What is Micro-Branding? Traditionally, the term has been defined as a local brand that serves a specific geographic location or market niche. However, the discipline has evolved to mean so much more. The rapid expansion of the Internet has made it possible, and sometimes necessary, to categorize customer groups into more specific and targeted segments. Large companies and organizations are embracing this practice, realizing the opportunities to market directly to the needs of targeted consumer groups.
In practice, this concept is nothing new. For years there have been lesser known products that have found success with small groups of consumers. Specialty wines, fine art, niche products, all bought by thousands of people over and over again, but most of us have never even heard of them. They are successful thanks to a relatively small group of fans with high brand loyalty. Often times, these products find a worldwide audience without achieving mainstream success.
With the advent of inexpensive yet powerful search engines, social media, and other direct communication tools, it is now possible for companies to create products or services that are focused on a very specific group of consumers. By identifying groups of potential consumers who meet on sites and online communities, you have the opportunity to exponentially expand the number of people and groups interested in your brand. Simply put, the Internet makes it easy to reach enough people with the same interests to make it worth the cost of producing niche products that may not appeal to mainstream markets.
While traditional mass marketing seems unfocused, unappealing, and full of empty promises, micro-branding delivers a personalized message through a unique proposition. Additionally, micro-branded products and services can achieve greater brand loyalty by meeting a very specific need.
However, there are certainly challenges to the micro-brand approach. The first is to create the right message. To appeal to a specific consumer group, it’s crucial to get it right. It is imperative to listen to the target community to understand their needs and determine the best way to communicate your brand results. Pay close attention to user experiences and feedback to learn where your message or perhaps your brand has fallen short of its promise.
But perhaps the most challenging aspect of micro-branding, especially for large companies that offer a variety of different products, is not losing brand identity. Care must be taken to ensure that the messages delivered through micromarketing do not contradict the core aspects of the brand. Consumer niches provide a great opportunity, but are not worth looking into if they compromise the underlying brand identity.