by Once target segments are identified, the marketing manager selects a targeting strategy that will be the best fit for reaching them. Targeted marketing enables the marketing and sales teams to customize their message to the targeted groups of consumers in a focused manner. The targeting strategy is where the marketing mix comes together to create the right offer and marketing approach for each target segment.
One for all strategy
Any one size fits all marketing strategies will not be able to make sure that all of these people belonging to different demography are targeted. Hence, the ideal marketing campaigns are those which are tailored to target specific groups of people.
One size fits all makes sense as a lean startup option because you can funnel limited resources toward a specific product or service instead of spreading them too thin. By not offering customization, you only need to have one manufacturing line set up, and fewer variables to customize means fewer opportunities to mess up an order. This allows you to feel comfortable with the process before you expand your offerings.
In terms of services, following a one-size-fits-all approach can help you create stable, flat-rate pricing and develop a service routine. For example, if you offer manicures, it’s easier to perform the same process for the same price on all nails rather than giving a custom quote for people with long nails, short nails, missing fingers, etc.
Cons of One-Size-Fits-All Products and Services
You may not want to offer a one-size-fits-all product or service if each customer in your industry has widely different expectations. People do not want to pay for what they don’t need, and you run the risk of making customers feel overcharged if you only offer one type of service package or an overly customized product.
In addition, a lack of customization can leave you at a competitive disadvantage if other businesses in your niche have moved away from the one-size-fits-all option. You’ll end up leaving customers on the table who know they can get what they want from someone else.
A one-size-fits-all approach does not allow you to use the “Good, better, best” pricing strategy to upsell more robust products and services. Diversifying your products and services also opens you up to additional revenue streams.
Customizing Your Services or Products
Startups usually follow a one-size-fits-all approach on a temporary basis until the business has enough financial stability to offer customization. For example, you can produce a limited run of products in different colors to discover which ones resonate best with your audience before scaling up production. In terms of services, consider developing upgraded add-on services that are optional but recommended for a full experience. Creating “bronze,” “silver” and “gold” service packages can also allow customers to choose what best fits their needs.
If you’re stumped about how to proceed, do a little competitor research to see how they have organized their services or customized their products. Read public reviews to find out if their customers are happy with those options or wishing for something different.
One for each strategy
One-to-one marketing (also sometimes written as 1:1 marketing) is a strategy that relies on getting to know the individual choices made by a customer, and then tailoring marketing outreach to each customer differently based on those choices. It’s an approach that is not used to get the customer’s attention, but to keep their attention and their business.
Customization: the company doesn’t learn the preferences of each customer, but instead gives the individual customer the ability to customize the product to their own tastes. A good example of this strategy is a computer retailer that offers a basic platform of a laptop and then gives the customer the ability to tailor many of the laptop’s features (processor, memory storage, loaded programs) to their own tastes and needs. Many online news websites use the same strategy by allowing visitors to pick and choose the types of news stories (international, political, financial, etc.) they want shown most prominently on the site.
Personalization: the company learns the personal preferences and tastes of each consumer and customizes its marketing plan to them. Amazon.com is known for perhaps the most successful 1:1 personalization strategy, recommending products based on past purchases and interests.
Marketing Strategies
“Suggestions for You” Marketing: Online marketing companies like Amazon and Netflix have become masters at collecting, storing, and interpreting customers’ click history on their sites. They take that information and create a specialized marketing plan just for each customer, with recommendations on the next book to read or the next movie to watch.
The Personal Touch: Few things make a bigger impression on a consumer than personal attention and appreciation. The best coffee shop baristas know what Joe’s order is the minute he walks through the door, and that keeps him coming back. Investment bankers are expert 1:1 marketer. They get to know their clients’ personalities and investment preferences and priorities, as well as what level of risks they’re willing to take.
Preferred-Customer Marketing: Many retailers now offer a no-cost “Club membership” to consumers. Club membership gives the customer incentives in the form of lower prices or frequent-purchase rewards. In order to earn those incentives, the customer must check-in with their membership ID. This allows the company to track all items purchased during each visit. Once retailers know each customer’s shopping patterns and preferences that a particular club member buys a lot of cereal and prefers Cheerios, for example they can send out personalized coupon mailers to that member with savings on Cheerios and other preferred items.
