“We need a better targeting strategy.” Most CMOs and marketing executives have uttered these words many times during their careers. Their sentiments reflect the desire for deeper information about the needs and wants of consumer to help drive marketing and advertising efficiency.
In the most simplified sense, targeting strategy development typically starts with an external, survey-based segmentation of the market. Marketers then choose the segments that offer the most opportunity and determine the products and services to offer each segment.
Starting with external market segmentation may be an acceptable path for start-ups, devoid of legacy customers, products and brand equity, but established and growing brands risk driving their efforts far afield by segmenting and targeting based primarily on external market insights.
Unintended consequences of outwardly-oriented targeting strategies include:
Established and growing brands risk driving their efforts far afield by segmenting and targeting based primarily on external market insights.”
Savvy marketers have learned that the best path forward features a fully internalized analysis before pushing out a well-integrated segmentation. A targeting strategy should then become an additive refinement to the brands, products/services, messaging platforms, and corporate/employee cultures that have already been built and been successful. It shouldn’t be something that forces businesses away from their intrinsic make up and the core products/services that have defined their past successes.
Successful inside-out segmentation and targeting strategies include:
Savvy marketers have learned that the best path forward features a fully internalized analysis before pushing out a well-integrated segmentation.”
Most importantly is the choice of a targetable segmentation research methodology. Radius performs 30+ strategic segmentations annually for top global brands.
Want to learn more about creating a more meaningful targeting strategy?