Micromarketing

5 Key excerpts on "Micromarketing"

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  Marketing Management N4 SB

  TVET FIRST

  • CH Esterhuyse R van der Merwe(Author)
  • 2016(Publication Date)
  • Macmillan

    (Publisher)

  • Examples of small target groups: • Outdoor/4×4/camping/fishing customers. • Pet lovers. • Supporters of a particular sport (such as tennis). • Buyers of a particular motor vehicle brand. • Targets the largest possible customer base. • Focuses on the relationship between the production process and consumers’ purchasing patterns . • Focuses on features such as advertising, product features, in-store availability of products, and product packaging. • Examines the social effect of marketing and the flow of products and services in the economy. • Examines the marketing process as a whole. • Studies the opportunities and the shortcomings of marketing. • Seeks practical ways that can help to enhance marketing processes and systems. • Puts more focus on how wide a target market in a particular society is, and works on how the products can reach that particular target market. • Evaluates the benefits of your products to society, and not only to your customers. • Determines who will develop a product, the audience for whom the product is produced, and how much of the product should be produced based on market segments and demographics . It is important to note that the concerns of Micromarketing are completely different from the concerns of macromarketing: Micromarketing Macromarketing Is concerned with how enterprises make decisions about: which products to make for the market, methods of production, brand management, pricing decisions, distribution channels, consumer behaviour, and packaging and promotional decisions. Is concerned with: global markets, marketing and social responsibilities, overall consumer behaviour patterns, market-regulation laws, the efficiency of marketing systems, and socially responsible advertising techniques. unique: being the only one of a kind; unlike anything else spending habits: the way in which people spend their money, e.g.

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  Direct Marketing in Action

  Cutting-Edge Strategies for Finding and Keeping the Best Customers

  • Andrew R. Thomas, Dale M. Lewison, William J. Hauser, Linda M. Orr, Andrew R. Thomas, Dale M. Lewison, William J. Hauser, Linda M. Orr(Authors)
  • 2006(Publication Date)
  • Praeger

    (Publisher)

  This specialized approach may not be familiar to many of today’s consumers who are more accustomed to dealing with companies that try to be all things to all people, and chase after the elusive goal of increased market share. Characteristics of this Micromarketing strategy include the following: . More direct approach . More individualized messages . Highly interactive Customerization is the means for reaching micromarkets and companies that are working under the old mass marketing paradigm will consistently lose ground to those firms that have recognized the creative power of linking customer’s individualized needs to marketing efforts. Despite concerns that the new media age has made it more difficult for marketers to reach consumers, some industry executives see major benefits. Craig Leddy, senior analyst at Points North group consulting, in Larchmont, New York, sees this 64 Direct Marketing in Action new landscape as ideal for direct marketers, ‘‘the relationship that advertisers can have with the consumer on portable [MP3] devices is more personal because it’s on a little device being carried around, . . . it’s content the consumers choose to download.’’ 3 HISTORIC TRENDS IN TARGETING It is insightful to consider the past, present, and future trends in targeting strategy. Customers are increasingly sophisticated and demanding. In the past, companies could achieve a competitive advantage simply by shifting from a mass-marketed, one-stop- shopping, we-know-you-all-like-it-this-way approach to a differenti- ated approach. An example of this would include the hotel industry’s shift to differentiation. For example, Marriott hotels increasingly differentiated their offerings to appeal to distinct target markets. Under this differenti- ated approach, Marriott offers multiple product offerings to appeal to distinct targeted customer groups.

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  Marketing

  • William Pride, O. C. Ferrell(Authors)
  • 2019(Publication Date)
  • Cengage Learning EMEA

    (Publisher)

  All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. PART 3: Marketing Research and Target Market Analysis 166 markets, such as communities and even indi- vidual neighborhoods. Providers of financial and health-care services, retailers, and con- sumer product companies use micromarket- ing. Many retailers use Micromarketing to determine the merchandise mix for individ- ual stores. Increasingly, firms can engage in Micromarketing in online retailing, given the internet’s ability to target precise interest groups. Unlike traditional Micromarketing, online Micromarketing is not limited by geography. The wealth of consumer infor- mation available online allows marketers to appeal efficiently and effectively to very specific consumer niches. Climate is commonly used as a geo- graphic segmentation variable because of its broad impact on people’s behavior and product needs. Product markets affected by climate include air-conditioning and heating equipment, fireplace accessories, clothing, gardening equipment, recreational products, and building materials. Look at the adver- tisement for the Eddie Bauer EverTherm Down jacket, which targets consumers who need a coat for extremely cold climates. The ad emphasizes that the EverTherm can keep wearers warm down to −15 degrees (F), bet- ter than most down jackets by comparing thermal images of a body in an EverTherm jacket and one in a conventional quilted jacket. The picture of EverTherm-clad hik- ers walking comfortably in snowy mountains further illustrates the product’s benefits for those seeking a performance coat for cold- weather activities.

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  Principles of Marketing

  A Value-Based Approach

  • Ayantunji Gbadamosi, Ian Bathgate, Sonny Nwankwo(Authors)
  • 2013(Publication Date)
  • Bloomsbury Academic

    (Publisher)

  Such changes could be the entry of capable or stronger competitors into the segment, or a significant change in the purchasing power or buying behav-iour of members of the segment. Many companies therefore choose to diversify into several market segments to avoid ‘putting all their eggs in one basket’. Customized marketing strategy Customized marketing, the newest strategy, is also known as micro marketing . Here, a marketing strategy is created for customers individually instead of for each market segment. In other words, each customer is dealt with individually as a ‘segment’ and to some degree customers are allowed to create their own products. This strategy is more often used in business-to-business marketing (such as in advertising services or market research) or in highly customized products (such as custom-made cars istock © PaulVinten Anozie 157 5 or tailored clothing). Other good examples are some computer manufacturers, such as Dell and Cisco, whose modular design and customized manufactur-ing permit the production of individually made-to-order products according to customer specification. These businesses are successfully using this strategy to create more value for their customers and gain competitive advantage for themselves. However, this strategy requires an elaborate system for ascertaining information on the needs and wants of individual customers. In addition, there is a need for a highly flexible system of production and a strong direct-to-customer logistic system (Zipkin, 2001). These can prove expensive and time consuming for an organization and, even then, not all customers are willing to pay for such customization. Considerations for choosing a targeting strategy Having considered some of the advantages and disadvantages of the various target-ing approaches, we should bear in mind that there are a number of other factors that may influence a company’s targeting strategy.

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  Applied Marketing

  • Daniel Padgett, Andrew Loos(Authors)
  • 2023(Publication Date)
  • Wiley

    (Publisher)

  A more narrowly focused example of segment marketing is niche marketing. In niche marketing, the company identifies a subsegment that has special needs that typically is not large enough for the larger competitors in a market to pursue. For example, title loan companies pursue high-credit-risk loan custom- ers that traditional banks would not pursue due to the risk. The title loan companies charge higher-than-normal interest rates to accept the additional risk. Segments should be internally consistent (homogeneous), but externally different (het- erogeneous). In other words, the customers within a segment have to be similar, but the seg- ments should be different from one another. For example, age might be a useful demographic Micromarketing A marketing approach where a company considers every customer to be a segment of one. differentiated, or multisegment, marketing A marketing approach where the company identifies large groups that share similar characteristics. niche marketing A marketing approach where the company identifies a subsegment that has special needs that typically is not large enough for the larger competitors in a market to pursue. Technology Is Changing Segmentation Technology has had a significant impact on segmentation in recent years. The ability to track behavior and integrate data about cus- tomers has allowed marketers to use more segmentation variables and additional levels for more specific categorization. Compa- nies may literally provide their employees with pictures (real or stylized) with detailed descriptions of key customer types (see Figure 6.5). Electronics retailer Best Buy created customer types with names such as Buzz (young urban male tech enthusiast), Jill (busy suburban soccer mom who shops for the family), and Barry (high-income professional male who wants excellent service). Best Buy used the profiles to change store elements and to guide mar- keting tactics when training employees.

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