Targeted marketing; most of us that are familiar with marketing methods and tactics will be familiar with this term. However, not all will have a clear picture of exactly what this means. To make it more intuitive we have the following cases.
The advertising of Southwest Airlines, in the U.S, is of low cost and is based around their frequent flights. This company focuses its sales mostly in middle class families and individuals along with the occasional small business owner.
At the opposite front we have United Airlines. This company focuses its market strategy on individuals with higher education degrees and middle to upper class individuals. Most of whom have a minimum household income of 50.000$. They also focus more on their first-class service, since people with that amount of household income are more likely to buy first class tickets.
These are day to day examples of targeted marketing. They both take into consideration a particular sector of their overall market and exploit it to generate more revenue. This is key, identifying your audience can, and likely will, help your increase your consumer base and profit a lot more. The targeted marketing is based on catering to a particular group, or groups, to help you maximize your earning based on the services you provide.
This can be done with advertising, offers, special services for a particular group among other ways. For a more in-depth review stay put and keep reading.
What is Targeted Marketing?
Targeted marketing is based on identifying an audience that has a particular need that you can supply with your services. After that, you, or your company, can use advertising to help those people be aware of your services and in time increase your consumer base. You basically put your effort in a specific product or service and make sure to give it as much visibility as you can with a certain group of potential customers.
Promotional messages, advertising, offers and special services are ways to hook those potential customers. Instead of mass marketing that doesn’t focus on a particular group. With targeted marketing you take advantage of the characteristics of a particular audience.
As another example, after Glaceau (The company) used targeted marketing to focus on a group of people between the ages of 18 and 49. Their company grew about 28% based on their vitamin enriched water.
Four key targeted marketing strategies.
- Use the geographical location. Potential customers in different regions of the world have different needs, focusing on a particular group can yield better results than focusing on all at once.
- Use the demographic approach. This is basically focusing on groups based on their race, gender or age.
- The psychological approach. Sort people based on their personalities, attributes and/or religion.
- The attractiveness and relative ability approach. Once you have a good number of customers, further research can be done to identify your consumer base as a whole group. Then you can adapt your services and products to meet all their needs and preferences.
Who Employs Targeted Marketing?
Short answer, basically everybody at some point. The longer answer is more comprehensive than this however. Any company that offers “specialized” products and services is making use of some sort of targeted marketing. Focusing on a specific group based on whatever criteria that company has is also considered targeted marketing. Keep in mind that the more relevant a service or product is to a particular audience, the more likely they are to spend money for it.
Targeted marketing typically uses information from their audience to provide them with an option that suits them the best. This is typically used to gain the upper hand against competitors in the same field.
Take Starbucks for instance. This company holds the biggest share of the coffee industry in the U.S. They do targeted marketing and focus on people between the ages of 25 and 40, mostly living in urban areas with a high to moderate income. They have certainly done their research on their audience.
For instance, they also target a subgroup of people between the ages of 18 to 24. They provide a neat place to study, chat, meet or even work. In contrast with the main group comprised mostly of professionals that need their coffee to go. Starbucks also relies on a good social media marketing campaign focusing on those 2 groups. This is one of the things that make Starbucks a great success.
More examples of well-known targeted marketing campaigns.
With a very easy successful and straight forward demographic strategy for their targeted marketing. This company focused on advertising during episodes “The real housewives of orange country”, a show they knew most of their audience would watch. This sky-rocketed their revenue.
Pepsi-Cola company also made use of a demographic strategy for their targeted marketing campaign. When they were struggling with the sales of one of their products that had problems with the way it was viewed by the public. To solve this, they focused on people from 18 to 24 years old living in urban areas, they even hired Paul Rodriguez and Lil’ Wayne to help with the publicity in major cities of the United States. As a result, their sales went up drastically in the group of people that they focused on.
How is Targeted Marketing deployed and developed?
Targeted marketing can be employed to learn more about a particular group of clients in your audience. This in time allows the company to focus its efforts on better advertising for this audience. This usually results on bigger and better income than using a mass marketing strategy.
A good targeted marketing approach starts with identifying your primary audience. To do this is very common to hire a market research service to not only identify your audience but to also what their preferences are.
After that, the company will determine which part of their audience is more likely to respond positively to the services offered. It is based on this group that the company builds its advertising program and products. Focusing on this group mostly will greatly increase their appeal for your brand.
When all of this is done it’s time to take a more active stance and actually deploy the program based on your information. This is, paying for advertising, deploying email marketing campaigns, offers and more. Once your brand reaches the desired audience it’s only a matter of time before you start experiencing a growth in your consumer base.
Based on the results of the targeted marketing campaign the company can collect data and create an even more specialized one. This can also result in more income and a more engaged client base. Keep in mind that not all is publicity, your products and services have to deliver all that you advertise and offer. Otherwise this is all for nothing.
What types of careers employ targeted marketing strategies?
Marketed research coordinator.
A market research coordinator identifies market trends and opportunities to generate marketing campaigns designed for a particular public. To hold this position the person needs to understand the behavior of the consumers and predict their spending habits. They can earn from 60.000$ to 111.440$ per year.
People can opt-in for this position with just a bachelor degree in marketing. Any professional experience will likely be a great aid if you’re looking for job such as this.
Social media manager.
As the social media experiences its boon in our culture so it does the possibility to generate income out of it. A person with this job takes care of the managing of social media pages, whether on Facebook, Twitter or other platforms. They make sure to increase the visibility of the company; they also interact with the targeted customers. They can earn from 57.550$ to 166.400$ per year.
Again, the minimum requirement is to have a bachelor degree is marketing. Any experience in the handling of social media is also highly valued. Most companies do look for individuals with extensive professional experience in optimization in targeting marketed.
Director of advertising.
The director of advertising makes sure to guide the entire company in the marketing front. From managing targeted marketing strategies to deciding the best audience for a particular public. This position oversees all marketing campaigns taking place in the company and at the same time it directs the efforts of the marketing team. A person in this position can earn from 83.890$ to 112.800$ per year.
The same requirement as before, a bachelors degree in marketing. To this is added the extra requirements for abilities in team managing and wide experience in the marketing field, especially in targeted marketing.
Targeted marketing education.
A good target marketing education program teach students how to understand human behavior and apply the information obtained from it to a business. This feat comprises a great deal of mathematical knowledge and analysis.
In addition to this you can also expect to learn about scientific marketing and other associated concepts. This all in an effort that the person knows how to collect data properly and understand it. From analyzing market trends to identifying good advertising opportunities.
A bachelor degree in marketing can take you a long way, but is by no means the only tool you’ll need in todays market. Consider learning about targeted marketing and see how much revenue you can generate using it.
Powerful targeted marketing strategies.
Kellogg’s and General Mills.
This brand of cereal employs about 650 television ads per year. They cater to an audience of merely kids and toddlers. However, this demographic strategy has taken them to where they are now.
As you might have taken from this last example. The targeted marketing approach is not only powerful, but also a great tool to have at your disposal. In this last case Kellogg’s grew approximately 17% while General Mills grew 12%. So, quality of the product is also to be taken into consideration.
Given that you now have all the pertinent information and motivation to keep learning about targeted marketing. Try taking courses online or any other place, if you seem to get the gist of it try following this approach on a more professional aspect. Remember to take into consideration all aspects and strategies available to you when attempting to deploy a targeted marketing campaign. Don't forget to verify emails before continuing your email marketing efforts.