Articles Tagged with: segmentation

Everclear Had It Right. Trying To Be Everything To Everyone Will See You Stumble & Fall.

“A choice to serve everyone, everywhere—or to simply serve all comers—is a losing choice.” – A. G. Lafley & Roger  L. Martin
 

1997 is arguably one the greatest years of Rock n Roll history.  Radiohead released OK Computer predicting a future techno-centric world we arguably now find ourselves in; while there were blindingly fantastic songs such as The Verve ’s ‘Bitter Sweet Symphony’, Foo Fighters ‘My Hero’, and Blur’s ‘Song 2’ amongst Aqua’s ‘Barbie Girl’.

Along with this alumni, Everclear released their hit single, ‘Everything to Everyone’ – which in 2018 and our era of Cambridge Analytica, and Micro or Mass Marketing, holds a pertinent message we can use for marketing, and in particular those brands that do as they sang – and ‘try to be everything to everyone’.

Last week I had a moment of serendipity.  After studying the theories and practices of audience segmentation, most notably around the schools of thought on ways to slice and dice markets, I met with the Chief Marketing Officer of a large sporting brand, and were chatting about their upcoming event.  There’s a lot of challenges that said brand faces in a crowded market, especially when Sydney-siders can be so fickle around sport, always jumping on bandwagons when they appear, and then just as quickly jumping off when things go sour.

With this in mind, I pressed the CMO on who their audience is, and what segments of the market they were looking to attract – to be met with ‘we’re targeting everyone’.

Now, brands clearly can’t target everyone – and brands don’t exist for everyone.  Unless of course you’re someone like Amazon – and even then an argument can be made against that notion.

There are 3 alarming issues for a brand that wants to ‘target everyone’ and doesn’t have a clear idea of market segmentation or who their target audience is.

1. Weak Messaging

If you’re trying to please everyone, you won’t have anything constructive, unique or relevant to convince people as to why your product or service is better than your competitors, and they should part with their hard earned cash for your product or service.

People are different.  We’re not the same, we have unique attitudes, behaviours and motivators.

If you aren’t talking to any of these particular characteristics or motivators, you’re going to find yourself down the list of people’s priorities when they think of your brand.

By trying to be everything to everyone, your message will end up being so weak and vanilla that customers at best won’t notice notice you, or at worst will seek out more specific and relevant brands for their needs.

2. Lack of Brand Promise & Strategy

Due to your messages being so vague and weak, your Brand Promise and ultimately the sense of your Brand itself is inevitably watered down in order to make it as appealing and broad as possible.

In turn, this affects what customers take away from your brand – which is confusion because you’re using fluffy terms, and buzz language that doesn’t meet an actual need that consumers have.

3. Wasted Budget

More often than not, as a business, you’re trying to maximise your profit, by ensuring that the cost it takes to acquire a customer, is less than the cost it takes to reach a customer. 

There is not a media channel in the world that will allow you to give a relevant message to a general audience.

You need to choose the right media, to get in front of the right person – at hopefully the right time.

Don’t waste your budget by going general – go specific, and look for the audiences that you can target with efficient media and use your budget efficiently.

The Solution

If you’re currently trying to target everyone, here’s 2 x things that you need to do immediately:

1. Audience Research

Get out there and understand your customers.  Whether you want to do focus groups, or online survey’s – the benefits of this are immeasurable and set you up for success.

I once had a client, who thought their existing customer didn’t purchase their clothing inventory more often was because their range wasn’t extensive enough.  After doing some research, we found out that the main reason they would purchase more often, was because they didn’t offer Free Shipping.

Turns out the client did offer Free Shipping, they just weren’t communicating it to their customers!

 2. Segment your Audience

Once you’ve done your research you can segment the market to find out which audiences are worth chasing. 

You’ll be in a position to understand the market as a whole, and it will be as if you’ve gained sight after being blind for your lifetime.

By trying to be everything to everyone, your brand and your marketing will be less for it.  Find your target markets, understand your segments, and you’ll avoid the spinning around, falling down, stumbling and falling that Everclear foreshadowed. 

BTW – Check out the class of ’97 – it’s a collection of the finest rock songs you’ll ever hear: https://www.spin.com/featured/best-alternative-rock-songs-1997

5 Questions To Establish Your Target Market

It’s interesting to hear the amount of times we have asked clients, ‘Who is your target market?’ and they have responded with either ‘everyone’, or ‘I don’t know’. It’s absolutely imperative to understand who you’re appealing to, in order to ensure that your marketing isn’t wasted and is leveraged to its full potential.

Only by answering some key questions about your target market will you be able to engage and communicate with your audience in a relevant manner.

If you can’t define who your target market is, the following questions will get you on your way.

1. Why Do I Need It?

In order to pry you away from tasks that seem more important for the day to day running of your company it’s imperative to understand why you need to invest time in research and insight.

A clear understanding of your target market will give you the tools to manage the communications and the media channels that you can use in your marketing strategy.  Primarily, you should understand your audience’s needs, wants, and how your product or service can benefit them.

Insight will also determine whether you need to create a brand campaign to generate awareness of your company, or a direct marketing campaign to increase your conversion rate.

2. Who Do I Target?

You will only ever be after two types of audience – people that have interacted and purchased your product (Existing Customers), and those that haven’t (Prospects).  It’s important to distinguish what and how you communicate to each audience, as your strategy will have different objectives for each.

If you don’t have any existing customers, you will certainly have an understanding of who you think they are, but to be effective you need to know who they are.  Get in front of your prospects whenever and however you can.  For clients in the past we have attended industry events, as well as cold calling, to survey and gather as much knowledge as we could.

Your existing customers provide a fertile environment to gather an understanding of your target market.  Working with one of our clients previously, the first thing we did was contact their existing customers with a short survey to paint a picture of who our clients existing audience was.

3. How Do I Get Insight?

Execution of the research is the most painstaking, but the most beneficial.  If you have existing customers you can use online surveys such as Polldaddy or Survey Monkey to create free online surveys and then send that to your customers asking about their experience.  If you have email addresses of existing customers or prospects, use these to send your online surveys out.  If you manage a number of social networks, advertise your online survey link and get the message out as much as you can.

To increase participation, you could offer a reward for participating in the survey, for example a financial or percentage discount off their next purchase, if it’s a wide ranging industry survey you could offer to provide them the results before publicising.

Industry events are not only a great way to meet influential people in your industry, but a chance to also meet potential customers.  We have previously had our team attend a clients networking event and we were able to capture relevant information on the people at the event for them.  Out of this, we were able to provide a greater level of detail around how, where, and what our client should be marketing.

4. What Do I Capture?

Before you even think about the questions to ask, you need to first determine what your objectives are, what is it that you want answered once you have all the results of your surveys? Should your questions focus on the demographics, psychographics, product or service, or potentially a mix of all?

Demographics provide a skeleton and an outline of your target market.  It contains general information such as age, gender, locality, education status, marital status.  Questioning deeper, include questions around their job title, employment status, and remuneration.

If demographics are an outline sketch of your target audience, psychographics are the colour between the lines.  Questions as far ranging from what newspaper they read, to what sports or the arts are they interested in, to what social media they use regularly will paint a picture of your audience

The real answer to a lot of your marketing questions will be around your product/service and how it impacts them, what benefits they see true value in, would they purchase again or recommend to a friend, did it meet expectations, and other questions to give you really informative feedback on how you should present your communications.

5. When Do I Get Insight?

Data is heavy, but insight is rich.  Once you have received and analysed your data, the insight that you pull out of it should paint a picture of your audience.   You will find recurring answers for each question set and from this you can start to develop ‘pen portraits’, or profiles of what a ‘typical’ customer looks like.

You will be able to start to group and collate a lot of the data into clusters and groups, and from this, drilling into the information you will find a number of customer segments that are ripe to target.  You should have an understanding of marketing messages, media channels, features, benefits, and even offers that may be applicable that will either enhance your branding or your direct marketing campaign.

 

If you need some insight or pen portraits of your target market, speak to us today!

Murmur

We are an integrated marketing communications agency.

Find Us At

223 Liverpool St, Darlinghurst NSW 2010 Australia (view in Google Maps)

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