Targeted marketing is fundamental to effective marketing and sales
By accurately understanding your target customers and what they value we can communicate the right messages to the appropriate people
Targeted Marketing Can Help Generate Growth for Your Business?
Targeted marketing is an approach to raise awareness for a product or service among a specific (targeted) group of audiences that are a subset of the total addressable market. The targeted audiences that are part of the total market could be specific businesses, professionals, or consumers, depending on who the business is trying to reach.
Targeted marketing has been shown to be an effective way to help you to grow your business, generate revenue, and improve your overall ROI.
Targeted Marketing is Different from Other Types of Marketing
Targeted marketing is a tactic that contrasts with broader approaches that aim to raise awareness, such as billboard advertising.
Targeted marketing starts with defining “who” specifically is a good fit for a product or service and delivering personalized messages directly to that targeted audience.
This is very different than starting with “what” the promotional message is and expecting audiences to react to it. When you start with the “what,” the marketer may not know who will respond to a message or if it is relevant to them.
An example of What over Who
For example, as a one off at work you are asked to go online and make purchase of flowers for a bereavement. If the company you purchase from does not know the details of “who” you are, they may start to show you more ads for flowers and bouquets when in reality, you are not interested in that category beyond the single purchase.
Understanding the “who” when executing email campaigns and online advertising, helps marketers craft personalized messages that resonate with the reader. This likely improves the chances of conversion and revenue growth for the business.
What Criteria Is Used in Targeted Marketing?
Traditionally, the criteria used was made up by firmographic (size of the company, industry, revenue) or demographic (age, gender, income, education, race, religion, marital status, profession, etc.) data depending on whether the marketer is offering a product or service for a business or consumer.
This has changed slightly with the rapid increase of digital devices connected to the internet, as well as new analytics capabilities, have resulted in many new criteria that allow marketers to reach their intended audience more easily and more successfully.
For example, intent-based targeting allows marketers to reach audiences that are actively demonstrating signs of “interest” in a topic, product, or service as defined by their digital activities. These digital activities may include search terms entered into Google. They can also include form fills when someone downloads a piece of content or signs up for an event or email newsletter. These are translated into audience segments that are defined by the activity that took place. An example of this could be a business searching for loading shovel attachments, the person searching for “high tip buckets” may be placed in a different segment to someone searching for “pusher blades”.
If you know what someone is searching for, it is a lot easier to determine if they are a good prospect for your business. It is also easier to craft targeted messaging that will appeal to their needs.
Finally, marketers can also use analytically derived audiences that have a high propensity for a product or service. This means that they are more likely to procure than others. These segments are created by machine learning models that analyse the various features of a consumer or business and apply that to the broader market of audiences to identify those that share similarities with them. These are then segmented into audiences that have a “high propensity” or “likelihood” to be a good fit for messages that marketers want to deliver to them. Understanding if someone is more likely to buy, allows you to get more for your money when it comes to paid ads and marketing spend. The more likely the audience is to convert, the higher your ROI will be.
Could being Targeted Help You?
For many of the B2B and manufacturing companies we work with they typically don’t need 100’s of new customers or enquiries. For example if they got hundreds of enquiries they wouldn’t have the systems, processes time or resources to simply deal with the enquiry. Additionally they wouldn’t have the on site processing capacity to deal with a rapid influx of enquiries / orders.
A targeted approach allows you to accurately identify and focus actions – the analogy would be going hunting with a shotgun as opposed to a rifle with laser guided targeting. Click here to see examples of targeted marketing or talk to Andrew Goode an FCIM experienced marketer who will discuss your marketing and sales requirements.