Micromarketing - pros, cons, and examples
The great news is, the internet has provided companies with the opportunity to reach a larger audience than ever before, but the bad news is that your competition has the ability to do the same thing. Bummer, but there is a way to hone in on your own marketing efforts.
The better you understand your target audience, the better your marketing strategy will be, and one way of doing this is with micromarketing strategies.
A strong micromarketing strategy can help you target niche consumers with specific campaigns with all your marketing efforts.
What is micromarketing?
Micromarketing is a strategy that allows small businesses and corporations alike to market a niche product or service to a very targeted audience.
In order to create a successful micromarketing strategy, a company or agency must narrowly define its target market and isolate its audience down to the specific age range, hobby, trait, etc.
What type of businesses benefit from micromarketing?
Companies of all sizes can be incredibly successful with micromarketing! If you are a small company in a competitive market, utilize your marketing dollars to reach out directly to your target audience.
Larger companies could also benefit from micromarketing by segmenting their current customer base into multiple sections. If you have a product that is more geared towards middle-aged men, or a service that is more popular among younger women - then break them down into groups. Then, create an email marketing campaign targeted with the specific product or service that is already proven to be most popular within a specific demographic.
By utilizing a micromarketing strategy, the company has researched traits and characteristics of the target audience, allowing the company to reach out specifically to individuals who are more likely to be interested in their product or service
Since the strategy is refined into a smaller audience, micromarketing is generally more cost-effective than targeting a large audience
The cons of micromarketing:
- Micromarketing requires more resources and is time consuming. With careful segmentation, resources and research, development of marketing campaigns and continuous changes, it can be a bit more extensive than other marketing strategies.
High cost of customer acquisition
- This is the best approximation of the total cost of acquiring a new customer. This takes into account the cost of the marketing strategies, any advertising costs, the marketers salary etc divided by the number of customers acquired. This investment can provide a higher rate of return, but at the same time, with research a bit off, it can have a higher cost than its worth.
How has micromarketing changed?
Micromarketing has introduced extremely niche influencer marketing strategies, user generated content, local influencers, and implemented influencer marketing based on niche hashtags consumers have been using.
One of the biggest successes of influencer marketing is micro influencers. This enables companies to leverage on-brand content with a pre-built segmentation of their target audience. This provides more room in the budget, uses less resources and optimizes time!
Another way this is changing is with nano influencers. These influencers have a very niche audience with less than 10,000 followers.
These influencers have built a strong community and their followers enjoy their content, respect their opinions and trust them at the end of the day. If your target audience for a specific campaign, or all campaigns, is extremely niche, it could be more beneficial to reach out to nano influencers.
Don’t get caught up in the glitz and glam of massive followers on influencers’ pages.
Is micro or nanomarketing the best option for your company? What about influencer marketing strategies? Contact us for our recommendations and how we can help you!
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Posted In: Social Media and Digital Marketing