So what exactly is target marketing?

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So what exactly is target marketingTarget marketing consists of finding a niche market and advertising in places where that group is likely to hang out. There are many tools that you can use to find your niche. One of the tools that advertising agencies and business owners have used for years is demographics. Not only to identify a niche, but also to decide where their advertising dollars are best spent. In the offline world of advertising, demographics are sometimes used to decide where to put billboards or send coupons via regular mail.

Demographics

The demographics will help the agency to study the profile of a population by income, age, sex, race, etc…
When it comes to television advertising, selling ad time to a specific company often requires being able to tell that company “who” is watching the show. Sometimes phone surveys are used to gather this information.

Target marketing consists of finding a niche market and advertising in places where that group is likely to hang out.

Even the amount of time that a person spends commuting to and from work is a demographic. Audio books, fuel efficient cars and headphones are a few items that may appeal to people with a long commute.

Online Advertising

Companies that advertise online use target marketing concepts when they choose specific websites based on the website’s content or the age group that finds the content appealing. As an example, WebMD contains advertising from many pharmaceutical companies. News sites may have advertising from investment companies. Video game sites would contain advertising from toy manufacturers and video game makers. You get the picture. Small businesses with limited advertising dollars often partner with other businesses in order to contact their niche via email. They also may use Pay Per Click Advertising, like Adwords, to help keep within a budget and also target their niche.

Psychographics

In addition to using demographics, marketers use another concept called psychographics. Psychographics is a less well-known term. This concept enables one to classify a market by their activities, interests, values or opinions. Just as an example, the major breweries advertise during football games. While not all sports fans drink beer, many of them do.
Target marketing is still being used
Target marketing may have changed with the popularity of the internet. But it is still being used and will continue to be a part of an effective marketing campaign.

Courtesy of: Bplans