ENT4114 Business Plan Design Targeting Buyers PDF

ENT4114: Business Plan Design Targeting Buyers Targeting Undifferentiated marketing is when marketers approach advertising for all customers with the same strategy, regardless of any differences in demographics. On the other hand, a targeted marketing strategy, also known as a “target...

ENT4114: Business Plan Design Targeting Buyers Targeting Undifferentiated marketing is when marketers approach advertising for all customers with the same strategy, regardless of any differences in demographics. On the other hand, a targeted marketing strategy, also known as a “targeting strategy,” is the exact opposite. Targeting in marketing means prioritizing high advertising relevancy by: - Defining a target audience and segmenting that audience based on common traits. - Customizing ad sets for those segmented groups. Targeting Advantages While targeting principally takes place when an advertiser sets up a campaign, the true benefit of targeting effectively should be felt across the whole of the business, such as: - Improved performance across advertising channels - Increased ad engagement rates - Lower churn rates - Higher user retention rates - Greater average revenue per user (ARPU) Personalized ads increase the likelihood that the right types of users for a particular product or service will engage - Also more likely that the right that they will share their positive UX with others through “word of mouth” Target Market Market - Automobile Owners/Drivers Segment - Luxury - Economy - SUV - Van - Truck - Electric - Sports Car Target Market Market - Restaurants Segment - Fast Food - Fine Dining - Ethnic - Full Service/Sit Down - Fast Casual - Food Truck - Buffet Target Market Market - Healthcare Segment - Wellness - Fitness - Urgent Care - Imaging - Elder Care - Pharmaceuticals Target market who wants to buy this product? who will buy this product? Targeting Strategies Undifferentiated - Mass Marketing (Most commercials) Multisegment - Differentiated for different segments (Toyota vs. Lexus) Concentrated - Niche marketing (focused on a particular area of interest) Micro-targeting - Hyper personalization (ads that follow you around the internet) Target Market  Target is a distinctive, identifiable member-discerned to exist within the market  Definable - Can be described, identified and recognized by distinctive features and characteristics - Will have tangibility, discernible content  Meaningful - Attributes which are rooted in reality; real values associated with experience  Sizable - Measurable; quantifiable - How big, how many?  Reachable - There is a way, a means by which the target can be influenced, connected, educated and exposed to your product or service Personal Demographics Not just:  But also: - Age – Ethnic Group - Gender – Education - Occupation – Household Members - Marital Status – Asset Ownership - Income – Disposable Income Target Market Characteristics - What do they read? (publications, channels) - Who advertises in those channels? - What are the articles about? - What kind of people or businesses need or want your products or services? - What do they do for 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 Level Distinctions - Business Stage - Trade Associations - Key Products/Services from supply chain - Workforce - Community Involvement - Business values/imperatives/competencies Target Market Psychographic Profile Attributes - Technically adept - Trendy - Conservative / Progressive - Social / Environmentally conscious - Family oriented - Hedonistic/Adventurous  Target Market Purchasing Profile - Occasion for purchase? - Frequency of purchase? - Interval between purchases? - Amount purchased? - Motivation: loyal, price, brand, cause - Decision to purchase? Impulsive or methodical  Target Market Purchasing Criteria - Price - Quality - Brand - Features - ‘Sale’ - Packaging Purchasing Criteria  Price Convenience of use  Quality Convenience of purchase  Brand Location  Features Return Policy (hassle free)  ‘Sale’ Credit Policy  Packaging Warranty Target Market Activity  Customer Channels Communication, distribution, and sales Channels comprise a company's interface with customers. Channels are customer touch points that play an important role in the customer experience  Customer Channels Channels serve several functions, including: - Raising awareness among customers about a company’s products and services - Helping customers evaluate a company’s Value Proposition - Allowing customers to purchase specific products and services - Delivering a Value Proposition to customers - Providing post-purchase customer support Customer Channels Questions to be answered: - Through which Channels do our Customer Segments want to be reached? - How are we reaching them now? - How are our Channels integrated? - Which ones work best? - Which ones are most cost-efficient? - How are we integrating them with customer routines? Customer Relationships Describes the types of relationships a company establishes with specific Customer Segments A company should clarify the type of relationship it wants to establish with each Customer Segment. - Relationships can range from personal to automated. Customer relationships may be driven by the following motivations - Customer acquisition - Customer retention - Boosting sales (upselling)  Customer Relationships Questions to be answered: - What type of relationship does each of our Customer Segments expect us to establish and maintain with them? - Which ones have we established? - How costly are they? - How are they integrated with the rest of our business model? Empathy What is empathy? - Understanding, being aware of and vicariously experiencing the feelings, thoughts and experience of another. An Empathy Map can help calculate the details regarding customer relationships, customer segments, and distribution channels. Boomers Generation born between 1946 and 1964 Largest holders of wealth in the U.S. “Generation of towering achievement and modest demeanor, a legacy of their formative year when they were participants in and witnesses to sacrifices of the highest order.” As of 2021, Boomers had stockpiled a record $35 trillion and account for the highest spending. Boomers are retiring at a record-breaking pace - Larger among those with less education But also staying in the labor force longer than ever seen before Largest untapped potential as both customers and users of products Boomers 1. Don’t use slang 2. Use Facebook 3. Provide useful information 4. Create compelling videos (and caption them) 5. Understand the demographic 6. Don’t use the word “old” or “elderly.” 7. Make sure your content is accessible – large fonts, easily viewed 8. Have email/phone support options Target market Price Sensitivity the role price plays in the decision to purchase relative to other criteria Target market “customer segmentation is critical to providing the right benefits (products and services) to the right customer..." Target market unfortunately, entrepreneurs define (identify) their customer segments too broadly...” -Kathleen Allen Conclusion Professor Roberts Email: [email protected] Office: 144 RSB Conclusion Professor Roberts Email: [email protected] Office: 144 RSB How to Sell Anything