Micromarketing is based on individualized marketing. Although, differentiated and concentrated marketers alter their products, offers, and marketing plan to meet the needs of different market segments and niches. At the same moment though, marketers do not customize their offers to each individual customer.

Micromarketing is a practice of altering products and marketing plans to suit the choices of specific individuals and locations. Micromarketers see individual in every customer rather than seeing customer in every individual. Micromarketing consists of local marketing and individual marketing.

1. Local Marketing

Local marketing involves altering brands and promotions according to the needs and wants of local customer groups, like neighborhoods, cities and specific stores. For example, Citibank provides various mixes of banking services in all of its branches, depending on neighborhood demographics. Kraft helps many supermarkets chains to identify the specific cheese variety and shelf positioning that will help to optimize cheese sales in low-income, middle-income and high-income stores and in different cultural communities.

But there are some drawbacks in local marketing. It can drive up marketing and manufacturing costs by dropping economies of scales. It can also generate logistics issues as companies try to gather the varied requirements of various local and regional markets. Furthermore, an overall image of brand might be damaged if the message and product vary too much in various localities. 

2. Individual Marketing

In the extreme, micromarketing becomes individual marketing. Individual marketing involves altering products and marketing plans to the needs and preferences of individual customers. Individual marketing has also been labeled as mass customization, one-to-one marketing and markets-of-one-marketing.

The extensive use of mass marketing has doubted the facts that for million consumers are served as individuals. The tailor-custom made the suit, the cobbler designed shoes for each individual and cabinetmaker made furniture to order. Today, though, new technologies are authorizing many companies to return to customized marketing. More powerful computers, robotic production, detailed databases, flexible manufacturing and interactive communication media such as email and internet, these all have combined to encourage mass customization. Mass customization is a process through which firms interact one-to-one customers to design goods and services tailor made to individual needs.

So in micromarketing, marketers need to involve individual customers and make sure to provide them customized services.