By now you should have a thorough understanding of the consumer profile, including what they value and what motivates them to continue to purchase your product and engage with your brand.
In this topic, we will hone in on the focus of the marketing campaigns to target the existing audience as well capturing new business for the organisation.
By the end of this Topic, you will understand:
- How influences on consumer behaviour will be used to target effective marketing strategies and present a rationale for marketing focus
- How to clarify the role of the consumer in the digital marketing environment and model engagement conversations and interventions
- The importance of confirming focus of appeal to meet legal and ethical obligations and budgetary requirements of a marketing plan
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A skincare and beauty company has researched and identified that their target market consists of females between the ages of 18 and 35, who value natural and healthy beauty products. So, the marketing campaign must resonate with their values, wants and needs (as achieved so successfully by Dove and its many advertisements).
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Below are some videos from different Dove Beauty Campaigns to help demonstrate and understand how affective their marketing campaigns are.
We will now take a deeper look into how the influences on consumer behaviour will be used to target effective marketing strategies and present a rationale for the marketing focus.
Targeting in marketing
Targeting in marketing is a strategy that breaks a large market into smaller segments to concentrate on a specific group of customers within that audience. It defines a segment of customers based on their unique characteristics and focuses solely on serving them (Jennifer, 2020).
Instead of trying to reach an entire market, a brand uses target marketing and segmentation, as discussed in the previous Topic, to put their energy into connecting with a specific, defined group within that market.
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To learn more, watch the following video which discusses marketing strategies formulated around targeted marketing and segmentation.
Develop an effective marketing strategy
Any culmination of activities, whether online or offline, that helps a business to move closer to its short- or long-term strategic sales goals are part of its marketing strategy. It includes a thorough evaluation of the market dynamics, demographics and competitive environment of any industry or niche prior to creating an overall plan of action (Adams, 2017).
The most effective marketing strategies can only be planned after careful and deep analysis of the finite details. Following are three questions that must be answered to launch into designing a marketing strategy:
- What is currently contributing to the greatest amount to top-line sales?
- What is currently contributing the most to profit margin?
- What is currently contributing the most to sales growth velocity (that is, what segments of existing products and services are growing the fastest)?
How to develop an effective marketing strategy
From a consumer behaviour and interaction perspective, here are seven step-by-step principles that can be considered while planning an effective marketing strategy.
- Embed a strong storyline
- Build an emotional attachment
- Is consumer-centric
- Is multi-channelled and multi-platformed
- Is scalable
- Is agile
- Leverages thought-leaders
| It embeds a strong storyline |
No matter what plan is put into place, the basis of a successful implementation is founded upon the existence of a strong storyline.
Every part of the marketing message should be designed around the storyline. The story or the central character in that story is a crucial piece in a company’s potential for success. |
|---|---|
| It builds an emotional attachment | There are two types of buyers in this world:
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| It is consumer-centric | Every strategy must place the consumer at the heart of the message. Every product, service or piece of information that’s offered has to keep the consumer at its heart and mind. Once the message shifts to a business-centric one, the company begins to fail and sales inevitably decline into a freefall. |
| It is multi-channelled and multi-platformed |
You want to reach customers on different platforms such as Facebook and AdWords, for example, but also advertise to them on other channels like YouTube, Instagram and anywhere else they might congregate. This is also the power of re-targeting and frequency of views. When people see your re-targeted ad on different platforms, and you’re effectively 'following them around' on the internet after they’ve shown an interest in your business, it sends a powerful subconscious message and helps to convert those browsers into buyers. |
| It is scalable | Any effective marketing strategy must be scalable. Small tests need to be done before doing a big ad spend. Once you have an offer that converts, you can scale that offer to infinity. Afterwards, the more you spend, the more you make. But you need to ensure that it is scalable in the first place and that it is producing a profit. Beyond that, the steps are rather simple and straightforward. |
| It is agile |
When a business fails to adapt and be agile enough to changing market climates or increasing competition, they fail. Today, with the internet, shifts that once took decades to occur are happening within months. You have to be prepared to pivot your plan and be agile enough to move things around. Don’t overcommit to something and be so entrenched that you’re unable to pivot when necessary. |
| It leverages thought-leaders |
Everyone’s heard of influencer marketing. You can also call these people thought-leaders. However, it isn’t just about influencers, it’s also about power users. All of these people can help you to spread your message. By getting the right thought-leader onboard, you can really take your marketing reach to the next level. That’s why celebrities and influencers are paid big bucks - because companies know that those followings can make a significant difference in sales with the right endorsement from the right person. |
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Next watch a video explaining Coca Cola and their marketing strategy that has helped them be a global player in the market.
Next watch this video from Philip Kolter explaining the concept of Marketing Strategies.
Digitisation has definitely gone on to push marketers across the globe to transform the marketing game. Not just that, the shift in marketing technologies has even evolved consumer behaviour and their decision-making abilities (Chain Reaction, 2015).
As discussed earlier, consumer behaviour is essentially 'the purchasing patterns and decision processes of consumers' (people that are looking for products and services for personal consumption).
Here are some of the ways that digital marketing has influenced consumer behaviour:
| Ability to research and experiment | Digital marketing has helped customers make the most of the transparent relationships brands are willing to have with them, in addition to providing them with a better understanding of certain services and products. |
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| Accessible word-of-mouth | With the advent of technology, especially social media, consumers now have the power of projecting their opinion on a large audience. For instance, reviews from bloggers, comments on a sponsored post and customer reviews left on brand pages have all helped people widen their approach to consumerism. It would also be safe to say that digital marketing has put consumers in the driving seat. |
| Inconsistent customer loyalty |
When it comes to customer loyalty, we can say that digital marketing did not change consumer behaviour, it only highlighted it. This has made brands compete more fiercely, which only helped customers get better services at lower costs. Customers are looking forward to products that provide them with better value for the same amount of money, and so they show less hesitation when switching from their go-to brands to completely new ones. |
| Boost in customer engagement |
While customers always have the power of choosing their brand and building its reputation, digital marketing has amplified their capacity. Customers can engage with their brands on social media, search engines, and other review websites. They can now instantly share their opinions with their brands. If the brands respond to their feedback quickly, they will ultimately receive even more engagement and experience a growth in sales. |
| Artificial Intelligence impacts consumer behavior |
Digital marketing is driven by the efficiency and feasibility that technology, like Artificial Intelligence (AI), brings to the table. Artificial intelligence is definitely going to have a huge impact on consumer behavior, since brands that make use of it are able to present their products and services more efficiently than those that do not. |
| Impulsive buying behavior |
Impulsive buying is a spontaneous decision made 'on the spur of the moment' when, generally, customers pre-plan their purchases and pre-choose the products that they wish to buy. This common phenomenon is used by digital marketers to actively steer consumer behavior. Through advertising online, brands highlight attractive deals, discounts, and offers that customers are happy to explore. |
| Less patience, high expectations |
With technology, consumers have become noticeably impatient as their expectations for fast, efficient service have doubled. Exposed to online customer reviews and forums, they receive sentimental, real feedback on products and services. The abundance of information they get through digital marketing has a serious implication on their purchasing behavior. Services like hassle-free exchanges and next-day delivery are quickly raising the expectations of consumers. |
| Personalized shopping experience | Today's customers don’t want to spend a great amount of time researching and purchasing their desired products. Brands have realized this change in consumer behavior and they have geared their online marketing and branding strategies toward providing a personalized experience to all consumers by curating personalized content. |
Case Study: Bella & Brava
Company: Bella & Brava, Venice-based pizzeria
Focus: Digital Marketing via Social Media
Bella & Brava wanted to open new locations, and so they partnered with a digital consultancy company to harness the power of social media (TalkWalker). This digital consultancy company analysed data from user-generated content created by the exact people Bella & Brava were aiming to serve: their hip and young target audience.
Bella & Brava found the prime cities to open in, partnerships to expand into, and unique cultural differentiations. All this came from identifying quality pizza photos posted all over social media - Instagram, Facebook, Twitter - and observing what else was revealed in the images.
This is one of the ways marketing strategies are designed, based on 'social listening'.
In the digital age, there are two types of organisations: those that collect data and those that transform it into opportunities.
Ilaria Baietti, Director - Brand Interaction, OpenKnowledge
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Next, watch some videos explaining the basics of Digital Marketing and Digital Marketing 101.
Instead of the traditional 'push' model of marketing campaigns, engagement marketing pulls consumers in by telling stories, driving conversations, and addressing customer needs and interests. The goal is to involve customers in a deeper, more sustained relationship with a given product or brand (Mohanbir, 2016).
Here are five key tips for companies looking to authentically engage their customers:
To do this well requires frequent innovation. It also means staying relevant and responsive to customer issues as they arise. Highly responsive companies are quick to nip service problems in the bud through tactful communications.
If marketing works best when customers feel like they have a genuine relationship with a brand - one that is interesting, mutually beneficial and steady - that relationship needs to be sustained.
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To understand further about consumer engagement, watch this short video about consumer engagement that maps back to marketing strategies and digital marketing.
While marketing has existed since the start of commercial trading, it has become more and more of a grey area for businesses.
Questions that have been raised include: the blurred line between data collection and the invasion of privacy as well as the grey area between attracting consumers and deceptive advertisement.
Businesses must be careful to tread on the right side of the line between legal and illegal.
The following table outlines three key legal and ethical obligations in marketing:
| Data collection and the invasion of privacy |
Data collection is often considered the first, and most significant, stage of marketing. Extensive data allows businesses to choose the most optimal marketing techniques for their consumer base. However, while lawmakers are yet to decide on a legal position, individuals are pushing for tougher privacy laws. For example, in a recent survey of 11,000 people, almost 70% said they would gladly use a 'do not track' feature on search engines, if available. |
|---|---|
| Distribution of data |
Delivery channels such as telemarketing, door-to-door sales and unsolicited emails are some of the most controversial areas of marketing. Legal and ethical issues arise because the majority of consumers are either unaware of available protections or cannot be bothered to report petty offences. As a result, marketers often get away with illegal and unethical behaviour. More specifically in Australia, email anti-spam laws require that a business has the receiver’s consent, identifies the sender and contains an unsubscribe facility. |
| Misleading claims |
Misleading claims in advertising may involve claims about the quality of the product, the availability of a service and any exclusions on a good. Examples of misleading and illegal marketing techniques include pictures of planes for a road transportation company or fine print that may contradict the overall message of the advertisement. |
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- Discuss why legal and ethical considerations must be taken into consideration when recommending a marketing focus.
- Explain how your digital channels for marketing would differ between the following target markets who are looking to purchase a vehicle.
