Podcast
Questions and Answers
What is one of the primary functions of customer channels?
What is one of the primary functions of customer channels?
Which aspect should a company consider when establishing customer relationships?
Which aspect should a company consider when establishing customer relationships?
Which demographic group is often cited as having the highest spending power in the U.S.?
Which demographic group is often cited as having the highest spending power in the U.S.?
What is a key characteristic of Baby Boomers in terms of their work habits?
What is a key characteristic of Baby Boomers in terms of their work habits?
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What is a primary characteristic of undifferentiated marketing?
What is a primary characteristic of undifferentiated marketing?
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Which factor can drive customer relationships?
Which factor can drive customer relationships?
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Which of the following is NOT an advantage of effective targeting in marketing?
Which of the following is NOT an advantage of effective targeting in marketing?
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Which targeting strategy focuses on highly specific customer interests?
Which targeting strategy focuses on highly specific customer interests?
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What do empathy maps help organizations achieve?
What do empathy maps help organizations achieve?
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What communication strategy is most effective for Baby Boomers?
What communication strategy is most effective for Baby Boomers?
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What is the first step in a targeted marketing strategy?
What is the first step in a targeted marketing strategy?
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What best describes 'sizable' as a characteristic of a target market?
What best describes 'sizable' as a characteristic of a target market?
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How can channels be integrated effectively with customer routines?
How can channels be integrated effectively with customer routines?
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What can be seen as a benefit of personalized ads in targeting?
What can be seen as a benefit of personalized ads in targeting?
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Which segment is NOT mentioned in the context of healthcare target markets?
Which segment is NOT mentioned in the context of healthcare target markets?
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What does 'definable' refer to in the context of target markets?
What does 'definable' refer to in the context of target markets?
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Which of the following is NOT considered a component of personal demographics?
Which of the following is NOT considered a component of personal demographics?
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What is primarily assessed in psychographic profiling?
What is primarily assessed in psychographic profiling?
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Which of the following criteria would a consumer likely consider most important when making a purchasing decision?
Which of the following criteria would a consumer likely consider most important when making a purchasing decision?
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Which family structure is indicated as likely to have more disposable income?
Which family structure is indicated as likely to have more disposable income?
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What does 'Customer Channels' encompass?
What does 'Customer Channels' encompass?
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Which psychographic attribute is characterized by a preference for new experiences and adventurous activities?
Which psychographic attribute is characterized by a preference for new experiences and adventurous activities?
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What is a key factor influencing the frequency of purchases?
What is a key factor influencing the frequency of purchases?
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When considering purchasing criteria, which of the following would be least relevant for consumers focused on convenience?
When considering purchasing criteria, which of the following would be least relevant for consumers focused on convenience?
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Study Notes
Business Plan Design: Targeting Buyers
- Undifferentiated marketing is when companies advertise to all customers using the same strategy, regardless of demographic differences.
- Targeted marketing is the opposite strategy, prioritizing advertising relevance and segmenting audiences based on shared traits.
- Customizing ads for each segment increases advertising relevance.
Targeting Advantages
- Effective targeting improves advertising performance across all business channels.
- Increased ad engagement rates lead to lower churn rates.
- Higher user retention rates result in greater average revenue per user (ARPU).
- Targeting the right user types increases likelihood of product or service engagement and positive user experiences (UX), potentially leading to word-of-mouth referrals.
Target Market
- Automobile: Owners/Drivers, Luxury, Economy, SUV, Van, Truck, Electric, Sports Car
- Restaurants: Restaurants, Fast Food, Fine Dining, Ethnic, Full Service/Sit Down, Fast Casual, Food Trucks, Buffet
- Healthcare: Healthcare, Wellness, Fitness, Urgent Care, Imaging, Elder Care, Pharmaceuticals
Target Market: Defining Target Customers
- A target market must be identifiable, distinctive, and clearly defined within the overall market.
- It must be definable (described and recognized) with clear characteristics and content.
- It should be meaningful (rooted in reality, values, experience).
- The target market should be sizable and measurable (quantifiable, big, how many).
- The target market should be reachable (means to communicate / influence / educate the market).
Personal Demographics
- Age, Gender, Occupation, Marital Status, Income
- Also include: Ethnic Group, Education, Household Members, Asset Ownership, Disposable Income
Target Market Characteristics
- Market research is needed to understand what publications / channels target customers use.
- Research who advertises in these channels and what those advertisements focus on.
- Understanding what customer needs / wants (products / services) are important.
- Analyze customer activities related to entertainment / recreation.
Target Market Lifestyle/Stage
- Family structure (dual income/no kids, single income/kids, etc.)
- Family/personal values
- Community involvement
- TV shows watched
- Hobbies/sports/recreation
- Political affiliations
- Professional credentials
Target Market Business Distinctions
- Business stage
- Trade associations
- Key products/services from supply chain
- Workforce
- Community involvement
- Business values/imperatives/competencies
Psychographic Profile Attributes
- Technically adept
- Trendy
- Conservative/Progressive
- Socially/environmentally conscious
- Family-oriented
- Hedonistic/adventurous
Purchasing Profile
- Occasion for purchase
- Purchase frequency
- Interval between purchases
- Amount purchased
- Motivation (loyal, price, brand, cause)
- Purchase decision (impulsive or methodical)
Purchasing Criteria
- Price
- Quality
- Brand
- Features
- Sale
- Packaging
Additional Purchasing Criteria
- Convenience of use
- Convenience of purchase
- Location
- Return policy (hassle-free)
- Credit policy
- Warranty
Target Market Activity
- Analyzing customer preferences can dictate marketing strategies and brand messaging. (e.g. Huggies focus on comfort for parents or babies)
Target Market: Additional Consumer Insights
- Boomers: The largest group of affluent consumers, born between 1946 and 1964. They should be advertised to using Facebook and not slang, using large fonts, captions on videos, and email/phone support.
- Procter & Gamble: Uses detailed personas to target specific niches for their products.
- Important Target Market Considerations: Target market definition is critical for developing effective strategies for attracting customers and providing relevant benefits. Poorly defined target markets can limit an effective marketing strategy.
Customer Channels (Summary)
- Communication, distribution, sales channels are fundamental to customer interactions.
- Crucial to providing products/services, creating awareness, and cultivating relationships.
- Channels address customer needs at every touch point within the purchase cycle.
Customer Relationships
- Defining the type of relationship the company wants to build with each consumer segment.
- Addressing how costly those relationships are during the sales process.
- Considering how customer relationships are integrated into the overall business model.
Empathy: Understanding Customer Needs
- Understanding and sharing the feelings, thoughts, and experiences of others.
- An empathy map is a powerful tool that can help analyze customer relationships, customer segments, and distribution channels.
Business Model Generation - Empathy Map
- Empathetic research helps identify customer needs (e.g., what do they want, think, feel) and address their needs, concerns, etc. via detailed observation and/or interviews.
- The data from an empathy map analysis can help businesses develop effective strategies in terms of marketing materials (e.g., copywriting, visual design) to engage and effectively communicate with customers.
Social Media Followership
- Consumers follow brands on social media to learn about new products, company news, promotions/discounts, and to be entertained.
Additional Topics
- Price sensitivity plays a critical role in customer purchasing decisions.
- Defining and thoroughly understanding a client base is imperative to effective marketing.
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Description
Explore the key concepts of targeted and undifferentiated marketing strategies in designing an effective business plan. Learn about the advantages of identifying target markets and how effective targeting can lead to better advertising performance and user engagement across different business channels.
