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Launch! Advertising and Promotion in Real Time, 2009a

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What Are the Properties of a Good Target?<br />

<br />

<br />

<br />

<br />

Measurable: Key variables easily (<strong>and</strong> accurately) identify <strong>and</strong> assess the target.<br />

Accessible: The target group must be reachable by advertis<strong>in</strong>g.<br />

Profitable: The target group must have sufficient size, will<strong>in</strong>gness to buy, <strong>and</strong> ability to pay.<br />

Dist<strong>in</strong>guishable: The target group must provide a clearly differentiated segment <strong>in</strong> terms of<br />

percentage of potential customers <strong>and</strong> coherence of response to potential advertis<strong>in</strong>g messages.<br />

Dig Deeper<br />

In 2007, Japanese auto maker Suzuki began aggressively target<strong>in</strong>g a new segment: female car buyers <strong>in</strong><br />

India who now have the <strong>in</strong>come to buy their own vehicles due to India’s economic boom. The carmaker’s<br />

Zen Estilo (Estilo means “style” <strong>in</strong> Spanish) sells for less than $8,000 <strong>and</strong> comes <strong>in</strong> eight colors, <strong>in</strong>clud<strong>in</strong>g<br />

“purple fusion,” “virg<strong>in</strong> blue,” <strong>and</strong> “sparkl<strong>in</strong>g olive.” For a more modern look, Suzuki gave the car a twotone<br />

dashboard <strong>and</strong> a front grille design that makes the little car look like it is smil<strong>in</strong>g. Style-conscious<br />

drivers can also add rear spoilers, side skirts, <strong>and</strong> extra colors to the body. Many of Suzuki’s foreign<br />

competitors ignored this market because they chose to focus on sell<strong>in</strong>g mid- to high-end vehicles. [1]<br />

SS+K Spotlight<br />

While a lot of readers visit msnbc.com, not all are News Explorers. Remember, the News Explorer is the<br />

target that msnbc.com <strong>and</strong> SS+K determ<strong>in</strong>ed was the best target for the br<strong>and</strong><strong>in</strong>g campaign.<br />

Behavioral Target<strong>in</strong>g: Advertisers Know What You Like (Like It or Not)<br />

The STP process is evolv<strong>in</strong>g rapidly as new advances <strong>in</strong> technology enable advertisers to identify <strong>and</strong><br />

reach consumers where they live, work, <strong>and</strong> especially surf (onl<strong>in</strong>e).<br />

Today, companies def<strong>in</strong>e <strong>and</strong> manage f<strong>in</strong>er <strong>and</strong> f<strong>in</strong>er segments. In the past, segments had to be broad<br />

because it was difficult to reach f<strong>in</strong>er-level segments <strong>and</strong> because such f<strong>in</strong>e-gra<strong>in</strong> data were not available.<br />

Now, companies can process terabytes of data on customers, <strong>and</strong> new ad channels (such as keyword<br />

advertis<strong>in</strong>g on the Internet) allow companies to reach smaller segments, down to segments of one (yes,<br />

like you).<br />

These three factors fuel the accelerat<strong>in</strong>g trend of target<strong>in</strong>g small, very well-def<strong>in</strong>ed segments:<br />

<br />

<br />

Grow<strong>in</strong>g volume of data on customers<br />

Ris<strong>in</strong>g use of computers <strong>and</strong> analytic software<br />

Saylor URL: http://www.saylor.org/books<br />

Saylor.org<br />

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