A Guide to Micromarketing (With Advantages and Examples)
By Indeed Editorial Team
Published June 2, 2022
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
The goal of most companies is to create profit and expand their customer base. Companies may use micro or macro marketing strategies to achieve this goal. Understanding micromarketing allows marketing teams to learn how to create campaigns relevant to a particular niche.
In this article, we explain this marketing strategy, highlight the differences between micro and macromarketing, outline its advantages, discuss its disadvantages, provide steps you can follow to implement it, and describe an effective marketing sample.
What is micromarketing?
Micromarketing is an advertising and marketing strategy that creates awareness of a company's products to a specific niche or customer segment. The marketing team might choose specific criteria to determine their target audience. For instance, they may create advertisement and marketing content that caters to a unique problem that customers in a particular location have.
Also known as target marketing, this strategy is usually time-intensive as it involves customizing ads to fit customers' preferences. There are different ways that companies may implement this marketing strategy. Some companies may use this technique when advertising to a new market, unlike others who use it to offer new products to their existing market.
Micro vs macro marketing
Macro marketing is a strategy that creates advertising content to cater to a broad group of customers, unlike target marketing, which focuses on a smaller group. Target marketing aims to earn customer loyalty and develop relationships with them, while macro marketing aims to expand the company's network. Macro marketing is usually more expensive than target marketing because it creates advertisements for a larger audience. Both of these marketing strategies are crucial to expanding operations and increasing the productivity of any business.
Advantages of target marketing
Here are some advantages of implementing target marketing:
Concentrates on customers
Target marketing typically focuses on a segment of a company's customer base with customized advertisements. This strategy ensures that all campaigns and offers fit the goals of the direct customer and that customers enjoy quality service from the company. Target marketing helps the marketing team predict the client's needs and create structures to provide for these needs. It may also increase the company's return on investment (ROI) or profit by generating more sales.
Allows niche control
One advantage of properly implementing target marketing is that it allows the company to dominate the market. Any brand that can efficiently research its target market and provide curated products for them may improve its brand awareness and popularity. Customers may be more likely to buy products from this company than others in a similar industry. This typically allows the company to modify prices if necessary and increase its overall profitability.
Reduces marketing cost
Implementing target marketing is usually cost-effective for a company. The campaigns, advertisements, and engagement strategies focus on a smaller market so the marketing team can reduce its budget. If the company uses macro marketing strategies, it may require a larger marketing budget. A target marketing strategy also helps the marketing team develop a precise budget.
As it's customer-specific, the team can quickly identify which marketing tools are necessary for its target market. For instance, if the team is trying to publicize an advert that targets a specific age group, they may decide to publish those ads in newspapers that are popular among that age group instead of posting in all newspapers.
Helps companies test new products
It also allows them to test new campaigns and check audience response. This marketing strategy allows the team to use the feedback and complaints noted in one market segment to improve their campaigns in other segments. If a company plans to launch a new product on a large scale, it can anticipate the profitability of those products by releasing them to only a segment of the market.
The marketing team can note their responses and feedback and use it to improve the product before releasing it to other customers. Target marketing also allows small businesses to run ads, promote brand awareness, and publicize their products on a smaller scale.
Disadvantages of target marketing
Here are some potential disadvantages of target marketing:
Research and time
Target marketing requires time and extensive research. Because it focuses on a specific group of customers, it's essential that the marketing team fully understands their purchasing motivations. The marketing team may conduct surveys, create specific buyer personas, and use market research. They may also study market trends and purchasing patterns of the target customers. Maintaining this customer base's interest and brand loyalty might also require time, consistency, and patience. The target marketing strategy focuses on building relationships with customers, and it may take a longer time to yield results.
Related: A Guide To Marketing As a Career
High cost of acquisition
The acquisition cost involves the total expense a business may incur trying to gain a new client. This figure evaluates the cost of marketing strategies, advertisements, and team management and divides this number by the number of customers the company acquires. Target marketing involves a budget that highlights each customer's specific needs. As the target audience involves fewer customers, the average cost of advertising and gaining a new customer might increase. An increase in the cost of acquisition may also translate into higher risks for the company's ROI.
Wastage of resources
The limited nature of target marketing increases the chances of wasting resources. Due to the customized nature of these strategies, if the marketing team makes an error in predicting customer preferences, the entire campaign may fail. Target marketing may also create the possibility of the company missing or overlooking profitable market segments while focusing its resources on others. It may also lead to the company having a small, limited audience with minimal growth or increase.
How to implement target marketing
Here are some steps you can follow to implement market targeting:
1. Create a buyer persona
A buyer persona is an in-depth description of an individual representing the target market. This persona may have a sample name, interest, and goal that represents a larger audience. Creating buyer personas allows you to understand the behavioural pattern of an average customer in the target market, and it helps marketing teams develop suitable campaigns for their profiles. Marketing teams can use analytic tools which interpret data patterns, surveys, and interviews to create buyer personas. Using buyer personas increases the company's chances of a successful campaign.
2. Evaluate suitable campaigning strategies
You can use different platforms and channels to increase customer awareness of the product. These channels may be online or offline, including social media posts, newspapers, and radio stations. Choose platforms relevant to the target market to save costs and make the advertisements effective. Buyer personas provide an idea of what platform is most suitable for the target audience, depending on their age, demographic, and income.
3. Develop the message
Defining the campaign's goals can influence the message and content of advertisement and marketing strategies. The marketing team can brainstorm, share, and criticize ideas. They may also work with other professionals such as content creators to ensure that the message is relevant and helpful in improving the company's brand image. The team may also interview existing customers, determine why they trust the brand and use their reviews to create campaigns.
4. Execute marketing strategies
After completing your research and developing the marketing message, you can execute it. The marketing team may use the budget to guide the execution of these strategies across various platforms. They can also track the performance and results of these ads from the feedback from the audience. Some marketing teams use multiple advertising strategies to test their comparative value and performance.
Example of target marketing
Here is an example of the implementation of target marketing:
Mountain company produces sporting footwear and equipment, and its target audience is hikers and mountain climbers in a specific province. Before creating a campaign for them, the marketing team creates a buyer persona that represents their interests. These individuals need appropriate hiking boots, sleeping bags, and trekking poles. Most of them are young and athletically inclined. Using the buyer persona, the marketing team determines that these customers mainly use social media sites and blogs that publish fitness and health-related content. The team uses these channels to sponsor and create awareness of their product.
They may also sponsor sporting events that feature hikers and rock climbers to improve their customer engagement. The company also ensures that its campaigns and advertisements provide relevant solutions for its target audience. Mountain company may provide comfortable hiking boots and walking shoes that reduce or prevent foot blisters for hikers. The marketing team creates ads that highlight the issues that hikers' issues with foot aches and injuries, then explain how their product solves this problem. A successful campaign usually ensures that the company's popularity and sales increase.
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