Do Small Businesses Have a Future in the Globalized Marketplace?

https://www.bushcenter.org

"Globalization", a buzzword we have come to accept in business. Technological innovations over the last twenty years have increased the exchange of information exponentially. With this exchange of information, we have seen the rapid increase of trade, the sharing of knowledge, and tremendous international market growth. For the world at large, it has been beneficial. The forces of globalization may even eradicate poverty in the 21st century according to the United Nations. However, for small businesses, the competition has never been greater. Instead of competing with your neighbors for the "invisible hand”, a term described in Adam Smith's book, 'The Wealth of Nations', small businesses are now in competition with the global market.
The “invisible hand” drives prices so low, that small businesses struggle to compete. An example of this happened just a few weeks ago as I was bidding on a large job for a local manufacturing company. The purchaser had warned me that he had found the best price. Knowing this, I did everything I could to lower my cost, while still maintaining the quality we are known for. In the end, we didn’t get the job. When following up with that potential customer, he provided the price and the other company’s information. Through my research, I found that our competitor was not local, nor even national. I was competing with an international player. 
One strategy best suited for small business is called, micro marketing. It is the reverse of mass marketing, in that instead of focusing on high volume, uses a strategy to target a smaller sector of consumers with specific needs for products in their own market. Advertising dollars are focused on a small cluster of highly targeted consumers. 
Micro marketing takes into consideration a customer’s spending habits, income, and lifestyle. Through identifying these individualistic traits, a small business gains the upper hand through personalized customer service.  
Micro marketing also differs from mass marketing, because it provides a deep level of satisfaction to a smaller, ideally matched customer base. When a small business focuses on the specific needs of each customer, the resulting outcome, is lower customer turnovers, higher loyalty, and greater customer satisfaction. 
There are four zones of micro marketing. They are price, product, placement and promotion.  
Price/Product: Your price should fit within your customer’s spending habits. We recently had a customer come to us wanting their business vehicle fully wrapped. If we had not probed and asked more questions, she would have received a quote for a full wrap and looked elsewhere for a better price. The price for a full wrap did not fit within her current budget. With probing questions, we helped her design a partial wrap (product) that matched the paint on her existing vehicle. Our personalizes customer service and inquiry into her spending habits contributed to us keeping her business.  
Placement/Promote: In order for your service/product to be relevant, you must have accessibility to your potential customers. A combined strategy of advertising and sales is paramount to micro marketing. We have found that through direct mail, our customers can promote their businesses locally, without the need for addresses, names, or postage permits. Small businesses can micro target customers financial demographics and residence type.
 It is also cost effective, being approximately one third of the cost of a first-class stamp. Our customers use Every Door Direct Mail to offer menus, coupons, events, spotlight services and share sales. It is the most ideal way to target a smaller sector of consumers with specific needs for products in your own market.
Today’s customers are ready to order anything they might need, with just a click online. This impersonal way of doing business can also benefit the small business owner. Our customer’s come into our store looking for a “real person” to talk with. They want the combined expertise and experience we offer, before they make a purchase or decision. Utilize your personal touch. Get out of the office and meet your business neighbors. Donate your time and services to a local cause. 
With these micro marketing strategies your small business can compete and even beat the “Big Boys.” Remember to focus on your own sector, grow where you are planted, and serve your customer’s need in a way that the online masses cannot.  Your customer’s will have a higher level of satisfaction, greater loyalty and might just become your friends.