If sales make the world go round, then world-class sales leaders who keep their fingers on the pulse of the ever-changing needs and demands of consumers are invaluable. Successful sales leaders know that their roles require more than just people skills. They must understand organizational behavior, effective negotiation, advanced marketing strategy and market- and customer-based data analysis.
For the professional looking to gain the skills necessary to navigate the demands of sales leadership, the University of Louisiana at Lafayette offers a Master of Business Administration with a concentration in Sales Leadership. This unique online degree program, accredited by the Association to Advance Collegiate Schools of Business, is designed to develop students’:
- Negotiation skills that ultimately improve sales productivity
- Understanding of the theories and practices related to individual behavior, group dynamics, organizational structure and quality management
- Foundation in financial management, economics, marketing and analytics
The latter proves beneficial in understanding market trends such as micromarketing and how market segmentation plays a role in the overall sales landscape.
What Is Micromarketing?
To understand micromarketing, one must comprehend macro-marketing. Big marketing campaigns typically fall in the macro-marketing category, leaning into the idea of producing a general message for a massive audience and hoping it captures the attention of the majority. This technique works best for corporations with a considerable advertising budget. As big data transforms modern businesses, from understanding consumer behavior to helpful marketing tools, micromarketing has emerged as a valuable option.
Micromarketing embraces the notion of thinking small and narrowing in on the details. Some advantages to this method include:
- Cost-effectiveness: Micromarketing requires a smaller budget in comparison to the one-size-fits-all approach of macro-marketing.
- User-generated growth: With micromarketing campaigns, the consumers do some of the work for you. This marketing method plants seeds in targeted areas and relies on the interested consumers to buy into it and spread the word to others who may be interested.
- Advanced targeting: Micromarketing gets down to the nitty-gritty. It looks at specific population data — such as consumers’ demographics, location and favorite foods — and uses that information to a company’s advantage.
Uber, now a multi-billion-dollar company, benefited from micromarketing campaigns in its early expansion stages. The company utilizes social media data to gain insight into transportation issues and develop promotions to spread the word about the user-friendly app that gives people access to safe and reliable transportation.
Another example of a successful micromarketing campaign is when Procter & Gamble introduced the Pantene Relaxed and Natural product line. It developed creative advertising that specifically targeted Black women, the demographic that would benefit the most from this product.
Both examples show how market segmentation works in creating successful micromarketing campaigns.
What Is Market Segmentation?
Market segmentation breaks down the market into segments that require different marketing approaches. Companies that understand market segmentation utilize the information from each of the following levels to form comprehensive and useful marketing plans.
- Global: This is an inclusive level of segmentation that analyzes a population and provides specific details of your target audience, such as age, median income and buying patterns.
- Niche: This is a group of consumers with product preferences found within a global market segment. If your company produces non-toxic nail polish, your global market segment could be women between a certain age, but shade preferences could break down your niche segment.
- Localized: This level takes it a bit further and looks at the location of your niche groups, helping you decide how to tailor your advertising. You may want to focus ads with brighter shades of your non-toxic nail polish in locations that are sunnier, for example.
- Individualized: The final level focuses on the consumer habits of individuals. Examples of this data in action include a company’s sales and customer service experiences.
The effectiveness of micromarketing proves that bigger is not always better. With the emergence of big data and the invaluable insights it provides, businesses can create targeted marketing campaigns that generate more significant sales, increased visibility and authentic connection with ideal consumers.