Target. As mentioned earlier, the shotgun approach of a micro-campaign is going to mean you will hit far more people than with a sniper’s bullet. Micro-marketing campaigns are super-targeted…and that means it can be harder to score a bullseye.
- Time-Consuming. Micro-marketing campaigns take time to develop, and even more, time to plant roots and spread beyond the initial target. Be prepared to spend more time developing and maintaining a loyal customer base. But mighty oaks from little acorns grow.
Mirco Marketing vs Macro Marketing
| 1). Process of marketing a product to a specific segment of society, population or culture.
2). In this strategy corporations narrowly define an audience and advertising efforts are strongly focused on that targeted small segment |
1). It focuses on the majority of customers rather than an individual.
2). It focuses on how to reach the mass market. |
How Uber Used Micro-Marketing to Achieve Unprecedented Growth
Chances are, you’ve not only heard of Uber but have used the service frequently.
You may think that Uber is a relatively new company that experienced rapid growth in record time, but that’s not entirely accurate. Founded in 2009 by Travis Kalanick, it did not start out as a “taxis for all” business model. Quite the opposite.
But by using highly-targeted micro-marketing campaigns in just one market – San Francisco—it grew quickly by word of mouth.
“In the beginning, it was a lifestyle company. You push a button and a black car comes up,” said Kalanick “It was a baller move to get a black car to arrive in 8 minutes.”
For a while, that was Uber. An app-based black car limo service that solved a genuine problem in San Francisco. Namely, poor cab infrastructure, dirty cabs, unreliable cabs, not accepting credit cards, and drivers refusing to go to certain parts of town.
Now, for a higher premium, you could travel around San Francisco like a celebrity. The ease of use, the app that tracked the driver, and the safety of knowing the driver and his/her rating spread around the bay area like wildfire.
It spread from city to city, and state to state, much like a virus. And as it spread, the micro-marketing campaign focused on another city, offering free rides or ride credits, and expanding the buzz.
Then, additional services were added, like UberX and Uber SUV. Now there’s also Uber Eats, which was again grown by micro-marketing campaigns in key locations.
Uber is not a multi-billion company—not bad for less than 10 years on the market—and a great deal of its success can be attributed to a highly-targeted, laser-focused micro-marketing strategy.
Think small, get the early adopters, and let them spread the word for you.
Want to know more about How Micro-Marketing can get big results for your business? Check out this blog which might help you. How Micro-Marketing can get big results for your business?
I hope you can able to understand what micro-marketing is! If you have any kind of questions or suggestions, feel free to comment down below or get in touch with me. I’ll love to help you out.
Thank You 🙂