The Internet allows you to analyze data more effectively than ever before. This allows for a more efficient use of measures including micromarketing than before. What are the characteristics of such campaigns? They reach a very precisely defined group of customers, and even individual people with the greatest potential.
Micromarketing, macromarketing, targeted marketing, niche marketing, market segmentation - these concepts often get mixed up in the consciousness of even people closely related to the industry. Below is a detailed explanation of the concepts - what is micromarketing and what does it look like on the examples?
What is micromarketing?
The idea of micro-marketing recognizes that the market consists in fact of many different, independently and sometimes overlapping micro-markets that exist side by side, defined by gender, age, lifestyle or place of residence of customers. To better understand what it is exactly, you can refer to related concepts. Marketing strategy based on similar principles include marketing targeting or marketing segmentation market.
At work "An Inquiry Into Micro Marketing Strategy as Implemented by the Coffee Industry: Is the Industry Fracturing the Market? " prepared in 1990 at the University of North Florida in the USA, the evolution of dominant marketing strategies over time is briefly described, along with the specific moment of the emergence of the micromarketing approach:
- 1900: Mass Marketing
- 1950: market segmentation
- 1980: micromarketing
"Micromarketing renounces mass marketing (...) aimed at the mythical" average "consumer. Instead, the company creates both a product and accompanying marketing tailored to the needs of micro-markets. " Explains the author of the work, Keith D. Edwards.
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Micromarketing in the examples
An example of what micro-marketing is often cited in the literature is the food industry, and more specifically of chain stores. In each of the several hundred there could be (and often are) exactly the same goods. You can also use a different, micro-marketing approach. Then, for example:
- the X chain store on the seaside promenade offers a lot of cold drinks, cosmetics and beach accessories with an appropriate margin;
- the discount chain X in a poor district has a full offer of the cheapest private label products and competes mainly with prices;
- The X chain store among villas and embassies also offers several Premium products (e.g. a wider selection of wines than anywhere else). Price is not the main criterion taken into account by those who shop.
On the other hand, an example of micro-marketing on the Internet can be a blogger's website, which offers old cars for up to PLN 5,000. target group these are only those people who cannot or do not want to spend more than a few thousand zlotys on a car. They are old-fashioned car enthusiasts who appreciate these models, and at the same time know their cars and avoid professional dealers. There are many open car classifieds exchanges with tens of thousands of listings. However, they will not interest those who know what they want and prefer to choose from dozens of offers for enthusiasts.
Advantages and disadvantages of micromarketing
Micromarketing in the example above shows that appropriate targeting will allow you to reach several or several hundred of the most prospective customers. However, it omits thousands of those who would not be interested in the product anyway. This allows you to focus on the most important factors for them, ignoring other factors, such as low price or a large selection. Reaching such a narrow group can be incomparably cheaper than a broad-based one communication strategy.
The disadvantage of micromarketing is that the campaign must be preceded by a fairly thorough data analysis. It depends on them whether the right group of clients will be selected. Lack of data, their imprecision or difficulties in obtaining them may cause the message to bypass those to which it should go.
Mikromarketing and macromarketing
Makromarketing is the name of the branch of knowledge that evaluates marketing in the context of a broader social panorama. This is explained by the examples of Jacek Kamiński at work "Macromarketing as part of the science of marketing":
"...the macro area is the implementation of public policy and stakeholder sanctions regarding marketing. (...) International business is not macromarketing, but only an extension of micromarketing to wider markets (extending the scope of the market does not make it possible to talk about macromarketing) ”.
Micromarketing is related to a few more terms. It often uses target marketing strategies, with one difference. In the case of target marketing, what counts is reaching a specific segment of customers in a given market. Micromarketing, on the other hand, focuses even on a single client. For this purpose, it uses advanced analytical tools and personalization, especially practical in digital reality.
ABOUTn-line micromarketing thanks to Big Data
From its very beginning, micro-marketing was based on reaching directly specific groups of recipients. In the past, it was quite difficult, because it required the use of many different techniques and tools, often difficult to access for the average recipient. The internet has simplified this task considerably. This is what micromarketing makes Google Ads whether Facebook ads can reach many different groups of customers who use one portal.
Big Data tools allow you to collect and analyze advanced customer data that was previously available only to the largest corporations investing millions in market research and sales support. Even they, however, were then not able to obtain data in real time and to get to know the habits of customers as in-depth as it is possible with, for example, the basic tools offered by social media. To obtain Big Data for micromarketing, we also use other analytical tools, such as Google Analitycs, keyword comparison engines or our own diagnostic instruments.