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There are many types of marketing strategies that a successful business might use in a marketing campaign. Micromarketing is a differentiated marketing strategy that targets a specific group of people in a niche market. They aim to target a specific group of people that have specific qualities or live in a specific area.
Undifferentiated marketing, on the other hand, is when a business uses undifferentiated marketing strategies to target its whole customer base. These strategies are more generic and meant to be a one-size-fits-all approach.
Still, they can be useful in different ways. The question is- why use a differentiated marketing strategy like micromarketing instead of an undifferentiated strategy? Let’s explore the benefits of micromarketing as a marketing strategy.
Micromarketing or differentiated marketing strategies allow a company to identify a target market. Companies look at everything from race, gender, job title, geographic location, and more. This allows the companies to create a marketing campaign to target those who they feel will take action and buy a product or service.
This allows them to build a customer base and create brand loyalty for those who continue to come back to the company, again and again. In a world where people are looking for more and more ways to stand out and create their own custom lifestyle, this marketing strategy works.
Companies can create differentiated marketing strategies for several different audiences. There may be more than one target audience for a particular product or service and the company may need to create various advertisements to target both. By using a concentrated marketing strategy to target these audiences individually, they are more likely to capture the attention of their potential customers.
For example, there may be a brand that needs to reach both college-aged students, as well as working parents. This would require different strategies that are both under the micromarketing umbrella. This can ensure that they are using the correct marketing strategy for the various audiences they may want to reach.
Creating Marketing Campaigns
When companies create a marketing mix it is helpful to think about their target market. With micromarketing, it is much easier to create a marketing strategy for their campaign that is targeted at a particular group of people in their niche market instead of trying to create an undifferentiated marketing strategy that will be a fit for the entire market. By finding their niche market and working to create a marketing strategy for the campaign, it makes creating market segments like radio ads and other market segments much easier. Companies can focus on their target market and work to create a long-term marketing strategy that will help them find potential customers and create brand loyalty.
This type of differentiated marketing strategy can be done in many ways. Companies can create campaigns that offer promotions to their customer base, and tailor products to fit their niche market and its unique needs or market to a specific town or region.
Businesses today are looking for ways to offer more personalized marketing schemes to individuals in their target pool versus appealing to the mass audience. All of these differentiated marketing strategies cut down on the cost of the marketing campaign versus using undifferentiated marketing strategies. Undifferentiated marketing strategies tend to reach everyone, but don’t always appeal to everyone. The whole purpose of marketing is to locate and obtain new customers or retain customers that you already have. Why not work to do this by using targeted strategies that you know will work?
When companies are working to identify their target markets, they do have some work to do in the form of research before they can begin. This may cost a little more by working to identify their target market than it would cost to create marketing strategies for the entire market. Companies have to work to create advertisements that are designed to target a specific audience and customize those advertisements to fit the needs of their target markets.
They then must collect data to see if the strategies are working with their marketing mix and creating a successful campaign. This may be an issue for small businesses when it comes to funding this type of long-term marketing strategy versus going with undifferentiated marketing strategies that can fit the entire market.
With the advances in technology, one thing that can help when deciding what strategy to use, whether it be a differentiated marketing strategy or an undifferentiated marketing strategy, is the ability to track customer data. By having data, such as cellular data, favored sites, brand preferences, habits and more, companies can create a successful marketing strategy that can fit their target market.
This information allows even small businesses to create a micromarketing strategy to fit their target audience. The data that is provided is invaluable when creating a concentrated marketing strategy and can save money in the long run.
Examples of Micromarketing
One example of how a small business used this marketing strategy to its advantage is Lilly Pulitzer. This company was started 60 years ago in Florida. Through market research and looking at their marketing mix, they decided to launch a new campaign. The company partnered with Target to create a more affordable line of accessories, clothing, cosmetics, and home goods. It was such a huge success that it crashed Target’s website in one day. This is a marketing strategy that would not have worked had they gone with an undifferentiated strategy.
Another example of micromarketing is how Bumble used research to target a new audience. Bumble is best known for the dating app where women make the first move. Through research, the company determined that the app was more about creating connections than just focusing on dating. By creating Bumble Bizz, the company was able to target a whole new audience by allowing freelancers and entrepreneurs to connect. This allows the company to retain its users even after their dating life was over.
An example of a small business using this type of micromarketing is a local coffee shop. They just opened and have identified their regular customers as those in their 20s and 30s and they have a morning and afternoon rush. Business is going well. The owner discovers that there is potential to gain some new customers by targeting college students and older clientele.
By creating a campaign to showcase their high-quality beans and ingredients for the older population and also sending out promotional deals for college students for discounted coffee during a certain time period, they have a whole new marketing strategy. The older crowd is drawn in by the high-quality products and the college students are drawn in by the coffee that is cheaper than Starbucks.
In the ever-changing world today, where people want to be recognized as individuals, they are craving the custom life. They want to be noticed for how they stand out. This is something that companies have to take into consideration when determining the marketing strategy they will use.
Depending on the company and the product or service they provide, they most likely will find a differentiated strategy to be to their advantage at some point. So, the next time your business is looking at strategies, make sure to weigh the pros and cons of various strategies to determine if micromarketing would be best for business. Customers, the next time you see an advertisement for your favorite brand or even a new company, think about their strategy and how they are targeting you