Micromarket refers to the specific target market segment of a particular enterprise. These are the target customers that represent the immediate customers of an enterprise, meaning those who are currently buying the goods or services offered by the enterprise and its direct competitors. It likewise pertains to a clearly defined location or specific customer group that an enterprise wishes to serve.
The need for segmentation would be crucial in micromarket analysis because the definition of value for money differs from group to group. If they do not differ, then the entrepreneur is better off by aggrupating rather than segmenting. For example, the Makati office crowd has several choices where to eat. Observing the behavior of customers during lunch would indicate what groups of customers prefer fast food establishments, what group brings their own pack lunches, and what.group goes for casual dining. Several opportunities can be spotted by the entrepreneur, such as opening up a new food outlet or offering food delivery services to a particular office crowd.
