Behavioral Targeting Blog

trends & companies for smart marketing & targeting strategies

Targeting Strategies
January 18, 2010
http://behavioraltargeting.biz/targeting-strategies/ (May 14,
2011)

What are Targeting Strategies?

Targeting strategies are generally used in terms of
advertising as ways to maximize sales profits by directing
marketing projects directly at the most likely consumer base.
There are several different targeting strategies but the basic
goal of each remains the same, to identify the target market or
audience who is most likely going to be interested in buying your
product so that you reach the people who will make a purchase.
In general, the aim is to spend money reaching only consumers
who want your services instead of a wide audience out of which
only a few people may be interested in your services or products.

Different Kinds of Targeting Strategies

Along these lines, some of the most popular and frequently used
targeting strategies are consumer marketing strategy,
behavioral targeting, contextual targeting, and segment
marketing. The common link of most of these targeting
strategies is based around identifying the needs of your target
audience and tailoring your marketing efforts so that you meet
their needs and wants. Of course, in order for any of these
strategies to work to their best they also require the proper
consumer research to identify who your target audience is.

Offline Targeting Strategy

A popular offline targeting strategy is to create a brand name
and style that carries a stigma that your target audience can
identify with. For example, back in the nineties when the
economy was still healthy Abercrombie and Fitch marketing
affluence and exclusivity at middle class society and as a result
created a clothing label out of thin air that was the requirement
for all teens and college kids. Their success did not happen
overnight as they participated in wide consumer research
strategies throughout their period of success to provide what
they deemed their audience wanted.

Advertise to your Target Audience!

For an online business, targeting strategies include consumer
research that focuses on the willingness of their target audience
to spend versus the relative need they have for a product. It also
focuses on the consumer behavioral habits of consumers which
are roughly defined as browsing habits. Then, the real trick is
placing marketing advertisements in an area where the target
audience surfs that is directed at the research that defines what
will make them bite. While it is a twofold process, the payout is
that most browsers will take the chance to look at the product
offering and maybe purchase versus a wide scale marketing
effort that only succeeds in a few people taking a glance

8Share

http://knol.google.com/k/marketing-strategy-differentiating-and-positioning-
the-market-offering# (May 17, 2011)

Used a reference from the text (for target marketing) May 16, 2011:

Page 201-202, 204-207

Used reference from the text (branding) May 17, 2011: pp. 236, 238 (???)

Use a reference from the text (positioning) p. 209-210

http://www.innismaggiore.com/difference/approach.aspx (May 17, 2011-

positioning)

http://www.learnmarketing.net/positioning.htm (May 17, 2011)

http://en.wikipedia.org/wiki/Positioning_(marketing) (May 17, 2011)

How to build a strong brand and a successful business

A key element of strategy planning should involve the development of your
brand and how you would like to be perceived.
When designing a brand strategy, this is the first question you should ask:

What is your unique selling proposition?

Consider all aspects of the marketing mix and examine what makes your
business unique and attractive to the consumer. If these factors lead to a
competitive advantage then you have determined your Unique Selling Points,
or USPs. These USPs are major contributory factor to what makes your
business successful, so should form the central theme to your brand strategy.
Most brands concentrate on several of the most powerful and easily
communicated proposition benefits in order to create a clearly understood
brand message.

Brand values
USPs are why customers are currently buying your products and form the
basis of your company 'brand values'. However, brand values should
constantly evolve to suit changing market conditions and should also reflect
your forward looking business strategy. Once these are established, it's
important to ensure that your customer experience reflects these values in
every aspect of your business. This means tailoring every element of the
marketing mix to project your brand values - from the staff you use, the
products you produce, the messages on your advertising, and even the way
you handle complaints. Building a respected brand can take a lot of hard work
and you'll need the commitment from your employees and stakeholders to
make it happen.

Example brand values

We demonstrate total Our starting point is the needs and expectations of our
customer dedication customers

We innovate continuously and explore new options

We're pioneers
with creativity

We aim for the highest quality, particularly in activities

We excel in all we do
with the greatest value potential

We encourage everyone to
Every employee counts
contribute

We test every proposed action to see whether it is

We act with integrity
proper and reflects standards we can be proud of

Remember, a brand exists in the mind of the consumer. It is the intangible

sum of thoughts and feelings about a particular company, service or product.
A company can steer how a brand is perceived by never has full control.
 A brand is be represented tangibly by branding, which allows the customer to
easily identify a product using an identity which sometimes formalised in a
corporate identity document. This can include the colour scheme, logo,
slogans, typeface and can go into depth of how these all work together.

Benefits of a strong brand

• It will add value to a company
• Requires less persuasion for consumers to use other products from the same
brand
• Can ensure a lasting customer relationship due to trust
• It aids recognition in a cluttered marketplace
• Has the ability to command a premium
• Allows differentiation between very similar products, for example still mineral
water
• Can attract merchandising contracts
• Leads to the perception of quality
There are two core elements to a strong brand – emotional value and
practical value. Get these two right and your brand will quickly grow.

However, a brand can be damaged much quicker than it can grow - five
things that will quickly damage your brand include:

• Untrustworthy behaviour
• Concern about public safety or health
• Poor customer service (at any level)
• Obvious company financial difficulty
• Poor quality products
Get the balance right and your business will go from strength to strength.

http://www.marketing-made-simple.com/articles/brand-building.htm
(May 14, 2011) THIS SOURCE IS A BLOG!

A strategy that integrates an organization's marketing goals into a

cohesive whole. Ideally drawn from market research, it focuses on the
ideal product mix to achieve maximum profit potential. The marketing
strategy is set out in a marketing plan

http://www.businessdictionary.com/definition/marketing-
strategy.html (May 14, 2011)
Customer Segmentation Strategies
 by Kristie Lorette, Demand Media

http://www.smithfam.com/news/oct00x.html (May 17,

2011)

• Once a business has identified its target market--the people most

likely to purchase its goods and services--it may divide the
customers further using segmentation strategies. Customers in
these segments share one or more characteristics. Using this
knowledge, the individual responsible for marketing a small
business develops specific plans to reach these targeted
customers effectively. Segmentation allows companies to build
relationships and loyalty in customers by better providing for
their wants and needs. Although a company could use countless
variables to segment its overall market, there are a few variables
that are most commonly used for customer segmentation.
• The Demographic Strategy
Demographic segmentation involves dividing the customer
market using variables such as gender, age, income, level of
education, occupation, socioeconomic status, type of family
(traditional, divorced, single parent), religion, language, culture
and nationality. For example, a product may succeed in one area
of the country and fail in another due to the concentration of a
particular culture or nationality. Toys and clothes are usually
marketed to particular ages and genders, and some services are
created specifically for those in a particular income bracket (e.g.
housekeepers, nannies, landscapers). If your target market is
families with young children, a demographic marketing strategy
 would have you searching for advertising opportunities in
magazines, online newsletters, websites and other publications
that cater to these families.
• The Geographical Strategy
Geographical segmentation divides the market according to
specific location, and can refer to an overall country or state or
can be divided further by neighborhood. Geographical
segmentation can also use variables like climate, size of city or
town, rural or metropolitan area, and type of landscape
(mountainous, beachside or farmland). This allows companies to
determine the kinds of products that are useful or necessary in
specific areas. For example, a company specializing in surfboards
and other beach sports equipment will focus its efforts on states
such as Florida and California where surfing is a popular sport.
This strategy allows for targeted communication as well. If the
company is using billboards in a beach area, the message is
more likely to reach its intended target than placing the same
billboard ad in the middle of a city.
• The Psychographic Strategy
The psychographic strategy divides the customer market
according to values and lifestyles, social status and personality
type. This type of segmentation separates the market by how a
person living a certain lifestyle responds to the consideration and
purchase of a product or service. Interests, attitudes, opinions
and values all contribute to a person's view toward a product or
service. For example, those with liberal political views may not
be interested in a new book authored by a very conservative
author. Using this strategy, a company can present its products
in a way that makes them attractive to a particular group,
according to their status, personality or values. Higher social
classes may be more open to additional services, features and
exclusive sales, as an example.
• The Behavioral Strategy
The behavioral segmentation strategy means that the company
uses information obtained regarding its customers' needs and
their reaction to the needs. Behaviors may include customer
loyalty to a particular brand; paying the asking price for
purchases or living on a restricted budget; repeat purchases or
first-time customer; or customers who are ready to purchase or
ready to compare to what they have seen elsewhere. Customers
segmented using this strategy may also be divided according to
the way they use the product or service or the intensity with
which they use it -- for example, a customer who hires a cleaning
service once a week versus one who hires the same service once
every six months. If a company realizes that there is a need for
additional choices from a line of products in order to provide
more variety to a loyal customer, it can develop the products
based on the knowledge received via this segmentation strategy
http://smallbusiness.chron.com/customer-segmentation-strategies-
4007.html (May 14, 2011)

Segmenting
Segmenting is the process of dividing the market into segments
based on customer characteristics and needs.

The main activity segmenting consists of four sub activities.

These are:

1. determining who the actual and potential customers are

2. identifying segments

3. analyzing the intensity of competitors in the market

4. selecting the attractive customer segments.

The first, second and fourth steps are described as market

segmentation. The third step of analyzing the intensity of the
competitors is added to the process of segmenting in this
process description. When different segments are identified, it is
not necessary that these segments are attractive to target. A
company is almost never alone in a market -- competitors have a
great influence on the attractiveness of entering a certain
market. When there is a high intensity of competitors, it is hard
to obtain a profitable market share and a company may decide
not to enter a certain market. The third step of segmenting is the
first part of the topic of competitor analysis.
The need for segmenting a market is based on the fact that no
market is homogeneous. For one product the market can be
divided in different customer groups. The variables used for this
segmenting in these groups are usually geographical,
psychographical, behavioral and demographic variables. This
results in segments which are homogeneous within and
heterogeneous between each other. When these segments are
known, it is important to decide on which market to target. Not
every market is an attractive market to enter. A little filtering has
been done in this activity, but there are more factors to take in
account before targeting a certain market segment. This process
is called targeting.

[edit] Targeting
After the most attractive segments are selected, a company
should not directly start targeting all these segments -- other
important factors come into play in defining a target market.
Four sub activities form the basis for deciding on which segments
will actually be targeted.

The four sub activities within targeting are:

1. defining the abilities of the company and resources needed to

enter a market

2. analyzing competitors on their resources and skills

3. considering the company’s abilities compared to the

competitors' abilities

4. deciding on the actual target markets.

The first three sub activities are described as the topic

competitor analysis. The last sub activity of deciding on the
actual target market is an analysis of the company's abilities to
those of its competitors. The results of this analysis leads to a list
of segments which are most attractive to target and have a good
chance of leading to a profitable market share.

Obviously, targeting can only be done when segments have been

defined, as these segments allow firms to analyze the
competitors in this market. When the process of targeting is
ended, the markets to target are selected, but the way to use
marketing in these markets is not yet defined. To decide on the
actual marketing strategy, knowledge of the differential
advantages of each segment is needed.

[edit] Positioning
When the list of target markets is made, a company might want
to start on deciding on a good marketing mix directly. But an
important step before developing the marketing mix is deciding
on how to create an identity or image of the product in the mind
of the customer. Every segment is different from the others, so
different customers with different ideas of what they expect from
the product. In the process of positioning the company:

1. identifies the differential advantages in each segment

2. decides on a different positioning concept for each of these

segments. This process is described at the topic positioning,
here different concepts of positioning are given.

The process-data model shows the concepts resulting from the

different activities before and within positioning. The model
shows how the predefined concepts are the basis for the
positioning statement. The analyses done of the market,
competitors and abilities of the company are necessary to create
a good positioning statement.

When the positioning statement is created, one can start on

creating the marketing mix

http://en.wikipedia.org/wiki/Segmenting_and_positioning (May 14,

2011)

http://www.projectalevel.co.uk/as_a2_business_studies/undifferentia
ted_differentiated_concentrated_marketing (May 15, 2011)