What is targeted marketing?
Targeted marketing is an approach that increases the likelihood of reaching the right audience for your brand. A campaign of this type identifies the demographics like to buy your products or services, and promotes your business directly to them. Identifying the specific groups that you want to cater to enables you to create a strategy that will directly appeal to them, in order to boost brand recognition, interaction, and eventually, sales. Marketing campaigns, as well as specific products or services, will then be created solely for these audience segments.
Who uses targeted marketing nowadays?
Brands that use the targeted marketing approach are usually those that offer specialized products or services. These products and services usually don’t belong to your typical “need” so convincing consumers to spend money on them would be a challenge. Your favorite coffee shop chain, for example, can be classified as a business that offers specialized products. It’s because there are cheaper alternatives if you’re just looking for a caffeine fix. That’s why they targeted the younger generation, including women in their early 20s who are looking for a place to hangout while sipping a good cup of coffee.
Is it suited for my small business?
You might think that an extensive campaign that involves targeted marketing will just be appropriate for big businesses and name brands with deep pockets. They need such campaigns especially when they’re testing new products or services, or are exploring to expand in another market. Well-known brands typically have a wide and diverse reach, so it is a must to narrow down to their target audience, or else it would be like blindly casting a net over a vast ocean. And because it is a way to efficiently use your marketing budget, targeted marketing can also be applied to startups and small businesses.
Is it worth it, considering my limited budget?
For a startup or small business, any exposure you can get for your brand will help bring in customers or at least increase engagement with potential clients. So even with a limited budget, setting aside a small chunk for marketing can help jumpstart your success. Targeted marketing may take more effort because of the research that you need to identify your target audience as well as the campaigns that work for them, but eventually, it will save you a ton because your campaigns will be more efficient. If you haven’t allocated any for marketing yet, perhaps it is time to consider doing so. With the help of the Internet, targeted marketing can now be achieved at a relatively lower cost.
Samples of well-known targeted marketing campaigns
Back in 2015, Coca-Cola brought back their “Share a Coke” campaign in the US, this time allowing people to buy their favorite beverages with their name on it. This was promoted on TV and on social media, encouraging people to post and share about sharing a drink with the person whose name appears on the can or bottle. No freebies or promotional pricing was involved, just a “personal” touch on their drinks.
Small businesses can use this as an example of an approach to reach their target audience without resorting to lowering prices or giving out free stuff. Coke targeted the audience that loves to “share” their stories online on social media, so giving them something to share about really boosted the brand’s engagement with consumers. The personal appeal enabled them to draw consumers away from their competitors, encouraging to buy a product not only for themselves, but someone else whose name appears on a bottle or can of a Coke product.
Another notable example of targeted marketing was by Kotex, back in 2012. Instead of a major marketing campaign, they reached out to 50 Pinterest influencers. These women had the right mix of virality, trendsetting, and activity in the platform and their reach were by the thousands. They gave them gifts, which almost all of them reciprocated by posting about it on their social platforms. This was a successful campaign for Kotex because the fans and followers of these 50 influencers are the brand’s target demographics. The social media activity that this campaign created was more than what you’d expect from reaching out to just a few people.
This is a perfect example of a budget-friendly approach to targeted marketing. By going through influencers, you’re assured that thousands of eyes and ears are focused on whatever campaign you’re doing. The reach and engagement generated are massive compared to what you’ll spend to reach out to just a handful of influencers. All you need is to create a content that would appeal to your target audience, but still align with what your influencers stand for.
Startups and small businesses can benefit greatly from targeted marketing because it provides an affordable way to engage customers, build relationships, and boost their brand efficiently. This could be a big step to make their small business grow, even globally. Couple this with a proper communication system for business, add some project management and collaboration tools, and the business is all set to grow and expand in the nearest future.
About the Author:
Francis Mansueto has been writing for more than a decade now, focusing on Digital Marketing in the last couple of years. He is currently in charge of writing web-optimized content for RingCentral, an industry-leading cloud phone systems provider. Francis is also a voracious reader, spending most of his free time immersed on fictional worlds. You can reach him through Twitter.