The document discusses defining the right target audience for a product. It notes that common mistakes companies make include trying to appeal to everyone (FOMO), assuming customers think like the founder, focusing only on needs rather than behaviors, using superficial demographic definitions, and failing to consider the competitive landscape. The document advocates narrowing in on a specific consumer group, understanding customers may differ from founders, including behaviors in definitions, and finding a target not fully met by competitors. Case studies of Patagonia and Honest Tea are presented.

1. What(is(Iterative(Insights™(Day?
Iterative(
Insights
InQcontext(
Learning
Collaborative(
Engagement
Multiple(
Consumer(
Touch(Points
Research(Principals(for(Better,(Faster(Marketing(Decisions
Learn more at:
digsite.com/blog/iterative

2. About%Your%Speaker
Amy%Elkes
Principal/Owner(of
Amy(Elkes(Consulting

3. Define&the&Right&Target&Audience&For&
Your&Product
Amy(Elkes,(Principal,(Amy(Elkes(Consulting

4. Why&is&finding&the&right&target&so&important?
• Aggressive(and(growing(competition
• Value(of(early(momentum
• Capabilities(of(digital(and(social(media(targeting(
• The(cost(of(getting(it(wrong(could(be(failure.

5. So,&why&do&so&many&companies&get&it&wrong?
• Several(common(mistakes(get(in(the(way(of(defining(the(perfect(
target(for(your(product(or(service:
1. FOMO
2. I(am(My(Consumer,(My(Consumer(is(Me
3. Need(=(Target
4. Superficial(Target(Definition
5. Wrong(Competitive(Set

6. 1.&FOMO
• Picking(a(target(does(not(meaning(excluding(the(rest(of(the(potential(
buying(universe
• Don’t(fall(into(the(trap(of(trying(to(be(all(things(to(all(people
• Example:(“The(snack(bar(for(everyone!”
Although(the(calories(are(low,((the(
amount(of(protein(is(not(competitive(
against(other(bars.(
8 Joe(P.
They(were(all(grainy(and(had(a(sandy(
texture.(They(all(seemed(overly(
processed(and(hard(to(recognize(what(
could(be(in(them.
= Chrissy(K.

7. Case&Study:&Patagonia
• Target:%Dirt(bags
• Buying%universe:
For nearly 40 years, Patagonia has prided itself on
selling high-quality, high-performance outdoor apparel
to dirt bags. Dirt bag is a term used affectionately
around the company offices. It describes the kind of
person who might organize an impromptu game of
hacky sack in the middle of an El Capitan ascent,
casually enjoy a bottle of beer while free soloing a sheer
face on Mount Arapiles, or hitchhike outside Tahoe
holding a cardboard sign reading Will belay for food!!!
- Slate.com, March 2015
Photo(credit:(Poppys8style.com
Photo(credit:(Patagonia.com

8. 2.&I&am&My&Consumer,&My&Consumer&is&Me
• Typically(true(only(for(very(small,(entrepreneurial(companies(and(
products
• Avoid(the(“focus(group(of(one”(mentality
• Example:(Organic(food
Early Adopter Current%Target%Consumer

9. 3.&Need&=&Target
• New(products(and(services(exist(to(fulfill(consumer/customer(needs
• But(needs(alone(do(not(define(targets
• Consumer(targets(with(the(same(“need”(often(require(different(
solutions
Target%Consumer%1 Target%Consumer%2
Need:%An(alternative(to(high(heels(88 comfortable,(yet(
stylish(shoes(I(can(wear(to(work(that(won’t(hurt(my(feet.

10. 4.&Superficial&Target&Definitions
• Target(definitions(often(fail(to(go(deep(enough
• Demographics(– Nielsen(statistics(should(not(be(the(yardstick(anymore
• Attitudes(– Hard(to(define(and(even(harder(to(verify
Target:%Female(Baby(Boomers(focused(on(healthy(living.

11. The&targeting&spec&too&often&left&out:&Behavior
• Addresses(the(gap(between(“what(I(say”(and(“what(I(do.”
• Unlike(attitude,(behavior(is(trackable
• Behavior8based(targeting(is(one(of(the(key(elements(of(Iterative(Insights.
Target:%Female(Baby(Boomers(focused(on(healthy(living:(Must(exercise(regularly,(
consume(a(daily(vitamin,(and(purchase(brands(such(as(Kashi,(Skinny(Pop,(and(
Vitamin(Water.

12. 5.&Wrong&Competitive&Set
• Think(carefully(about(the(competitive(set
• What(other(products(fulfill(a(similar(need?
• What(differentiates(your(target(consumer’s(need((or(ideal(solution)(
from(the(products(already(available?(
• Example:(Functional(coffee(drink

13. Case&Study:&Honest&Tea
• Target%Consumer%Profile:%Age(30865(•(Likely(to(live(near(
a(concentrated(urban(area(•(Likely(to(have(graduated(
college(or(have(an(advanced(degree(•(Likely(to(currently(
be(bottled(water(or(RTD(tea(drinkers,(occasionally(drink(
iced(cappuccino(•(Interested(in(running,(hiking(and(
outdoor(healthy(activities•(Agreed(that(they(wanted(
something(not(as(boring(as(water(but(didn’t(have(all(the(
“junk”(in(commercial(bottled(tea.(
From the start, our product was less sweet than what everyone else
was offering. And that was why we felt it was relevant, because
everything out there was much more like soda than it was like tea.
And it’s grown. Our differentiation has grown. So now everything
we offer is organic. A great deal of what we offer is also Fair
Trade-certified. We’ll continue to raise the bar and find new ways
to set ourselves apart. But we’re too small to compete directly with
the big companies on their terms. We have to do it on our terms.
- Seth Goldman, Co-founder, Honest Tea
Sources:(HonestTea.com,(Seth(Goldman(of(Honest(Tea:(The(‘Perfect(Ingredient’(for(Social(Impact,(Wharton.Upenn.edu

14. Defining&the&right&target&audience
• Don’t(be(afraid(to(home(in(on(a(specific(consumer(group.((
(Don’t(try(to(be(all(things(to(all(people.)
• Don’t(assume(your(consumer(thinks(like(you(do.
• Start(with(the(need,(but(don’t(stop(there.
• Include(behavior,(not(just(demographics(and(attitudes,(in(your(
target(definition.
• Give(thoughtful(consideration(to(the(right(competitive(set,(and(
define(a(target(that(is(not(fully(satisfied(by(competition.

15. Thank%you….%Questions?