Reach the Right AudienceFebruary 7, 2019
Target marketing is a marketing strategy in which marketing is done with the aim of reaching a specific audience with a certain kind of service and products. Identifying the right customer and pitching the product/service through campaigns or other marketing medium is the key to target marketing.
For example, Harley Davidson began its marketing targeting men and women above the age of 40, who don’t want to rush but enjoy every travel.
Brands that offer specific products and service benefits the most from the targeted marketing strategy. The response from a specific audience is more likely to increase the chance of marketing. When the right marketing method is employed, the audience might spend money on a specific service or product.
Companies that offer specialized products or services typically benefit the most from using targeted marketing strategies. Focusing marketing efforts on specific groups who are more likely to respond increases the chances that the marketing efforts will be relevant to those groups. When marketing is relevant, people are more likely to spend money on that service or product. This marketing strategy provides in-depth information about the product, giving customers a choice to choose the brand over the competitors.
For example, Zomato holds one of the largest market shares in the online- food supply industry in India. The company focuses its advertising on women and men between the ages of 25 and 40 who live in urban areas, who are busy with professional work and a rigid income.
With its active presence in all social media platforms, Zomato stays connected to every Indian youth between the age of 18- 24, with marketing strategy aiming at bachelors and away from home people who are lazy to cook. This also increases brand awareness and encourages people to get attached to the brand.
Let’s see at the 4 main factors of Targeted Marketing.
- Ethnography- Understanding the target location for placing the product or service.
- Demography- The ethnicity, age and gender of the audience.
- Psychology- About the personal characteristics and religion.
- Attractiveness- Identify the audience who are interested in product and services.
Companies use targeted marketing to understand the audience and plan to advertise accordingly. Targeted marketing is much more effective in terms of efforts compared to mass marketing, which doesn’t take into account the psychology of consumers.
A targeted marketing plan starts with identifying the right audience. An online gaming company would study the market and finds out who uses online social gaming app the most. Once the statistics are found, the company will focus on marketing on those community who are interested in purchasing the product. If the study shows that people between the age of 20-35 are interested in the product, then the brand’s advertising efforts will be focusing on the customers of that age group.
After this, the brand can initiate marketing strategies that best reach its consumers. Campaigns include email promotions, social media contests and banners or ads. An email with a promo code and a download link personally in consumers email can make customer-brand relation to more personal level.
With the results in hand, the company can reform or redesign the marketing strategy to improve the sales of the product or the service. Understanding and analyzing the result can also help the company in changing the marketing campaign or expand their defined target markets.
Kellogg’s ran around 600 television ads per year promoting their pre-sweetened cereal which was aired during Television shows that focused on toddlers and young children. A study regarding this strategy found that almost 50 different cereals were shown to kids were displayed at stores after the airing of the ads were done. This targeted marketing has increased the sales of Kellogg’s cereals by 17 per cent of the total volume.
The Lloyds Banking Group ran a multi-burst campaign by direct mail, which called for action from the customers in the form of mail, telemarketing and digital display. The campaign was run due to poor customer service in the banking sector and small business owners switching bank accounts frequently. Llyod’s market study found that customers are expecting more from customer service than free-banking periods. Realizing this, they started to act upon it by running the campaign to re-establish the service credentials. The following year the Bank bagged ‘The best Bank award’. The campaign targeted around 70,000 businesses, with mailing chosen as the campaign platform expecting a long response. The mail had an evaluation form to compare the banking facilities and also an interactive quiz that compared Llyod with the other banks.