TARGETING 101
If segmentation is about understanding the market, targeting is deciding where to play within it.
This is the start of strategy - you are choosing what, and more importantly, what not to do.
Here’s how it’s done...
Marketing Thread 1/n
If segmentation is about understanding the market, targeting is deciding where to play within it.
This is the start of strategy - you are choosing what, and more importantly, what not to do.
Here’s how it’s done...
Marketing Thread 1/n
Make sure to read the segmentation thread first.
Let’s continue with the fictional D2C DoggoTreats, with their organic SuperPooper dried dog food priced at $45.99, $10 less than other non-organic dog food brands.
Let’s continue with the fictional D2C DoggoTreats, with their organic SuperPooper dried dog food priced at $45.99, $10 less than other non-organic dog food brands.
But first, why do we need to target at all?
Why not just go after everyone in the market?
Because:
1) Most companies have limited budgets and resource constraints
2) Some customers are better than others
phvntom.com/mark-ritson-ta…
Why not just go after everyone in the market?
Because:
1) Most companies have limited budgets and resource constraints
2) Some customers are better than others
phvntom.com/mark-ritson-ta…
Few companies have the ability to truly reach 100% of category consumers, and some segments might not be worth pursuing.
So, who to target?
There are no right or wrong answers, but some choices will be A LOT better than others.
So, who to target?
There are no right or wrong answers, but some choices will be A LOT better than others.
This is the challenge of targeting: where is there easy money to be made?
To know this, we need to add some more data to our Dog Food market segmentation: DoggoTreat’s market share per segment.
This data should be part of your essential research.
ianbarnard.ca/post/essential…
To know this, we need to add some more data to our Dog Food market segmentation: DoggoTreat’s market share per segment.
This data should be part of your essential research.
ianbarnard.ca/post/essential…
Look at the updated segmentation map. Really look at it.
What is it telling you?
What is it telling you?
Digital Dog Lovers seem like the obvious target for DoggoTreats, but they already have 65% of those consumers in the smallest segment of the market.
If DoggoTreats wants long-term growth, they need to pick a different target.
If DoggoTreats wants long-term growth, they need to pick a different target.
IRL, this is why you need to understand the company’s overall goals and objectives for the year.
Are they chasing cashflow? Maximizing growth? Reversing declining sales?
Think about how each goal would suggest different targeting choices.
Are they chasing cashflow? Maximizing growth? Reversing declining sales?
Think about how each goal would suggest different targeting choices.
As it happens, DoggoTreats wants to gain overall market share, but slowly and sustainably.
Right now they don't have the $ to invest in a huge marketing campaign. Their media planner says she can reliably reach 500,000 households with their budget.
Right now they don't have the $ to invest in a huge marketing campaign. Their media planner says she can reliably reach 500,000 households with their budget.
It’s obvious that if DoggoTreats wants to become a major dog food player, they’re going to have to target in-store buyers at some point.
But in the meantime, they should probably go after Digital Owners for some easy short-term wins.
But in the meantime, they should probably go after Digital Owners for some easy short-term wins.
Note: Targeting all segments (the whole market) is an option. As is targeting multiple segments.
But is it the right one for DoggoTreats?
What would you do?
But is it the right one for DoggoTreats?
What would you do?
The last step in the marketing strategy process is positioning.
Lets look at how to position DoggoTreats for success.
Lets look at how to position DoggoTreats for success.
