Advertising costs can get expensive, which is why we often try to market our products to as large and general an audience as possible. But sometimes, we might decide it’s worth it to specifically target a small group of potential consumers, like those living within a particular zip code. This is known as “micromarketing.”
For example, let’s say we’ve recently learned that our chair cushions seem to sell especially well among middle-aged women with dachshunds. It’s an odd connection, but if we can figure out a way to promote our cushions in a way that specifically targets dachshund-owning middle-aged women, there’s a good chance we could pick up proportionally more new customers than we would with a more general marketing campaign. The campaign itself might be more expensive to launch (all of a sudden we’re paying for ad space on dachshund-lover websites), but we’re betting we’ll gain enough new revenue to offset the cost.
