Micro Marketing vs Macro Marketing

Micro marketing is a strategy which focuses on a small demographic of highly-targeted consumers. The demographic which is being targeted must be highly refined for this process to be effective. An example of micro marketing would be to pick a specific ZIP code in the United States, study the population in that location, and then create a marketing campaign which is specific to that demographic.

Macro marketing is a strategy that focuses on a society, an economy, or a whole demographic. Using the ZIP code analogy, this form of marketing would target all the ZIP codes of an entire region, such as Seattle, instead of just one. The population of that demographic would still need to be studied, but the results are more generalized when compared to the results of a micro marketing effort.

Here are some of the other key differences to consider when looking at the micro marketing vs macro marketing debate.

1. Activities of Consumers

Micro marketing looks at the activities of individual consumers. This strategy looks to identify specific needs that these consumers may have so that a product or service can be directly delivered. It is a process that analyzes the actual lifestyles of specific demographic groups so that a value proposition can be delivered at an individual level.

Macro marketing is a strategy which looks more at distribution than value. The goal is to get as many consumers as possible to purchase the goods or services that are offered. Some consumers that have no need for what is being offered may be targeted in this strategy, but the blanket coverage is geared to catching more people with a generalized message.

2. Relationships and Networks

Micro marketing seeks to build consumer relationships that are stable and solid. The goal of this network-building process is to create repetitive sales by inspiring brand loyalty at the individual level. Each effort is based on the value of the product, the place of its creation, how it is promoted to every individual, and keeping the item at a price point which maximizes the value proposition.

Macro marketing seeks to maximize the use of resources at a community level. Instead of focusing on building an individualized network, this strategy looks to build a network of communities. This allows the brand to focus on selling and distributing products to as many people as possible without the need to build long-term relationships. Repetitive sales and brand loyalty are de-emphasized in this strategy.

3. Brand Survival

Micro marketing is based on the current needs of the brand and business in the present moment. Metrics that are formed on the micro-level get met through building local market shares within targeted demographics. This allows for more profits to be earned over time.

Macro marketing focuses more on the needs of the community or the society than the survival of the business. If the welfare of a society can be preserved, then this will allow the brand or business to survive as well. Once this is assured, improving the standard of living for communities and maximizing the satisfaction of consumer demographics will create sustained profits for the business.

4. Cost

Micro marketing costs are limited and predictable. This is because the focus of this strategy is highly refined. Even packaging costs are reduced because there isn’t a widespread region that needs to be served when using this type of strategy. That is why it is a highly attractive marketing option for SMBs, sole proprietors, and freelancers.

Macro marketing entails much higher costs in virtually every area. Although bulk purchasing may reduce per unit costs to a lesser expense than micro marketing, the overall monetary cost is higher because more consumers are being served. Networks that serve an entire community for shipping and service must also be formed and this has a higher cost as well.

Is Micro Marketing or Macro Marketing Better for a Business?

If the goal is to maximize a market share, then micro marketing is the better choice.

Brands and businesses which want to grow their presence within a large community, support economies of scale, or reach national or global markets are better off focusing on macro marketing as their strategy.

What is unique about today’s world, however, is that SMBs can do both. With global platforms such as Upwork, individuals can have a global reach and still work at an individualized level.

This means both marketing strategies have value. One is only better than the other based on what the focus of the business happens to be.