All businesses can benefit from micromarketing. It’s a specific marketing strategy to help niche businesses find and market to the right demographic. But it’s not without its challenges.
In this article, you’ll learn what micromarketing is, read about real products and companies who have used it, and understand the main advantages and disadvantages of using micro marketing.
What is Micromarketing?
Micromarketing is a type of marketing strategy. Similarly to target marketing or market segmentation, the point of micromarketing is to collect specific information from segmented groups to use for marketing campaigns. This way, the marketer or company can cater to a specific group of people rather than marketing to the masses.
Customers prefer to buy a product that they feel was developed to help their specific problem. In doing so, the customer builds a personal relationship with the product and/or company that is offering the product. It may mean the customer is more likely to purchase from the company again because trust between the two has developed.
An example of proper micromarketing
Let’s say your shoes are always causing foot pain. But this is nothing new — every pair you buy never seems to fit just right. You often get blisters from them, and the pain persists even when you’ve taken off the shoes. And since you’re standing nine hours a day for your job, you always dread having to stuff your feet into these painful shoes every day.
Now let’s imagine you see the shoes. They’re specifically designed to provide extra space for the width of your foot, so they fit snuggly but not painfully. But most importantly, the shoes are made with materials designed to prevent chafing, blisters, and sores. It’s made for someone like you, a person who spends most of the day on your feet.
Compared to every other brand that markets to the masses, this product feels like it was designed with you in mind. Aren’t you more likely to pick up that pair than any other?
This is how companies use micromarketing. They would learn more about the specific demographic (you with foot pain) and highlight the benefit of the products that most pertain to your issues.
Examples of micromarketing
Shea Moisture is a hair care company offering sulfate-free and silicone-free products to men and women with curly hair. By focusing on this specific demographic of people, the company has clearly ruled out straight-haired people using the products.
The product is supposed to add moisture, protein, and stimulate curls. Despite many companies now offering similar products, Shea Moisture is often considered the grandmother of the curly hair movement. As such, it’s typically the top company recommended by curly-haired people.
A product example of micromarketing is the 3Dio FS binaural microphone. It’s a microphone with ears molded on the sides. It’s popular among ASMR (autonomous sensory meridian response) content creators. These groups of creators use the microphone to enact a tingling sensation in the watcher. It’s such an odd microphone that you won’t see podcast creators or other video creators using it. It’s a niche product designed for a small (but thriving) community of people.
If either of these two had developed these products and appealed to the masses, it likely would have failed. The people who needed them would have been drowned out by the many who didn’t. This is why micromarketing can be crucial, but it’s not without its cons.
The pros and cons of micromarketing
Micromarketing is often a smart decision for small and large corporations, but it does have its advantages and disadvantages.
- Targeted approach. With it, you can target products to specific demographics, allowing the product to appeal to this group over others. It also allows the marketer to truly understand the benefits of the product and offer them in a way that the demographic will want.
- Perfect for niche products. Marketers and companies offering a niche product will have an easier time selling products to a certain group. Not only that, but it’s more likely that these niche customers will spread the word to other contacts in the same industry.
- Money saver. The budgets for targeting a smaller group is more cost-effective than marketing to the masses.
- Not quick. Developing marketing campaigns for a specific group requires hefty data. This may mean doing surveys, interviewing the select market, or more. As such, this will be a time-consuming venture. Although the results may be worth the time, it’s not a small undertaking. Smaller businesses may struggle to introduce micromarketing to their campaigns.
- Expensive cost acquisition. The budget for marketing to smaller demographics is lower, but because it’s typically a niche market with fewer people in the industry, it can be more expensive to get those initial customers.
- Potential for failure. Since this campaign focuses on small groups of individuals, the marketer could miss the mark. If it does, there’s no one for it to fall back on. As such, focusing so heavily on a small group and failing can be disastrous for the company.
Micromarketing is a crucial marketing strategy that all businesses can use to their advantage. By learning about niche demographics problems, companies can effectively cater to these smaller groups of people. While it can help a marketing campaign be more successful, it is also a time-consuming endeavor and more expensive than marketing to the masses.
For this reason, it may be more difficult for smaller companies to use micromarketing. Smaller companies have smaller budgets. They also may not have the time to extensively research an audience because the need for sales is high. For that reason, it’s often bigger companies that later begin to provide niche products and services after first establishing themselves in an industry.
Regardless, customers ultimately appreciate a company who seems to offer a product specifically for them. It encourages a connection between the company and the customer. If the customer likes the product (and thus the company), micromarketing can build trust. In doing so, it may be easier to get repeat business, therefore lowering cost acquisition.