Targeted Marketing

What Is Targeted Marketing?

Targeted marketing is a marketing strategy which identifies an audience that is most likely to buy a product or service and subsequently creates a marketing campaign designed specifically to advertise said product or service to the target audience, using advertisements and promotional messages. This allows different companies to hone in on certain market segments, creating a “specialty” and possibly lowering competition with similar companies.

Why Is It Important to Have a Good Targeted Marketing Model?

Mass marketing is spread widely throughout the population and often misses the audience that is most likely to be potential customers. A good targeted marketing model will help on two fronts: identifying a product’s target audience, and creating a campaign that is tailor-made for the target audience. This will guarantee focused and precise marketing, which should raise profits. A dynamic model will allow the advertiser to determine if the target audience changes or if the marketing strategy fits the target audience so new audiences can be targeted or advertisements can be changed accordingly.

What Internal Data Should I Have for a Good Targeted Marketing Model?

Companies should primarily utilize records and statistics of past sales of their product or service across different market segments, which will help determine target audiences for their products. Additional data could include customer profiles, inventory analysis, production reports, cost analyses, marketing budgets, customer feedback and profit-and-loss statements.

What External Data is Essential for a Good Targeted Marketing Model?

Seeing as most companies are not monopolies in their respecting fields, competitor data, surveys and questionnaires are essential to perfecting a targeted marketing model.

What External Data May Prove Useful for a Targeted Marketing Model?/h3>
Additional useful external data could include big data analysis of broad market segments in social media outlets such as Facebook, Twitter, etc. Also, analysis of news and public records can indicate trends which have implications on the marketing strategy.

What Are the Main Challenges of the Targeted Marketing Use Case?

One challenge marketers face is an overload of data coming from social media and from the industry itself. Finding the specific data needed to analyze your product and target audience can be very challenging, leading to problems in defining target audiences and marketing campaigns. Additionally the dynamic nature of technology and marketing tools demands ever-changing and evolving marketing campaigns, to keep up with the needs and trends of different target audiences.

Interesting Case Studies and Blogs to Look Into

Target Marketing Mag: Covid-19’s Impact on Millenial and Gen Z Media Habits — And How Marketers Should Pivot
MarTechCube: 5 Game-Changing Facebook Ad Targeting Strategies

Tangible Examples of Impact

According to the research firm Aberdeen, companies that are identifying customer needs and wants through predictive analytics are able to increase their organic revenue by 21% year-over-year, compared to an average of 12% without predictive analytics.

10 Impressive Examples of AI in Marketing