Join Drew Boyd for an in-depth discussion in this video Targeting your customers, part of Marketing Foundations.
Segmentation tells us how we are going to appeal to customers. In targeting, we make decisions on whom to go after. It's a process of narrowing down your audience to a selected group. Now, that may seem like a bad idea. After all, the whole idea of marketing is to get as many customers as you can. Right? That's true, but keep in mind that your marketing message will not appeal to everyone.
You're better off narrowing down the audience to the most receptive ones, than blasting your marketing message to everyone, hoping that a few stick. You'll waste a lot of money that way. So, think of targeting as looking for the largest group of customers that are most willing to consider buying your product or service, based on your marketing appeal. When I do targeting, I start with the attitudinal benefit that we selected during segmentation. Then I test to see if there are any demographic characteristics of people that might be more inclined than others to want that benefit.
If there are, then I want to identify them, and market to them. I do the same thing with geographic data, or certain cities or countries, more likely to want that benefit. Next, I consider the behavioral data. Remember the four customer types we just described in the analysis phase? I look for two things. Which of the four groups is large in size, and might be most receptive to my marketing message? Let's do an example for our fictitious company, a maker of men's leather wallets.
Our primary benefit is slim. Now who out there might really, really value this benefit in a wallet? Older men? Younger? Heavy set? Thin and slim, well, probably not. I'm not coming up with any physical characteristics, who would want thin more than others. Let's move to behavioral. Our current loyal customers are already big believers in our thin message. Is there an opportunity to get more business out of them? Perhaps a passport case, or perhaps encourage them to buy it as a gift.
That's probably easy to do, but I have to balance that against the opportunity. The number of loyal customers is relatively small compared to the other customer groups. I could target customers who are using a competitor's wallet, and who may be ready to replace their wallet. There's a lot of them, and here's an idea. When I consider my primary benefit of thin, perhaps I need to expand my view of the customer definition. I'm not after men who are replacing their wallet.
Rather, I'm after men with over stuffed thick wallets. There's lots of them too. These guys are the most likely to appreciate the benefit of slimming down. Now here's my strategy. It's starting to take shape. I think of marketing as a set of dials on a control board, and I can turn those dials to get the right mixture of size, and probability of conversion. Think about how we define our core business, how we defined our scope. And customer definition.
And then, how we narrowed down our audience, using various segmentation approaches. Turning these dials to tweak our model gives us strategy, that defines how we are going to compete. And who we are going to compete for. We have one final step. We have to define what we are going to say to the market to convince them. That step is called positioning.
You'll also learn to address tactical challenges and present the plan to get buy-in throughout an organization, from the C-suite to the sales team, as well as use the marketing plan to guide outside agencies and vendors. Finally, you'll learn how to launch the campaign and measure its performance.
- Marketing in an organization
- Assembling the team
- Creating the marketing plan
- Analyzing your products, customers, and market
- Segmenting customers
- Creating a value proposition
- Developing a strategy
- Setting goals
- Setting prices
- Using social media
- Presenting your plan to leadership
- Budgeting your plan
- Measuring success