Target Marketing

Marketing Concept and Targeting

Marketing Concept Definition from Kleppner:

“Determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than your competitors…”

Marketing Concept Definition from Marlon Sanders:

“Find out what people are buying and sell it to ‘em…”

What is a Product? (Service)

Something that satisfies a need or want…

A product may be something physical, but someone will buy it to satisfy an emotional or psychological desire.

What is a Market?

A group of people who

can be identified by some common characteristic, interest, or problem 

can use a product to their advantage, and

can be reached through some medium.

What is Competition?

Any force or circumstance in the marketplace that inhibits the sale of a product.

What is "Target Marketing?"

“Rifle vs. shotgun”

The Parable of the Sower

The Parable of the Sower is a parable of Jesus. According to the parable, a sower scatters seed on a path, on rocky ground, among thorns, and on good ground. Only the seed that fell on good ground grew, yielding thirty, sixty, and a hundredfold.

Mark 4:1-20,
Matthew 13:1-23, and
Luke 8:1-15
as well as in the non-canonical Gospel of Thomas.

Target marketing is the process of identifying "good ground" and growing the brand on that ground.

Identification of & Communication with Your Best Prospects

Demographics

Gender, race, age, income, disabilities, mobility (in terms of travel time to work or number of vehicles available), educational attainment, home ownership, employment status, and even location (see geomarketing, below).

Psychographics

• Personality, values, attitudes, interests, or lifestyles.
• They are also called IAO variables (for Interests, Attitudes, and Opinions).

Examples:

• Gender is considered a demographic.
• Gender preference is considered a psychographic.

• "Asian" is considered a race, and therefore a demographic group.
• All people who love Asian food (regardless of race) would be considered a psychographic group. 

Remember James Carville's line about Pennsylvania:

"Philadelphia on the eastern end, Pittsburgh on the western end, and Alabama in the middle."

Important target marketing terms to know:

Generational Marketing

Marketing aimed at groups born between certain years who generally share the same attitudes, experiences and history.

Related term: “Cohorts:” A loosely defined group of individuals who were born relatively close to each other and share common experiences

• Depression & Pearl Harbor
• Kennedy Assassination, Vietnam War, Civil Rights Movement, Watergate
• 9-11, War on Terror, Greening?

Generation = roughly 30 years 

• Matures: Pre-1945. “Classic” values – hard work, conformity, afraid of computers, spending and debt. Trusted authority. Music: Big Band

• Baby Boomers: 1945-65. Often described as “self-assured” and “self-absorbed.” Distrust of authority. 

• Gen X: 1965-79. Well educated, self-reliant, distrustful of social institutions but socially tolerant, expect convenience. Reinventing concept of family. 

• Gen Y (Echo Boomers) 1979-95. Techno-savvy, relatively privileged, spend a lot (often with credit cards), generally upbeat and believed to be “team players.” Larger than X. 

• Gen Z or Millenials (1995-??) What will define it?

Target Marketing Tools and Terms

Multicultural Marketing

Formerly called “ethnic marketing.”

Example: an ad for a soul food product would be more likely to run on BET than on CNBC.

Geomarketing

Also called geographical segmentation. Designates consumers according to their location.

Generally speaking, geography is one of the most powerful determinants of consumer preference.

Examples:

• pick up trucks in Texas
• grits are popular in the South, but much less in the north.

MSA or Metropolitan Statistical Areas

Census data that studies metropolitan areas, allowing advertisers to segment their efforts by city/metropolitan size.

ADI or Area of Dominant Influence

A region where the population can receive the same, or similar, television and radio station offerings, and may also include other types of media including newspapers or Internet content.

City Size Rankings

Metro Size Rankings

San Antonio (7/30) vs. Pittsburgh (59/22)

Market Segmentation & Situation Analysis

1. Segmenting Your Market

Geographically, demographically, psychographically

• Global
• National
• Regional
• Cultural
• Lifestyle
 

Product User (heavy vs. light): the 80/20 rule

Niche

e.g, “Heart attack,” social networking

2. Target a segment

3. Position for that segment

• Define your USP, based on existing position of brand, competitors, money, match of creative

• Positioning examples:

o Ace hardward is the helpful place
o Dove soap is the moisturizing beauty bar
o Cheer is detergent for all temperatures

4. Communicate Your Positioning (Advertise)

Next Page: Brand Life Cycle: the Product Ad Spiral

Related Information: An Overview of Branding, Building Brand Equity, Integrated Brand Management

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