Finding Your True Audience

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Lecture 10 of my Interactive Regional and Global Marketing course. This lecture covers market segmentation and types of customers.

Lecture 10 of my Interactive Regional and Global Marketing course. This lecture covers market segmentation and types of customers.

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  • 1. Finding
Your
True
Audience
 Targeting
the
Right
Customer
at
the
Right
Time
with
the
Right
Media
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 2. An
online
users
sees
more
than
 1,800
ads
per
day,
which
is
an
 increase
of
more
than
250%
 since
2004.
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 3. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 4. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 5. How
often
do
you
use
the
internet
to
research
before
you
purchase?
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 6. Which
type
of
ads
influence
you
more
as
a
potential
buyer?
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 7. 9
Need
to
Knows
  Revenues
are
still
relevant
 –  Collect
information
about
customers
to
establish
how
 much
cash
money
they
bring
to
your
table
  Happiness
is
contagious
 –  Focus
on
happy
customers
  Price
sensitivity
is
NOT
a
good
thing
 –  Don’t
make
your
market
position
about
price
 –  When
Mickey
Drexler
took
over
a
CEO
of
J
Crew,
he
was
 looking
for
customers
willing
to
pay
more
for
well‐made
 clothing
and
increased
revenue
170%
in
the
first
5
years
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 8. 9
Need
to
Knows
  The
bigger
the
problems
the
better
 –  The
bigger
the
problem
your
brand
can
solve,
the
bigger
 the
market
response
 –  In
the
early
days
of
the
internet,
AOL
went
after
people
 interested
in
getting
online
but
not
willing
to
do
it
alone
 –  As
a
result,
30
million
people
signed
up
and
they
became
 4th
on
the
list
of
events
that
shaped
the
first
25
years
of
 the
web
  Be
on
the
lookout
for
something
new
 –  Introducing
new
products
and
services
can
generate
 organic
growth
companies
crave
 –  Focus
on
your
customers
that
are
most
interested
in
new
 innovations
from
your
brand
to
generate
bottom
line
 growth
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 9. 9
Need
to
Knows
  Out
there
advocating
for
your
brand
 –  The
greater
the
level
of
influence
a
buyer
has
among
their
 social
networks
and
word
of
mouth
marketing,
the
more
a
 brand’s
marketing
ROI
will
benefit
  A
hub
with
lots
of
spokes
 –  The
more
active
and
engaged
a
customer
is
with
different
 social
media,
the
more
valuable
they
can
be
to
your
brand
 –  Ford
Motor
Co.
picked
out
100
twenty‐something
YouTube
 storytellers
who’d
developed
a
fan
community
of
their
 own
and
gave
them
a
Fiesta
for
6
months
 –  Each
month
they
share
their
experiences
with
their
 communities
via
YouTube,
Facebook,
twitter
and
Flickr
 –  Ford
received
50,000
requests
for
information
and
sold
 10,000
units
in
the
first
6
days
of
sales
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 10. 9
Need
to
Knows
  Distinctive
needs
and
wants
 –  The
more
similar
and
predictable
a
target
group’s
needs
 and
wants,
the
easier
it
is
to
develop
compelling
 positioning
and
messaging
  Meaningful
to
traditional
and
digital
decision
makers
 –  Get
a
sense
of
how
high‐value
customers
use
traditional,
 digital
and
social
media
communications
throughout
the
 pre‐
and
post‐purchase
process
 –  Understand
how
the
like
to
interact
with
a
brand
within
 different
communications
channels
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 11. What
Is
Equity?
 Building
Customer
Equity
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 12. What
is
Customer
Equity?
  A
firm
is
only
as
good
as
its
customers
think
it
will
be
the
next
 time
they
do
business
with
them
  Customer
Equity
is
made
up
of
3
parts
 –  Value
Equity
–
a
customer’s
objective
evaluation
of
the
 brand’s
offering

 –  Brand
Equity
–
a
customer’s
subjective
view
of
the
brand
 and
its
offerings
 –  Retention
Equity
–
a
customer’s
view
of
the
strength
of
 the
relationship
between
them
and
the
brand

http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 13. Value
Equity
  A
customer’s
objective
assessment
of
the
utility
of
a
brand
 based
on
perceptions
of
what
is
given
up
for
what
is
received
  What
drives
value
equity
for
the
customer?
 –  Quality
–
What
is
the
value
of
the
brand
offerings?

 –  Price
–
How
attractive
is
the
price?

 –  Convenience
–
How
easy
is
it
to
do
business
with
the
 brand?

http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 14. Brand
Equity
  The
customer’s
subjective
and
intangible
assessment
of
the
 intangible,
above
and
beyond
its
objectively
perceived
value
 –  This
is
determined
by
the
brand’s
marketing
strategy,
 tactics
and
influence
over
the
customer
through
life
 experiences
and
associations
with
the
brand
  What
drives
brand
equity?
 –  Building
awareness
and
attractive
customers
 –  Building
emotional
connections
with
customers
 –  Reminds
customers
to
repurchase

http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 15. Retention
Equity
  The
tendency
of
the
customer
to
stick
with
a
brand
above
and
 beyond
the
customer’s
objective
and
subjective
assessments
 of
the
brand
 –  Focuses
on
the
relationship
between
the
customer
and
 brand,
based
on
actions
taken
by
the
brand
and
the
 customer
to
establish,
build
and
maintain
a
relationship
  What
drives
retention
equity?
 –  Loyalty
programs
(frequent
purchases/rewards
programs)
 –  Special
recognition
and
treatment
programs
 –  Affinity
(emotional
connection
programs)
 –  Community
programs
 –  Knowledge‐building
programs
(workshops
and
seminars)
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 16. Audience
targeting
can
identify
the
best
 consumers
for
a
specific
ad
or
campaign
 and
can
be
used
to
effectively
reach
 sales,
acquisition
and
branding
goals.
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 17. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 18. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 19. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 20. The
Ingredients
of
Targeting
 What
are
people
looking
for
 – Search
Engine
information
 Interests
 – Content
of
articles
viewed
 Where
They
Go
 – Pages,
Sections,
Sites
 What
They
Say
About
Themselves
 – Income
ranges,
Gender,
City
 Tools
They
Use
 – Calculators,
Configurations,
 Comparisons
 Offline
Data
 – Transactional,
Affinity,
 Psychographics
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 21. Audience
Targeting
 Targeting:
The
process
of
identifying
segments
of
similar
users,
and
 incorporating
them
into
the
ad
delivery
decision
 Behavioral
Targeting:
The
process
of
identifying
patterns
of
user
 interactions,
and
incorporating
them
into
the
ad
delivery
decision
 Interaction Recency Frequencyhttp://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 22. What
is
Behavioral
Targeting?
  A
method
used
by
online
advertisers
to
increase
the
 effectiveness
of
a
campaign
  Uses
information
collected
about
an
individual’s
web
 browsing
behavior
to
select
the
advertisements
to
display
to
 that
individual
  Allows
for
the
displaying
of
ads
that
are
more
relevant
to
the
 interests
of
the
individual
viewing
a
particular
page
  Because
of
this,
it
is
believed
that
this
type
of
targeting
helps
 advertisers
deliver
their
messages
to
the
individuals
most
 likely
to
be
influenced
by
them
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 23. How
Behavioral
Targeting
Works
 Tag
 Segmentation
 Behavioral
Targeting
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 24. Why
Does
It
Work?
  Reach
and
identify
qualified
audiences
based
on
their
 behaviors,
interests
and
habits
  Target
relevant
ads
to
engaged
consumers
throughout
their
 purchasing
cycle
  Improve
online
advertising
performance,
reduce
waste
and
 increase
ROI
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 25. At
emagine,
we
work
with
2
 internationally
respected
firms
 for
audience
segmentation.
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 26. VisualDNA
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 27. The
VisualDNA
Customer
Profile
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 28. AudienceScience
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 29. The
AudienceScience
Customer
Profile
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 30. Understanding
Market
Segmentation
 Learning
How
to
Break
Down
Your
Customer’s
Into
Groups
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 31. Market
segmentation
is
the
process
that
 companies
use
to
divide
large
markets
into
 small
markets
that
can
be
reached
more
 efficiently
and
effectively
with
products
and
 services
that
match
their
unique
needs
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 32. Market
Segmentation
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 33. Market
Segmentation
Divides
the
market
 Divides
the
market
into
different
 into
groups
based
on
geographical
units
 variables
such
as
such
as
nations,
 age,
gender,
family
regions,
states,
 Geographic
 Demographic
 size,
income,
counties,
or
cities
 segmentation
 segmentation
 occupation
and
 education
Divides
buyers
into
 Divides
buyers
into
different
groups
 Psychographic
 Behavioral
 groups
based
on
based
on
social
class,
 segmentation
 segmentation
 their
knowledge,
lifestyle,
or
 attitudes,
uses,
or
personality
traits
 responses
to
a
 product
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 34. How
Do
We
Market
To
These
Segments?
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 35. Marketing
Segmentation
 New
vs.

 4
Key
 8
Major
 16
Visitor
 All
 Returning
 Products
 Markets
 Personas
100%
of
visitors
 100%
of
visitors
 1
segment
=
all

 16
segments
=
all

http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 36. Market
Targeting
 Mass
 Segmented
 Niche
 Local/Individual
Undifferentiated
 Differentiated
 Concentrated
 MicroMarketing
 Marketing
 Marketing
 Marketing
Targets
the
 Targets
several
 Targets
a
small
 Practice
of
whole
market
 different
market
 share
of
a
large
 tailoring
with
one
offer
 segments
and
 market
 products
and
 designs
separate
 marketing
Mass
marketing
 offers
for
each
to
 Limited
company
 programs
to
suit
 achieve
higher
 resources
 the
tastes
of
Focuses
on
 sales
and
 specific
common
needs
 stronger
position
 Knowledge
of
 individuals
and
rather
than
 the
market
 locations
what’s
different
 More
effective
 and
efficient
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 37. Mapping
our
Data
to
Sellable
Segments
 View
content
 Interest
 View
product
information
 Life‐stage
 View
ad
 Lifestyle
 Click
on
ad
 Intent
 Purchase
something
 Behavior
 Search
for
something
 Demography
 Attend
an
event
 Provide
information
about
themselves
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 38. Mapping
our
Data
to
Sellable
Segments
 Interest
 Life‐stage
 Active
Travelers
 Lifestyle
 Intent
 Affluents
 Behavior
 Demography
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 39. Understanding
How
Targeting
Works
 General
Testing

 Segment
Testing

 Targeting
 Profile
Targeting
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 40. Results
from
Mass
Marketing
 Price
 Direct
Sales
 Fill
by
ad
networks
 Volume
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 41. Results
from
Market
Segmentation
 Price
 Direct
Sales
 Audience‐based
selling
 New
Revenue
 Fill
by
ad
networks
 Volume
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 42. Results
from
Audience
Targeting
 Price
 Direct
Sales
 Audience‐based
selling
 New
 Revenue
 Fill
by
ad
networks
 Volume
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 43. Know
Your
Customer
Types
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 44. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 45. The
Resistant
Customer
  Mindset:
Hates
your
company
and
 holds
deep
resentment
for
your
brand
  Behavior:
 – Will
spread
negative
word
of
 mouth
wherever
possible
 – Took
their
experience
with
your
 brand
personally
and
is
looking
for
 revenge
 – Will
defect
to
your
competitor
first
 chance
they
get
  Loyalty:
Zero
  Possibility
of
Defection:
Extremely
High
 (you
can’t
save
this
group)
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 46. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 47. The
Indifferent
Customer
  Mindset:
Sees
your
company/product/ service
as
nothing
more
than
a
 commodity
  Behavior
 – Will
always
try
to
get
lower
prices
 to
the
point
of
near
zero
margin
 – They
will
promise
volume
or
future
 business,
but
see
little
unique
 value
in
your
offering
 – Always
willing
to
walk
away
from
 the
sale
because
they
have
other
 options
available
  Loyalty:
One
  Possibility
for
Defection:
Very
High
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 48. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 49. The
Acceptant
Customer
  Mindset:
Expects
your
customer
to
 provide
the
maximum
of
what’s
asked
 and
nothing
more
  Behavior:
 – Doesn’t
think
of
your
brand
until
 absolutely
necessary
 – Comes
to
you
because
you
have
 become
a
habit
or
more
 convenient
choice
 – Maybe
aware
of
other,
better
 options,
but
simply
hasn’t
made
 the
effort
to
pursue
them
  Loyalty:
Two
  Possibility
for
Defection:
High
 – Customer
expectations
can
 outpace
what
you
provide
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 50. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 51. The
Preferential
Customer
  Mindset:
Has
grown
to
like
your
brand
 and
tends
to
understand
the
unique
 value
that
you
provide
  Behavior:
 – Most
of
us
make
the
mistake
of
 making
this
customer
type
the
top
 of
our
customer
pyramid
 – When
given
a
choice,
they
will
 probably
continue
to
use
your
 brand
 – Very
aware
of
industry
trends
and
 can
surprise
by
defecting
if
you
 have
not
given
them
benefits
or
 raised
the
bar
on
service
or
 innovation
  Loyalty:
Three
  Possibility
for
Defection:
Somewhat
 High
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 52. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 53. The
Evangelist

  Mindset:
The
pinnacle
of
the
customer
 relationship
and
would
buy
anything
 you
offer
  Behavior:
 – They
tell
everyone
they
know
 about
your
company
 – Mentions
how
satisfied
they
are
 even
in
casual
conversations
 – Your
brand
has
become
part
of
 their
life
 – Finds
personal
meaning
with
your
 brand
 – Worth
their
weight
in
gold
because
 they
do
more
to
grow
your
 business
than
any
ad
campaign
  Loyalty:
Four
  Possibility
for
Defection:
None
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 54. Calculating
Customer
Lifetime
Value
 What
is
a
customer
worth?
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
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Enabled

  • 55. Customer
Lifetime
Value?
  Customer
Lifetime
Value
(CLV)
is
how
we
determine
what
a
 customer/client
is
worth
over
the
lifetime
of
their
relationship
 with
the
brand
  This
is
difficult
to
calculate
for
consumer
goods,
but
very
easy
 for
service
based
and
financial
services
brands
  What
we
are
looking
to
understand
is
which
customers
are
 worth
keeping
as
clients
and
which
should
be
let
go
to
 increase
profitability
  This
may
seem
like
a
dirty
way
to
determine
how
much
work
 you
do
to
maintain
client
relationships
but
it
is
a
requirement
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 56. http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled

  • 57. New
Customer
Valuation
http://emagine‐group.com
 Experience
Focused,
Socially
Active,
Digitally
Enabled