Targeted marketing refers to market segmentation or identifying the specific customers that are more likely to buy your products, solutions or services and then to promote those products, solutions or services to them. It makes the whole process of marketing easier and more cost-effective.
Basis for Market Segmentation:
- Demographic Segmentation – age, gender, job level, education
- Geographic Segmentation – country, state/province, area code, postal/zip code, home address
- Psychographic Segmentation – socio-economic class, lifestyle preferences
- Behavior Segmentation – users’ past experiences, pains, and needs
To target a market efficiently, all you need at the first place is to know to know who the best-fits for your products are or whom your services or products are best suitable to.
Benefits of Targeted marketing:
Segmented and targeted emails generate 58% of all revenue, (The Direct Marketing Association, 2015)
- Cost-effective and less time consuming
- Efficient marketing campaigns
- Better customer relationships
- Builds loyal customer base
- Use of less sources
- Improves online presence
- Generates more leads and increases ROI