What is a common marketing strategy for microenterprises?

Word-of-mouth marketing is a particularly effective strategy for microenterprises due to their typically limited budgets and the close-knit nature of their target audiences. This approach leverages personal recommendations and referrals from satisfied customers, which can significantly enhance credibility and trustworthiness. Since microenterprises usually operate in local or niche markets, building a strong reputation and getting existing customers to spread the word can be more impactful than the broad reach provided by more expensive advertising methods.

In contrast to options like television commercials or billboard advertising, which require substantial financial investment and are less personal, word-of-mouth marketing allows microenterprises to grow organically and engage authentically with their community. Social media advertising could also be effective, but it may require resources and know-how that some microenterprises might not have yet fully developed, making word-of-mouth a more accessible and relatable strategy.