Micromarketing
Encyclopedia
Micromarketing

"Micromarketing" was first referred to in the UK marketing press in November 1988 in respect of the application of geodemographics to consumer marketing. . The subject of micromarketing was developed further in an article in February 1990, which emphasised understanding markets at the local level, and also the personalisation of messages to individual consumers in the context direct marketing. . Micromarketing has come to refer to marketing strategies which are variously customised to either local markets, to different market segments, or to the individual customer.

Micromarketing

Standard pricing policy ignores the differences in customer segments of specific stores within a regional chain of stores. The process of customizing pricing policies at the individual store level is known as micromarketing. This marketing strategy tries to appeal to specific customers or customer squirtle segments. It requires a great deal of technical capability and the Internet has been a catalyst in the development of this strategy. it mainly refers to target section of customers wants .

History of Micromarketing

With increased availability of electronic scanner data there has been a greater focus on research of micromarketing and pricing
Pricing
Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, and quality of product. Pricing is also a key variable in microeconomic price allocation theory. Pricing is a...

 problems that retailer's encounter. Research in 1995 by Stephen J. Hoch et al. provided empirical evidence for the micromarketing concept. In 1997, Alan Montgomery used Hierarchical Bayes model
Hierarchical Bayes model
The hierarchical Bayes model is a method in modern Bayesian statistical inference. It is a framework for describing statistical models that can capture dependencies more realistically than non-hierarchical models....

s to improve the estimation procedures of price elasticities, showing that micromarketing strategies can increase gross profits.

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