Micromarketing is an extreme form of market segmentation where the market

Micromarketing is an extreme form of market

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tailoring products and marketing programs to suit the tastes of specific individuals and locations. Micromarketing is an extreme form of market segmentation, where the market segment is so small that it’s contained within a small geographic area— local marketing —or so small that it consists of only one person— individual marketing . Micromarketing The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments—includes local marketing and individual marketing . Local Marketing Local marketing involves tailoring brands and promotions to the needs and wants of a small group of people who live in the same city or neighbourhood or who shop at the same store. Most convenience stores practise local marketing, stocking their shelves with the items they know the people in their neighbourhood are likely to want. Local marketing A small group of people who live in the same city or neighbourhood or who shop at the same store. Advances in communications technology have given rise to a new high-tech version of location- based marketing. Using location-based social networks such as Foursquare, and local marketing deal-of-the-day services such as Groupon, local retailers can target consumers based on where they are right now: Location-based apps such as Shopkick, CheckPoints, and Swarm are all check-in services that offer users some kind of rewards, whether real or virtual. Shoppers using Shopkick collect points called “kicks” just by walking into stores, and CheckPoints users collect points by checking into locations or checking out (i.e., looking at) certain products within a store. Foursquare split off its check-in feature as a separate app called Swarm. And Groupon partners with local businesses to offer local shopping deals to subscribers based on where they live and what they like.
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Location-based apps provide users with a way to locate deals in their neighbourhood and share information with friends. For marketers, though, check-in services provide attractive targeting opportunities. According to the Internet Advertising Bureau, from 2012 to 2014 mobile advertising campaigns using mobile location data grew from $1.2 billion to an estimated $3.9 billion. Retailers seem to be most interested in the possibilities of location-based marketing—Apple’s recent launch of iBeacon technology prompted marketers at Lord & Taylor and Hudson’s Bay to install location-sensitive devices that send out push notifications to shoppers who have downloaded their mobile app. The rise of mobile has helped marketers stay alert to trends and consumer habits, and to offer content and promotions that are highly targeted—and therefore more likely to catch and hold the consumer’s attention. 18 Exhibit 7.11 Location-Based Marketing:
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Groupon provides local marketers with a way to advertise deals to consumers in their city.
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