Being the first and foremost important step in any marketing campaign, targetting and positioning are the very basics that must be mastered. It is the step of defining who our customers are and as whom we want to present ourselves to customers.
For targeting, we look at four sets of customer characterisitcs: demographics, geodemographics, psychographics and behaviorgraphics. The suffix “graphics” here means measurable characterisitics.The more difficult and specific targetting our marketing is, the more effective it is. Below is the graph presenting these 4 customer characteristics according to their ease of measurement (how easy to obtain data of the characteristics of our customers) and their predictability (how accurate that such customer characteristics can reveal about consumer choice behavior).
As shown in the graph above, behavioraphics is the targetting set most difficult to determine exactly, but once able to, it will create high predictability of our consumer choice behavior. In contrast, easy-to-measure characteristics such as demographics and geodemographics can be determined easily, but cannot ensure that our marketing can actually reaches the right customers.
The following table describes possible segments of a market. This can be a very useful source for you to start your targeting task.
In order to deetermine which market to target, we have to evaluate our target market by the following criterias (MAD ASs)
- Measurable: Size, purchasing power, and profile of segment
- Accessible: Can be reached and served
- Substantial: Large and profitable enough to serve
- Differentiable: Respond differently
- Actionable: Effective programs can be developed
For easier understanding of the MAD Ass evaluation, you can look at these below alternative questions expressing the above criterias in much more simple and easily processed forms. I call it the 8-question checklist to evaluate your target market.
If done all, congratulations! You have completed our first important basics of any Marketing activities: targeting! See you on the next blog entry about Positioning.