Retargeting campaign and attracting new consumers

Retarget

A retargeting campaign is the best solution for adding new customers. Retargeting is a sort of automatic guestbook for your website. When a new visitor shows up, a tiny pixel loads on their browser, and later it helps by giving you an idea of what they’ve been up to while on your site.

Firstly, you’ll be able to find out pretty quickly which parts of your site are dead ends for visitors. Correcting those areas will create a smoother experience, resulting in guest that stay on your site longer.

Secondly, you’ll have an opportunity to advertise your brand to guests even after they’ve left your site. The obvious benefits of this include increased brand awareness and recognition, both of which are tremendously important to the success of a fledgling business.

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Segment your visitors

While a single segment is great, just imagine the results of separating your visitors into smaller, more specific groups with similar advertising needs. For example, users who have already visited your site and signed up for your service don’t want to be asked to sign up again. This will make your company seem pushy and less caring, both of which are bad for business.

Creating a separate pixel for your signup confirmation page can help you avoid that mistake and will keep your converted customers happy with your company.

Using calls to action

For your advertisements, calls to action are instructions for potential leads to follow in order to get them to your site, and they will provoke a more timely response. They are most effective when combined with landing pages that give your guests more information on the topic they just clicked. By using landing pages, visitors avoid long, difficult to comprehend, pages, instead they see a compact explanation of your product or offer. That’s not the only benefit of landing pages; they also provide an easy way to segment visitors who arrive by advertisement, which allows you to identify the effectiveness of your advertising.

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References

Corrigan, H, Craciun, G, & Powell, A 2014, ‘How Does Target Know So Much About Its Customers? Utilizing Customer Analytics to Make Marketing Decisions’, Marketing Education Review, 24, 2, pp. 159-166, Business Source Complete, viewed 27 May 2015, EBSCOhost

Ma, J, Yang, Y, Li, F, & Xie, J 2013, ‘An Approach to Determine Importance Degree of Targets in Customer Collaborative Products Innovation’, China Mechanical Engineering, 24, 16, pp. 2223-2230, Inspec, viewed 27 May 2015, EBSCOhost

Use the example to applying the STP Model

Step 1: Segment Market

The company’s organization, product or brand can’t be all things to satisfy all people. This is why you need to use market segmentation to divide your customers into groups of people with common characteristics and needs.
There are many different ways to segment the target markets. For example, we can use the following approaches:

Demographic – By personal attributes such as age, marital status, gender, ethnicity, sexuality, education, or occupation.
Geographic – By country, region, state, city, or neighborhood.
Psycho-graphic – By personality, risk aversion, values, or lifestyle.
Behavioral – By how people use the product, how loyal they are, or the benefits that they are looking for.

Example

The Adventure Travel Company is an online travel agency that organizes worldwide adventure vacations. It has split its customers into three segments.
Segment A is made up of young married couples, who are primarily interested in affordable, Eco-friendly vacations in exotic locations. Segment B consists of middle-class families, who want safe, family-friendly vacation packages, it makes easy and fun to travel with children. Segment C comprises upscale retirees, who are looking for stylish and luxurious vacations in well-known locations such as Paris and Rome.

Step 2: Target The Best Customers

Next, you decide which segments to target by finding the most attractive ones. There are several factors to consider here.

First, look at the profitability of each segment. Which customer groups contribute most profit to the company.
Next, analyze the size and potential growth of each customer group.
Last, think carefully about how well your organization can service this market.

Example

The Adventure Travel Company analyzes the profits, revenue and market size of each of its segments. Segment A has profits of $8,220,000, Segment B has profits of $4,360,000, and Segment C has profits of $3,430,000. So, it decides to focus on Segment A, after confirming that the segment size is big enough (it’s estimated to be worth $220,000,000/year.)

Step 3: Position Your Offering

In this last step, your goal is to identify how you want to position your product to target the most valuable customer segments.
First, consider why customers should purchase the product rather than those of the competitors. Do this by identifying your unique selling proposition to understand how each segment perceives your product, brand or service. This will help you determine how best to position your offering.

Next, Create a value proposition that clearly explains how your offering will meet this requirement better than any of the competitors’ products, and then develop a marketing campaign that presents this value proposition in a way that your audience will appreciate.

 

Positioning and Differentiation in Consumer Marketing

Consumers’ perceptions of products and brands are influenced by the marketing and promotional plan. Marketers must identify the key characteristics that are important to the target market and then ensure that their product stands out in the minds of the consumers as the best choice for purchase.

Car Shopping

Two college students walk into an auto show because they both need to buy their first car with the savings they have amassed through part time jobs. Every car manufacturer has their cars available for the students to examine and sit in. Both students have an image in their mind of the type of car they want to purchase: cool, fun, inexpensive and reliable. Most car makers realize that the younger demographic has different car needs than the other target markets.

Product Positioning

Car makers will position their affordable starter cars as having those attributes. A position is the place a product, company or brand occupies in consumers’ minds relative to the competition‘s offerings. Positioning is a process that affects potential customers’ perception of a brand, product or company. It is very important for marketers to realize that you can position a product in any manner that you want, but it does not ensure that the customer will see the product the way it is marketed.

How consumers perceive a brand affects product positioning
Marketing Positioning Car Qualities

For example, defunct car manufacturer Oldsmobile tried to make their cars cool again. They developed new car designs and came up with the slogan, ‘It is not your father’s Oldsmobile.’ No matter what the marketers tried to position their product as attractive to the younger generation, the process failed. Younger consumers could not get the image of older people driving large Oldsmobiles around town and to them it still made the product unattractive.

Product Differentiation

Positioning does assume that consumers are comparing products based on similar characteristics. Marketers must know what characteristics are important to their key target markets, and then position their product to fit those requirements. Our college student car shoppers have decided on fun, cool, innovative and affordable as their key purchasing characteristics. The brands that advertise these types of cars would be Kia, Scion and Subaru. These car manufacturers have positioned their cars as fun, cool and affordable.

For example, the Kia Soul has a very creative ad campaign that uses the ‘Party Rock Anthem’ and a bunch of hip-hop hamsters to position the car as cool. The company also offers an iPad app for the Soul. This use of carving a niche for a product (in this instance a car for young drivers) requires the use of product differentiation. This is a type of positioning strategy that Kia is using to distinguish their cars from the competitor’s in the market place. Kia wants the young driver target market to view that their car has features and offers much more than any of the competition.

Perceptual Mapping

Sometimes marketers need to grasp exactly where all of the competitors in the market place are viewed by consumers. A graphical way of representing two or more dimensions or variables that are represented in customers’ minds is called perceptual mapping. These dimensions can be used by product use, price, quality or attribute.

Example of perceptual mapping
Perceptual Mapping Example

For example, the local diner has spent over $400,000 adding a bar and sports club to its facility. The diner would like for consumers to now view their business as an upscale, club/bar place for dinner and not just a place to get breakfast. They have created a perceptual map that shows all of the local dining establishments based on the criteria dimensions of classy/distinctive through affordable on the x-axis and everyday through special occasion on the y-axis. Through the use of marketing research, the diner was able to get information from the town’s consumers on where they would place the dining establishment on the matrix.

(Source: http://study.com/academy/lesson/positioning-and-differentiation-in-consumer-marketing.html)

The curly pinks and cloudy blues of gender based marketing

Consumers need to be aware of gender based marketing and how this influences the market segments and the consumer psychology of today’s products. This is especially true for toys.

Many consumers are more knowledgeable these days about children’s toys and are on the hunt for specific characteristics of a toy (educational, awareness, development, safety), but before a toy is purchased it is usually wrapped in smoke and mirrors by marketers and on the shopping floor; which cleverly dictates in what isle your child is supposed to select their toy based on their gender.

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Consider the many toy isles of popular stores, you will usually find that these have been segmented according to gender. The toys for boys isles are full of blue packaging, trucks, cars and cricket bats, while the girls isles are populated with Barbie dolls and every shade of pink.

Some feel very strongly about this topic and have even called for a stop to gender based marketing. Two campaigns of thought include the UK Let toys be toys campaign and Australia No gender December campaign both believe that stereotypes limit thinking of our children. Some believe that this is an outdated concept and that we end up labelling our children.

While some products and large stores hold onto their traditional footing of gender based marketing, some organisations (with the use of clever marketing techniques) have moved to gender-neutral products. Toy makers know that by segmenting the market into demographic groups, they can sell more versions of the same toy. While one approach has been to sell the exact same product in a different gender-segment, the other approach is to market products around themes.

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What other gender based marketing techniques and approaches have you seen of late? Do you consider gender-neutral the way forward for your children? or are you more comfortable with traditional toys for boys and toys for girls approach? Do marketers dictate what we buy in the end? Does market segmentation work well in this space?

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Video – Hear from the end consumer

Is Woolworth’s targeting strategy Genius or Unethical?

Posted by: Mauricio Soto Henriquez and Esme Louise Russell
I must commend Woolworths on their genius marketing campaigns. Whilst their competitors are talking about their low prices and special offers aimed at their customers, Woolworths haven’t targeted their customers. They have targeted their Customers biggest influencers – their children.
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Having no children of my own I thought I was safe from being sucked into the persuasion to shop at Woolworths. Wrong I was – My friend’s 8 year old daughter is determined to collect all the Dominos in Woolworth’s current marketing campaign. She is recruiting everyone she can think of to help her reach her goal.
A few weeks ago I received a call from her which went a little something like this:
Katie Scarlett – Where do you currently shop? Coles or Woolworths?
Me – Coles, its closest to my house.
Katie Scarlett – Well I need you to shop at Woolworths and collect the Dominos for me. You need to spend over $20 so if you could please go there every day and send the Dominos to me please.
I now shop at Woolworths and always ensure I spend over $20 to be eligible to collect my Domino. Yesterday I needed Milk and apples but I left with not only those items but also the latest issue of Vogue, a block of chocolate and some body wash as I just HAD to collect my Domino.
Had I just gone to Coles would I have purchased all that? Definitely not. But Woolworths have now influenced where I shop and what I spend.
Is Woolworth’s strategy Genius or Unethical?
Advertisers spend billions of dollars each year trying to manipulate or persuade people into a consumer lifestyle and lately marketers started very cleaver campaigns targeting children due to the big influence the kids have over their parent’s purchases. There is evidence out there the children market can be segmented into 3 big markets, the direct money they spendmoney they influence and the future market hence all these marketing campaigns in place.
There is a research out there from Professor Sharon Beder (at the University of Wollongong) that clearly shows how CEO of company look at children, According to the CEO of Prism Communications, “they aren’t children so much as what I like to call `evolving consumers’.’ 
‘Advertisers recognise that brand loyalties and consumer habits formed when children are young and vulnerable will be carried through to adulthood. Kids `R’ Us president, Mike Searles, says “If you own this child at an early age… you can own this child for years to come.”’

As group we would like you to share your thoughts about this campaign and the controversial quotes expressed 

Targetting Chocolate

Marketing Management Blog T1 2015

by Anna Townsend and Sabrina Tjang

Let’s talk about chocolate. It soothes our cravings and gives a little kick in the day. It comforts us when we are down, just like a best friend.

The truth is Australians love confectionery. Each Australian consumes on average 6.7kg annually, making confectionery the most popular snack food. Chocolate makes up for 77% of all confectionery sales in Australia in a market worth $2 billion. link

Impulse purchases account for 47% of confectionery bought, and nearly 50% of all chocolate buyers fall within the 25 – 49 year age group. Women tend to buy more chocolate than men, but in most cases they are buying for their families. It has been found that men aged 35 – 49 are the top buyers of chocolate bars and blocks, usually for personal consumption. The Australian confectionery market continues to grow, with annual volume increasing 12.5% over…

View original post 743 more words

Marketing Strategies— targeting

The purpose of marketing is to increase a business’s competitive advantage. A competitive advantage in a more memorable and effective way to attract the consumers. Marketing strategies is a best way to increase the company’s success in terms of sales. Market dominance strategies will to increase a company’s dominance, or ability to beat out its competitors.

 A target market refers to the group of potential customers. In other way,  target markets are organized and specified according to a number of different factors. These factors include geography, relationship to the product, demographics, socioeconomic, behavior, and psychology. Now i will to introduce a simple example about  the geography to target market. Target groups who live in a cold place. A company that manufactures and sells winter apparel or equipment used for winter sports, such as skiing and snowboarding, would market to a target group consisting of people who live in areas that experience cold weather, or mountainous regions in which winter sports are very popular.

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When we studying at target market, we have to consider the psychology of potential customers. It includes studying the lifestyles, values, and overall attitudes of the consumers. When companies are marketing electronic products, such as televisions or video game consoles, they must thinking about how their potential customers want to spend their free time, in order to focus their advertising on people who are very interested in entertainment and leisure. So my other example is about the who is the potential customers.

Hasbro is a toy and board game companies, which have a very specific target market. Interestingly, toy companies have a balance between target market, which is parents and children. Their products’ advertise in a specific way, because not only children are interested in the toys, but also parents are willing to buy them. The target market, in terms of adults, includes people of a certain advanced age, since younger people are less likely to have children. Families with children tend to live in suburban areas rather than in large cities or metropolitan centers, so the target market probably also includes those people who live in suburban parts of the country or the world.

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