Targeted Marketing: what it is and why it matters

You’ve just launched your business and you’re ready to conquer the world. But who is your offer targeting?

If you haven’t defined your target audience yet, it will be challenging to create a focused strategy that fully satisfies your users. Discover what targeted marketing is, how to do it, and why it’s important for your company.

This is why I suggest enrolling in a Digital Marketing Course Program, Web Analytics Course, and Inbound Marketing with Lead Generation Course. This will enable you to understand customer behavior analysis and enhance your sales performance.

What is targeted marketing?

Clearly defining the context in which you position yourself, and especially the target audience is the first step to take.

Customers are not all the same, as they have different needs and desires, whether expressed or latent, present or future. Understanding this aspect represents the subtle demarcation line between traditional marketing and targeted marketing.

Targeted marketing refers to the set of techniques used to divide your target market into distinct groups of buyers (audience targets) to identify those potentially interested in the company’s product or service.

 

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Difference between targeted marketing and traditional marketing

Traditional marketing is a form of one-way communication aimed at an undifferentiated audience of passive consumers.

When Henry Ford offered the Model T Ford, he summarized this strategy with the words “any color as long as it’s black”. The advantage is that this reduces costs, and lower costs lead to lower prices or higher profit margins.

However, the market’s heterogeneity and the proliferation of communication channels increasingly limit its effectiveness today. Continuing to use traditional marketing would, therefore, be a significant waste of resources, energy, and time.

On the contrary, targeted marketing is based on a deep understanding of your target market and the user group that constitutes it.

The advantage is the identification of a segment with characteristics that make it different from others, allowing the company to satisfy its needs, anticipate its desires, or create memorable experiences by developing a value proposition.

Marketing efforts, resources, and energy will thus be strategically directed toward that unique segment.

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Discover how to do targeted marketing with the STP technique

After identifying the peculiarities of targeted marketing, learn how to implement it with the STP technique, which consists of:

  • Segmentation: the ability to divide the market into different homogeneous groups internally and heterogeneous among themselves.
  • Targeting: selecting one or more market segments to address.
  • Positioning: the set of activities that will contribute to ensuring that the perception of the value of the product or service offered in the chosen market is as intended.

What is meant by market segment?

By segmentation, we mean the process of dividing the market into distinct subsets identified based on certain common characteristics. Each group (defined as a target) can be chosen as a market goal to reach and satisfy with a service or product.

The main methods used to segment the market are:

  • Demographic
  • Geographic
  • Psychographic

Demographic segmentation

This type of segmentation is widely used and is based on the demographic characteristics of consumers, such as age, gender, income, occupation, education level, and religion.

This is because such information is readily available in online databases, analyses, or statistics. The assumption underlying this method is that different groups of people, based on the variables listed above, exhibit equally different consumption patterns.

In reality, we know that each of us is different and has different needs, behaviors, and interests even if belonging to the same age or income group.

This type of segmentation, therefore, only describes the characteristics of individuals that make up the segment, without explaining their behavior.

Geographic segmentation

In addition to demographic variables, it is possible to add those related to the geographic area of the consumer, population density, urban center size, and climatic conditions.

This is geodemographic segmentation based on the assumption that consumer needs, interests, and preferences also vary based on the characteristics of the place they reside.

Psychographic segmentation

Completely different are the characteristics considered for psychographic segmentation that have gained prominence in recent years. No longer satisfied with the usual geodemographic criteria, researchers employ psychological concepts.

Interests, values, lifestyles, and attitudes. These are the variables considered to identify various consumer clusters, often sought within social networks or by working with questionnaires.

This makes it possible to obtain a clearer picture of the consumer, creating more effective marketing campaigns integrated into targeted and personalized strategies.

Targeting: what is it?

Following market segmentation, it is necessary to proceed with targeting. This indicates the process of identifying the right segment for which the company could create a value proposition.

targeted marketing examples

To make this assessment, however, several factors must be considered, namely, the target must be:

  • Accessible to the company and the business both in geographical and economic terms.
  • Defendable, the advantage the company will have within that segment must surpass that of competitors.
  • Profitable, meaning it must have an economic size such that the company will have a certain interest in targeting it.

Positioning

Finally, after a thorough analysis of the competition through the study of the positioning map, once the segment to target and direct the strategy toward has been determined, the company must carry out positioning.

This is how the product or service offered is positioned in the mind of the current or potential consumer and is closely related to several crucial factors, such as brand reputation, values, and image.

Defining positioning is crucial as it represents not only the advantage that the audience perceives from our offering but also how they compare it with competitors.

What is the purpose of targeted marketing?

Identifying the target segment is crucial for achieving targeted marketing objectives. The primary function of targeted marketing is to build a value proposition for the user, the so-called “Value Proposition”.

Among the models used to construct this, we will analyze the “Value Proposition Canvas”, better known as “business model canvas“.

 

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Business Model Canvas: a value proposition for your customers

The Business Model Canvas is a tool that, using the logic of visual thinking (the term canvas means canvas), allows for the identification and simplifying of complex concepts.

The model consists of two areas, one on the right, represented by a circle, representing the customer sphere, and one on the left, represented by a square, representing the company’s value proposition.

In the compilation, follow this procedure, start by filling in the circle, identifying the user’s needs, necessities, and desires, and then the square, responding to the various identified needs.

To do this, it will be important to ask as many customers as possible if the identified needs are truly perceived by them and if the proposed solutions are desired.

How to communicate your proposition on Facebook

After identifying the target and creating a tailored proposal, the company’s goal is to promote its proposition. The opportunities offered today by the digital world are truly numerous.

Discover how to advertise on Facebook, the social network that currently has almost two billion members.

To create advertisements, just follow these 7 steps:

  1. Create a Facebook page for your company;
  2. Access the ad management area;
  3. Choose the campaign objective;
  4. Target the audience;
  5. Determine budget, duration, and optimization;
  6. Select images and text for the ad;
  7. Place the ad.

You may be wondering how to target your customers. In reality, it’s very simple, just include demographic data for each ad, such as:

  • Location (country, region, province, city, ZIP code, address);
  • Age (any range between 18 and 65 years);
  • Gender (male, female, all);
  • Languages;
  • Sexual orientation;
  • Relationship status;
  • Education.

In addition to demographic data, you can also include behavioral data related to:

  • Buying habits or intentions;
  • Mobile device usage;
  • Habits;
  • Travel programs.

Facebook advertisements thus offer the possibility to choose your target audience much more accurately than cookie-centric advertising.

Conclusion

Focusing on specific market segments is a crucial stage in the marketing process. It signifies initiating tangible efforts to introduce the product or service to distinct target audiences.

The marketing mix and operational marketing strategies are contingent upon this targeting. Ultimately, selecting appropriate segments holds the key to the company’s success.

By directing attention towards specific segments with higher conversion potential, companies can optimize their marketing endeavors and allocate resources for maximum impact.

Hence, investing time in comprehensively understanding your target audience and tailoring your marketing approach accordingly is crucial – yielding benefits in increased brand visibility, heightened customer engagement, and ultimately elevated conversion rates.

Learn the art of targeted marketing and hit your business goals. Request a free strategic consultation today!

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