Horngren’s Cost Accounting A Managerial Emphasis, Canadian 9th edition soluti...
Finding Your True Audience
1. Finding Your True Audience
Targeting the Right Customer at the Right Time with the Right Media
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2. An online users sees more than
1,800 ads per day, which is an
increase of more than 250%
since 2004.
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7. 9 Need to Knows
Revenues are still relevant
– Collect information about customers to establish how
much cash money they bring to your table
Happiness is contagious
– Focus on happy customers
Price sensitivity is NOT a good thing
– Don’t make your market position about price
– When Mickey Drexler took over a CEO of J Crew, he was
looking for customers willing to pay more for well‐made
clothing and increased revenue 170% in the first 5 years
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8. 9 Need to Knows
The bigger the problems the better
– The bigger the problem your brand can solve, the bigger
the market response
– In the early days of the internet, AOL went after people
interested in getting online but not willing to do it alone
– As a result, 30 million people signed up and they became
4th on the list of events that shaped the first 25 years of
the web
Be on the lookout for something new
– Introducing new products and services can generate
organic growth companies crave
– Focus on your customers that are most interested in new
innovations from your brand to generate bottom line
growth
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9. 9 Need to Knows
Out there advocating for your brand
– The greater the level of influence a buyer has among their
social networks and word of mouth marketing, the more a
brand’s marketing ROI will benefit
A hub with lots of spokes
– The more active and engaged a customer is with different
social media, the more valuable they can be to your brand
– Ford Motor Co. picked out 100 twenty‐something YouTube
storytellers who’d developed a fan community of their
own and gave them a Fiesta for 6 months
– Each month they share their experiences with their
communities via YouTube, Facebook, twitter and Flickr
– Ford received 50,000 requests for information and sold
10,000 units in the first 6 days of sales
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10. 9 Need to Knows
Distinctive needs and wants
– The more similar and predictable a target group’s needs
and wants, the easier it is to develop compelling
positioning and messaging
Meaningful to traditional and digital decision makers
– Get a sense of how high‐value customers use traditional,
digital and social media communications throughout the
pre‐ and post‐purchase process
– Understand how the like to interact with a brand within
different communications channels
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11. What Is Equity?
Building Customer Equity
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12. What is Customer Equity?
A firm is only as good as its customers think it will be the next
time they do business with them
Customer Equity is made up of 3 parts
– Value Equity – a customer’s objective evaluation of the
brand’s offering
– Brand Equity – a customer’s subjective view of the brand
and its offerings
– Retention Equity – a customer’s view of the strength of
the relationship between them and the brand
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13. Value Equity
A customer’s objective assessment of the utility of a brand
based on perceptions of what is given up for what is received
What drives value equity for the customer?
– Quality – What is the value of the brand offerings?
– Price – How attractive is the price?
– Convenience – How easy is it to do business with the
brand?
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14. Brand Equity
The customer’s subjective and intangible assessment of the
intangible, above and beyond its objectively perceived value
– This is determined by the brand’s marketing strategy,
tactics and influence over the customer through life
experiences and associations with the brand
What drives brand equity?
– Building awareness and attractive customers
– Building emotional connections with customers
– Reminds customers to repurchase
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15. Retention Equity
The tendency of the customer to stick with a brand above and
beyond the customer’s objective and subjective assessments
of the brand
– Focuses on the relationship between the customer and
brand, based on actions taken by the brand and the
customer to establish, build and maintain a relationship
What drives retention equity?
– Loyalty programs (frequent purchases/rewards programs)
– Special recognition and treatment programs
– Affinity (emotional connection programs)
– Community programs
– Knowledge‐building programs (workshops and seminars)
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16. Audience targeting can identify the best
consumers for a specific ad or campaign
and can be used to effectively reach
sales, acquisition and branding goals.
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20. The Ingredients of Targeting
What are people looking for
– Search Engine information
Interests
– Content of articles viewed
Where They Go
– Pages, Sections, Sites
What They Say About Themselves
– Income ranges, Gender, City
Tools They Use
– Calculators, Configurations,
Comparisons
Offline Data
– Transactional, Affinity,
Psychographics
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21. Audience Targeting
Targeting: The process of identifying segments of similar users, and
incorporating them into the ad delivery decision
Behavioral Targeting: The process of identifying patterns of user
interactions, and incorporating them into the ad delivery decision
Interaction Recency Frequency
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22. What is Behavioral Targeting?
A method used by online advertisers to increase the
effectiveness of a campaign
Uses information collected about an individual’s web
browsing behavior to select the advertisements to display to
that individual
Allows for the displaying of ads that are more relevant to the
interests of the individual viewing a particular page
Because of this, it is believed that this type of targeting helps
advertisers deliver their messages to the individuals most
likely to be influenced by them
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23. How Behavioral Targeting Works
Tag Segmentation Behavioral Targeting
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24. Why Does It Work?
Reach and identify qualified audiences based on their
behaviors, interests and habits
Target relevant ads to engaged consumers throughout their
purchasing cycle
Improve online advertising performance, reduce waste and
increase ROI
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25. At emagine, we work with 2
internationally respected firms
for audience segmentation.
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30. Understanding Market Segmentation
Learning How to Break Down Your Customer’s Into Groups
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33. Market Segmentation
Divides the market Divides the market
into different into groups based on
geographical units variables such as
such as nations, age, gender, family
regions, states, Geographic Demographic size, income,
counties, or cities segmentation segmentation occupation and
education
Divides buyers into Divides buyers into
different groups Psychographic Behavioral groups based on
based on social class, segmentation segmentation their knowledge,
lifestyle, or attitudes, uses, or
personality traits responses to a
product
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35. Marketing Segmentation
New vs. 4 Key 8 Major 16 Visitor
All
Returning Products Markets Personas
100% of visitors 100% of visitors
1 segment = all 16 segments = all
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36. Market Targeting
Mass Segmented Niche Local/Individual
Undifferentiated Differentiated Concentrated
MicroMarketing
Marketing Marketing Marketing
Targets the Targets several Targets a small Practice of
whole market different market share of a large tailoring
with one offer segments and market products and
designs separate marketing
Mass marketing offers for each to Limited company programs to suit
achieve higher resources the tastes of
Focuses on sales and specific
common needs stronger position Knowledge of individuals and
rather than the market locations
what’s different
More effective
and efficient
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37. Mapping our Data to Sellable Segments
View content
Interest
View product information
Life‐stage
View ad
Lifestyle
Click on ad
Intent
Purchase something
Behavior
Search for something
Demography
Attend an event
Provide information about themselves
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38. Mapping our Data to Sellable Segments
Interest
Life‐stage
Active Travelers
Lifestyle
Intent
Affluents
Behavior
Demography
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39. Understanding How Targeting Works
General Testing Segment Testing Targeting Profile Targeting
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40. Results from Mass Marketing
Price
Direct Sales
Fill by ad networks
Volume
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41. Results from Market Segmentation
Price
Direct Sales
Audience‐based selling
New Revenue
Fill by ad networks
Volume
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42. Results from Audience Targeting
Price
Direct Sales
Audience‐based selling
New
Revenue
Fill by ad networks
Volume
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45. The Resistant Customer
Mindset: Hates your company and
holds deep resentment for your brand
Behavior:
– Will spread negative word of
mouth wherever possible
– Took their experience with your
brand personally and is looking for
revenge
– Will defect to your competitor first
chance they get
Loyalty: Zero
Possibility of Defection: Extremely High
(you can’t save this group)
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47. The Indifferent Customer
Mindset: Sees your company/product/
service as nothing more than a
commodity
Behavior
– Will always try to get lower prices
to the point of near zero margin
– They will promise volume or future
business, but see little unique
value in your offering
– Always willing to walk away from
the sale because they have other
options available
Loyalty: One
Possibility for Defection: Very High
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49. The Acceptant Customer
Mindset: Expects your customer to
provide the maximum of what’s asked
and nothing more
Behavior:
– Doesn’t think of your brand until
absolutely necessary
– Comes to you because you have
become a habit or more
convenient choice
– Maybe aware of other, better
options, but simply hasn’t made
the effort to pursue them
Loyalty: Two
Possibility for Defection: High
– Customer expectations can
outpace what you provide
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51. The Preferential Customer
Mindset: Has grown to like your brand
and tends to understand the unique
value that you provide
Behavior:
– Most of us make the mistake of
making this customer type the top
of our customer pyramid
– When given a choice, they will
probably continue to use your
brand
– Very aware of industry trends and
can surprise by defecting if you
have not given them benefits or
raised the bar on service or
innovation
Loyalty: Three
Possibility for Defection: Somewhat
High
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53. The Evangelist
Mindset: The pinnacle of the customer
relationship and would buy anything
you offer
Behavior:
– They tell everyone they know
about your company
– Mentions how satisfied they are
even in casual conversations
– Your brand has become part of
their life
– Finds personal meaning with your
brand
– Worth their weight in gold because
they do more to grow your
business than any ad campaign
Loyalty: Four
Possibility for Defection: None
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54. Calculating Customer Lifetime Value
What is a customer worth?
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55. Customer Lifetime Value?
Customer Lifetime Value (CLV) is how we determine what a
customer/client is worth over the lifetime of their relationship
with the brand
This is difficult to calculate for consumer goods, but very easy
for service based and financial services brands
What we are looking to understand is which customers are
worth keeping as clients and which should be let go to
increase profitability
This may seem like a dirty way to determine how much work
you do to maintain client relationships but it is a requirement
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