Targeted marketing identifies an audience likely to buy services or products and promotes those
services or products to that audience. Once these key groups are recognized, companies develop marketing campaigns and specific products for those preferred market segments.
Promotional messages and advertisements are sent to those primary groups instead of mass marketing without regard to the specific characteristics of the audience.
BREAKING DOWN ‘Target Market’
A company invests significant amounts of time and capital to define and monitor its target market. Not all products and services are meant for all types of consumers, and consumers are often cautious with their spending power. For this reason, target markets are typically segregated by age, location, income and lifestyle. A company defines its target market by the consumers that are likely to have a need for its product. Defining a specific target market allows a company to hone in on specific market factors to reach and connect with customers through sales and marketing efforts.
Testing of the target market often occurs in a phase before the product release. In this phase, a company may use limited product roll outs and focus groups, allowing the product managers to get a feel for which aspects of the product are the strongest. Once a product is released, the company can continue to monitor the demographics of its target market through sales tracking, customer surveys and various other activities that allow the company to understand what its customers demand.
Good Opportunities for Better Targeting in Social Media
It’s important to spend time optimizing your social media marketing efforts. Don’t believe me? Consider this: Customers who engage with companies over social media spend about 30% more money with those companies than customers who don’t . The same study shows that they also demonstrate a deeper emotional connection to companies, giving them an average 33 points higher. But it’s one thing to create a Twitter, Facebook, LinkedIn, and Google+ account it’s another, more lovable thing to cater your social media content to the right people.