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What Is Micro Marketing?

What Is Micro Marketing?
Bitrix24 Team
October 19, 2021
Last updated: October 23, 2021


Increasingly, micro marketing is becoming more and more essential than basic operational operations as a tool in conducting business. Not everyone can teach marketing newbies about social media's value by simply explaining what it is. No longer simply a marketing slogan, the term "think big, spend big" has become a way of life. In today's world, when one-to-one marketing methods are the norm rather than the exception, it's almost difficult to please every client personally.


Many people, especially business owners and entrepreneurs, might question what micromarketing is. Simply, if to define micromarketing, it can be put in the following way: when businesses target a certain geographic, demographic, psychographic, or behavioral market group, they use a type of marketing called segmentation.


To begin with, however, it’s important to note that distribution, selling, and brand management have all changed over the last century in terms of marketing's focus. Compared to previous years, marketing's development is being solidified by the internet and the management of individual connections with clients. Marketing theory has pushed for ever-smaller groups of customers being regarded as market objectives from mass marketing's peak in the 1950s through the decades to the twenty-first century. Market segmentation was the first reaction to better fulfill consumer requirements. To satisfy the varying demands of their consumers, companies released an expanding number of product variations.


In the media, there was an increase in the number of niche publications, as opposed to mass-market publications, and the digitization of technology-aided projects or devices happened as well, which can be seen from an explosion in the number of radio and television stations. The revolution in information technology has resulted in the most rapid transformation for micro marketing. Over 200 million individuals at home and at work may interact electronically for free using universal, open standards by 2001, less than a decade after the internet's inception. This represents a massive shift in business and society.


Segmentation is a key component of micro marketing. It's a way to target different markets. When it comes to market segmentation, micro marketing is a step below segmentation: companies may use no segmentation (mass marketing), full segmentation (micro marketing), or anything in between. Even while segment and specialty marketers cater their offerings and marketing programs to different market groups, they do not customize their offers to each individual client. Narrow-targeted marketing is a middle ground between mass- and micro-marketing. In contrast to mass marketing, which does not consider segmentation at all, the goal of micro marketing is to come as near as possible to the segment of one. Hence, micro marketing uses the technique of customizing goods and marketing programs to fit the preferences of particular people and regions.


There are many types of micro marketing since it is a specific target marketing strategy. Local marketing involves customizing marketing strategies to meet the requirements and desires of local consumer groups, such as towns, neighborhoods, or even particular shops. Individual marketing involves marketing to individuals. According to some, personalization marketing is the pinnacle of market segmentation. According to the individual marketing theory, the key to successful marketing is to utilize interactive communications to build personal connections with customers by offering better value via customized goods and services. Also known as 'customized marketing,' this kind of advertising targets specific markets, such as a single person.


The impact of service marketing on product marketing has been less apparent. It has changed the way goods marketers think about their companies and consumers because of the focus on client happiness and long-term relationships in services marketing. It’s significant to acknowledge that customer expectations have skyrocketed in the technology era. Today's new customer has more complex requirements, and they are looking for products and services that are of better quality, competitively priced, and delivered with greater speed. The shift towards individual marketing parallels the trend in customer self-marketing. Customer decision-making is becoming increasingly decentralized as a result of this shift. This supports the idea put forward by many experts, which calls for more participatory conversation rather than just a monologue in advertising. More and more consumers are becoming self-reliant as a result of increased education.

Micro Marketing Examples


Nowadays, there are many companies that use micro marketing. It’s best to comprehend the core ideas of micromarketing through examples. As a micromarketing example, let’s investigate 'Dell.' Dell is a computer manufacturer. Dell pioneered the direct business model, allowing consumers to build their own computers online. Customization in Dell's instance is done both via media and through the device itself. Dell's computers aren't very noteworthy, and the company has long competed against well-known names like IBM, COMPAQ, and Hewlett-Packard. Dell cuts away the conventional dealer route and sells straight to the consumer. As a result, the business saves money by not paying the reseller's markup and by not keeping huge inventories of completed products on hand.


In other words, Dell exclusively manufactures computers to the exact requirements of its clients, such as how much RAM memory they need or what kind of monitor or modem or CD drive they want. The business is a pioneer in supply chain management because it collaborates with suppliers to provide the appropriate components for its client’s requirements. One-to-one conversations would be impractical for companies with millions of consumers due to the high expense. Segmentation is still essential even for companies who are seeking mass customization. Instead of trying to group customers based on their comparable requirements, the segmentation should be based on how much the client is worth to the company throughout their whole lifespan. Dell operates precisely as described above. Customers are divided into groups based on how profitable each group is to the business.


When it comes to customizing its goods, Motorola makes use of today's technologies. Motorola works with clients to develop bespoke pagers that meet their needs. By visiting a prospective customer and using the customer's own requirements, the Motorola pager sales team can create the best-fitting pager system for each client. The salesman then uses a laptop computer to finalize the specs before sending them to the Motorola plant via modem. Motorola can produce over 20 million different pager models based on a customer's specifications. Amazingly, the facility can complete the first bespoke pager order from any client in only two hours. This level of personalization combined with the accelerated delivery creates an incredibly well-needed deep bond between the business and the customers.

Pros of Micro Marketing


Micromarketing is an effort to target marketing techniques to ever-smaller segments of consumers. In contrast, for example, mass marketing focuses on well-known companies. These tend to be popular among a wide range of people. Messages that are basic and undifferentiated are used to market them via mass distribution channels. Promoting is distributed equally and no attempt is made to tailor the product to meet the specific requirements of individual customers or the locations in which they reside. On the other hand, micromarketing has a distinct goal in mind.


Micromarketing, which is more concerned with customer lifetime value than with market share, uses profiling techniques to create a detailed portrait of the product's intended market. When it comes to marketing, micro-targeting takes into account the many factors that influence different segments of the population to purchase the brand's various products and via various distribution channels. Dependence is placed up on mediums such as direct mail, telephone, the Internet, and door-to-door delivery — all of which may be highly targeted. Profiling, mapping, scoring, and grouping are quantitative methods used to identify and effectively reach target audiences.


A cutting-edge new innovation: More variations meant greater production costs and spiraling inventory levels, resulting in poorer profitability and reduced asset turnover as a result of market segmentation. In recent years, new technology like computers, databases, robotic manufacturing, e-mail, and fax have all emerged, but the trend toward more personalization goes deeper than that. Reduced technology prices have also played a significant role in this evolution.


Customizing goods used to be prohibitively expensive for most businesses, even when they knew about their customers' specific needs and wants. As a result of falling prices, several sectors have standardized on a wide range of technologies that allow businesses to engage with their customers on a one-to-one, efficient, and effective basis. So, due to digitization and networks, mass customization is now accessible to the general public/businesses at a low cost yet it provides high-quality engagement with the most loyal customers. This helps to build trusted, long-term relationships between customers and businesses.

Cons of Micro Marketing


One can point out that recently customers are becoming more isolated and self-reliant due to the increasing fragmentation and segmentation of the market. So, because of the extreme segmentation of the market, customers are no longer relying on businesses and becoming self-isolated driven by the idea to create/customize their own products. This reinforces a well-known theory of self-marketing.


While age, gender, economic background, and geographic location have traditionally been used to segment society for marketing reasons, these criteria are no longer as accurate as they once were, and marketing strategies must now be focused on highly precise and targeted interest groups instead. This means that customers are no longer satisfied with purchasing conventional service and product bundles, but instead want to 'create' their own custom packages.


Individualistic self-reliant consumers have higher expectations for goods and services tailored to their needs as a result of this growth. Today's consumer is more self-driven when it comes to choosing what to purchase and how to acquire it. This behavior has been encouraged by new technologies like the Internet, which allows consumers to research and evaluate goods and services on their own and therefore choose which offer is the best.


How to Build A Micro Marketing Strategy?

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Then the question is how to adopt a customer-centered micro-marketing targeting strategy and approach? Micromarketing is a mix of two distinct concepts: retrieval of information and provision of service. Many experts explain that the business has a database of client preferences and purchasing habits and that the information is used to customize a service package for each unique customer on the other side of the company's carefully designed service strategy. This can be outlined in four simple but critical actions that one-to-one marketers must do to be successful.


The first step for businesses is to "identify their consumers" by determining "who are the heavy users?" and "who are the medium users?" by prioritizing the most loyal customers and avoiding spending money on those who seem to be completely unwilling to purchase your goods. The second step is for the business to "differentiate each client" based on which consumers are the most valuable to it. What time and money should be spent on a particular client depends on their worth.


It is the core of micro marketing to identify and cater to the specific requirements and preferences of your most important consumers. As the third point of emphasis, the firm should interact with its customers, which provides a chance to learn more about each client and how much they mean to the business. Final suggestion: the business should customize its goods for each user by connecting the manufacturing process with client input.


Businesses have shifted away from 'economies of scale' and toward 'economies of scope' in recent years, as a result. Information technology has made it possible to pursue a more focused, narrowly tailored marketing strategy: mass customization. A business must customize its marketing strategies in order to reap the rewards of one-to-one interactions. If a company wants to maximize its gains, it must mass-customize. Customization is the most extreme type of micro marketing.


It is possible to mass-customize goods and messages so that they are uniquely tailored to the needs of each client. When utilizing the aforementioned technologies to create and communicate, media and goods may be customized for each client and built-in order. These new technologies or next-level strategies also enable businesses to keep a complete record of all client information. To learn about their consumers' purchasing habits and interests, businesses are recommended to build detailed and comprehensive databases to interact with the customers more directly.


Without the appropriate technology, this kind of customized marketing is not possible. Each individual client must be profiled in order to have an effective marketing plan that is both highly targeted and highly customized. Only computerized databases can keep track of such enormous quantities of information. Once again, the connection between technology and this specific approach is made clear. Micromarketing relies on database marketing (DBM) to function. ACORN, MOSAIC, or PINPOINT data may help marketers target consumers considerably more accurately, allowing for a far higher degree of personalization. Database marketing is changing the way fragmented audiences are approached and personalized messages are distributed.


Future socio-demographic trends will have a significant effect on how marketing will need to be practiced in the future. It’s predicted by many that significant changes in consumer habits will occur in some time, as they are already evident in today's society and point to a brighter future. As it was mentioned above in the cons of micromarketing, considering the growing focus on the "self" and the "individual," marketers have begun to engage in a more personal, sympathetic connection with their customers, treating them as individuals rather than nameless members of the general public.


Relationship marketing is a common way to use micro marketing. The economic demand to deploy a customer relationship management (CRM) system across all channels has grown enormously as the business emphasis moves away from the product and towards knowing the customer and improving their value. Customer predominance and genuine customer service significance are two converging themes that make mass customization a 21st-century organizational concept. Unlike mass manufacturing, which removes the need for human contact, customization has made relationships with consumers more essential than ever. Relationship marketing is a key part of mass customization programs.



If one-to-one marketing is to have a bright future, it must examine the rules of the game and analyze the information technology needs. It requires a whole dedication and attitude geared toward getting to know each customer and giving them the attention they deserve.


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