Question

Identify, define, and explain (using examples) the three different targeting strategies used by companies.

A marketing director wants to create a marketing strategy to target a new international segment in addition to the already targeted domestic market. Identify and explain three influences of culture that means a different strategy is needed for the new segment.  

Identify at least four differences between B2B consumers and B2C consumers, giving examples for each difference.

Paragraph for each .

Answer 1

Different targeting strategies used by companies.

Once target segments are identified, the marketing manager selects a targeting strategy that will be the best fit for reaching them. Targeted marketing enables the marketing and sales teams to customize their message to the targeted group(s) of consumers in a focused manner. The targeting strategy is where the marketing mix comes together to create the right offer and marketing approach for each target segment.

Mass Marketing

Mass marketing, also called undifferentiated marketing, involves marketing to the entire market the same way. Mass marketing effectively ignores segmentation and instead generates a single offer and marketing mix for everyone. The market is treated as a homogeneous aggregate. Mass marketing aims to reach the largest audience possible, and exposure to the product is maximized. In theory, this would directly correlate with a larger number of sales or buy-in to the product.

Mass marketing tries to spread a marketing message to anyone and everyone willing to listen. Communication tends to be less personal, as evidenced by common mass-marketing tactics: national television, radio and print advertising campaigns; nationally focused coupons; nationally focused point-of-purchase displays. The success of mass-marketing depends on whether it is possible to reach enough people, through mass-communication techniques and one universal product offer, to keep them interested in the product and make the strategy worthwhile. While mass-marketing tactics tend to be costly because they operate on a large scale, this approach yields efficiencies and cost savings for companies because it requires the marketing team to execute only one product offer and marketing mix.

For certain types of widely consumed items (e.g., gasoline, soft drinks, white bread), the undifferentiated market approach makes the most sense. For example, toothpaste (such as the brand Crest) isn’t made specially for one consumer segment, and it is sold in huge quantities. The manufacturer’s goal is to get more people to select and buy their particular brand over another when they come to the point of purchase. Walk through any supermarket, and you will observe hundreds of grocery products, especially generic items, that are perceived as nearly identical by the consumer and are treated as such by the producer. Many mass-marketed items are considered staple or “commodity” items. People buy new ones when the old ones wear out or are used up, and mass-marketed brand loyalty might be the primary driver when they decide which replacement product to purchase.

Target corporation is a good example of mass marketing company.

Differentiated Marketing

A differentiated marketing strategy is one in which the company decides to provide separate offerings to each different market segment that it targets. It is also called multisegment marketing. Each segment is targeted in a particular way, as the company provides unique benefits to different segments. The goal is to help the company increase sales and market share across each segment it targets.Gamble, for example, segments some of its markets by gender, and it has separate product offerings and marketing plans for each: Secret-brand deodorant for women, and Rogaine (a treatment for hair loss) for men.

When it is successful, differentiated marketing can create a very strong, entrenched market presence that is difficult for competitors to displace because of consumers’ strong affinity for products and offers that meet the unique needs of their segment. A differentiated strategy can be a smart approach for new companies that enter a market and lure customers away from established players to capture share in a large overall market. Often, established companies become vulnerable to new competitors because they don’t give sufficient attention to the perfect marketing mix for any given market segment.

However, differentiated marketing is also very expensive. It carries higher costs for the company because it requires the development of unique products to fit each target segment. Likewise, each unique product and market segment requires its own marketing plans and execution: unique messages, campaigns, and promotional tactics and investments. Costs can add up quickly, especially if you are targeting a lot of unique market segments.

For a large company such as Kraft, the cost of this kind of marketing is well worth it, since its products are sold all over the world. An example of its differentiated marketing strategy are the many surprising variations of the famous Oreo cookie developed for the Chinese market. Consumers there can enjoy Oreos with cream flavors such as green-tea ice cream, raspberry-blueberry, mango-orange, and grape-peach. All of these Oreo formulations have been heavily market tested and are based on the unique preferences of Chinese consumers.

Costco, Sam’s Club are the examples of differenciated marketing company.

Niche Marketing

Niche marketing (also called concentrated marketing) is a strategy that targets only one or a few very defined and specific segments of the consumer population. The goal is to achieve high penetration among the narrowly defined target segments. For example, the manufacturer of Rolex watches has chosen to concentrate on only the luxury segment of the watch market.

An organization that adopts a niche strategy gains an advantage by focusing all efforts on only one or a small handful of segments. All of their market analysis, product development, marketing strategy, and tactics concentrate on serving that select part of the market. When they do it well, this approach can provide a differential advantage over other organizations that don’t concentrate all their efforts on the “niche” segment(s). Niche targeting is particularly effective for small companies with limited resources, as it does not require the use of mass production, mass distribution, or mass advertising. When a company is highly successful in desirable “niche” market segments, it can be very profitable.

The primary disadvantage of niche marketing is that it makes companies vulnerable to demand in the narrow market segments they serve. As long as demand is robust, the organization’s financial position will be strong. But if something changes and demand drops off, the company has nothing to cushion it from financial hardship. Since the company has focused all efforts on one market (essentially putting all their eggs in one basket), the firm is always somewhat at risk. Such companies are especially vulnerable to small shifts in population or consumer tastes, which can greatly affect their position (for better or for worse). Large competitors with deeper pockets may choose to enter a market and use their size and resources to put smaller, niche players out of business. To insulate themselves from this type of risk, many companies pursing a niche strategy may target multiple segments.

Luxury-goods providers are a great illustration of the challenges of the niche marketing strategy. When economic recessions occur, luxury-goods providers like Rolex, Chanel, and Armani routinely struggle financially because their narrow segment of “luxury” consumers has less disposable income. When fickle consumer tastes shift from Ralph Lauren to Dolce & Gabanna to Prada (and back again), the company’s profitability can hang in the balance.

Trader Joe’s, Whole Foods are the good example of companies which use niche marketing strategy.

Cultural Influences on Marketing Strategies

To develop a successful marketing strategy, an organization must take into consideration the cultural influences of the society where a new product is being introduced. People make decisions about consumption of a product based on these cultural influences.

A great example of this in action is Lidl, the German discount retailer, which won a UK IPA Effectiveness Award in 2018 for their Lidl Surprises campaign that challenged perceptions of Lidl product quality in the UK.

Whilst in Germany advertising has always focused on price, range and value, that alone was not enough to convince UK consumers to shop with Lidl.

Cultural Values of a Scoiety

Values of a society dictate what is acceptable and unacceptable behavior. Values can sometimes be broadly generalized for an entire country. For example, the United States is generally considered highly individualistic, with citizens making purchasing decisions based on personal preferences. In other countries, such as Japan, people tend to make purchasing decisions based on the welfare of a group, such as the family.

The way this plays out in marketing strategies is that ads focused on individuals do better in individualistic countries while group advertising works better in countries with collective group values.

Symbols and Symbolism

Symbols in relation to cultural influences refers to language, both spoken and unspoken. Language is a symbol of cultural pride. While some foreign influence may be acceptable, a culture may want to preserve its specific cultural heritage. A marketer would need to conform advertising in such a country into language symbols acceptable to the population of that particular country.

Similarly, marketing to immigrant populations in the U.S. who still speak the language of their native country should take into consideration the best way to reach out to these specific audiences. Other forms of culture symbols include folklore, drama, dance and music.

Thought Processes can Vary Among Cultures

Thought processes may vary among different cultures. This could affect the way a marketing strategy is perceived. People who are part of one culture may take in the whole picture in an advertisement and be able to report specific details of what they have seen, even in the background; those of another culture may only see and identify with the central figure and ignore background items altogether. This would affect the way a marketer presents his message based on cultural thought processes.

Differences between B2B consumers and B2C consumers

If you have worked in the digital marketing world, you’re familiar with B2B and B2C business types. But you might not be familiar with B2B and B2C marketing strategies. Most of the time, B2B (also known as business-to-business) marketing focuses on logical process-driven purchasing decisions, while B2C (also known as business-to-consumer) marketing focuses on emotion-driven purchasing decisions.

This isn’t always cut and dry—of course, sometimes there is overlap—but these differences between B2B and B2C search marketing are significant. For marketers or digital marketing agencies serving both types of businesses, understanding these differences is crucial to develop a high performing marketing strategy for a business. Whether it’s relationship building or communication strategy, marketers must take different approaches to maximize the effectiveness of their marketing tactics.

Here’s a breakdown of the five key B2B vs. B2C differences that every marketer needs to know.

1. Customer relationships

B2B: Build personal relationships

B2B marketing and lead generation focuses on building personal relationships that drive long-term business. So relationship building in B2B marketing, especially during the buying cycle, is crucial.

Why? It gives you the opportunity to prove what kind of business practices, ethics, and morals you keep close to your heart. This ability to connect with your targeted audience allows you to separate your business or your client’s business from competitors, as well as build your brand.

The top priority of B2B businesses is generating leads. Because of the importance of repeat and referral business, developing these personal relationships can make or break a business.

As search marketers, we get asked constantly to try and bury bad reviews, which as you know can be a lot of work. By developing honest and meaningful relationships, you are hoping to avoid these poor reviews altogether—but that might not be the only way reviews are helpful.

According to G2Crowd, 94% of customers read online reviews. With the majority of customers reading reviews, a negative review can be devastating. However, 72% of B2B buyers say negative reviews give depth and insight into a product.

Wait, bad reviews may result in a positive? Yes! When a website only has positive results, they can come across as fake and untrustworthy. Remember, even the best of the best have some haters out there. By responding to the negative and positive reviews, you can tweak your approach to business accordingly. Further, you are able to show the reviewer you truly care and that you are a real person responding to the needs and opinions of customers.

As an example, imagine that your company sells productivity software. If you are marketing it to businesses, the key thing you need to be able to show your prospective clients is that using the software will save them money in the form of time. Because those using the software will be able to streamline their work through the use of your software, employees will be able to get more done in the same amount of time. Because this likely would be a significant purchase for most companies requiring multiple software licenses and adequate training, expect the sales process to involve detailed demonstrations and trial periods.

B2C: Establish transactional relationships

The goal of B2C marketing is to push consumers to products on your client’s or your company’s website and drive sales. To do this, the customer needs to have a near-perfect customer experience with your website.

Ever heard the phrase “time is money”?

B2C businesses value efficiency and, therefore, minimize the amount of time spent getting to know the customer, which ultimately causes the relationship to become extremely transactional.

The marketing strategy focuses on selling the product, and the majority of time here is on delivering high-quality products at the quickest rate possible.

Unlike reviews in B2B business, reviews are buried by an influx of high quality, positive reviews. If your business or client is B2C, and the products you sell are of high quality, this should not be difficult. As a search marketer, pushing PR outreach and offering deals for completed reviews can help increase the number of reviews altogether.

A popular tactic that has shown to be useful for B2C review collection is through store credit or personalized discount codes through email marketing or remarketing.

After a customer makes a purchase or receives their product, they would receive an email or a pop-up that asked them about their experience. The main tagline here would be something such as, “Give us your feedback and receive 20% off next purchase!”

By providing extra value to your customer, you can increase future user experience and even cultivate an ambassador to your brand.

Consider again the example of productivity software. What consumers will want to know is how the software is going to make their lives easier. If it includes a calendar feature, how is inputting information easier, and how does it sync with family members' phones and laptops, etc.? Your customers in this example aren't looking for a return on their investment. They're simply looking for software that will make their lives easier without being too complex.

2. Branding

B2B: Focus on relationships

Branding is a part of B2B marketing, but, more often than in the B2C world, it comes through relationship building. According to B2B International, branding begins with the consistency of the presentation and deliverance of your products or services.

In regards to B2B search marketing, being able to portray where you position yourself in the market and have your personality shine can help drive brand recognition and lead generation.

Going back to relationship development, you must have a keen vision for personalities within the market. Being able to adjust your brand towards your target audience will help drive brand recognition and ramp up your lead generation.As for example,One of the largest companies in the world, Microsoft, is also one of the biggest advocates of storytelling as a brand-building tactic. Their Microsoft Story Labs platform highlights employees from every department within their company—from researchers to artists to video game developers.

B2C: Prioritize your message

Branding is essential in marketing because it allows the marketer to precisely deliver a message, create loyalty with the customer, confirm credibility, emotionally connect with the customer, and motivate the buyer to buy.

It also is the number one priority of B2C marketing.

Why? The relationship between the customer and company are minimally interactive so you must create a lasting memory and quality experience for the customer to ensure they will come running back.

To achieve this, clearly delivering credible messages and creating motivational copy that resonates with the customer is imperative to your success.As for example,Walmart Today With a more traditional digital editorial look and feel, the blog addresses a slew of news- and business-related topics of interest to Walmart’s wide audience. Much of the content focuses on community, giving, service, and volunteering to showcase how the brand is implicitly or explicitly improving the world.

3. Decision-Making Process

B2B: Maintain open communication

The decision-making process is another place where you can appeal to the emotional and rational decisions of businesses. In the decision-making process for B2B, it is more open communication between businesses to determine whether or not it is a good fit for both parties.

During this communication, comparing the positive aspects of your company to your competitors can be highly effective in giving you a step ahead.

During the decision-making process, B2B customers must evaluate the company or their individual worker’s needs. These needs can be separated into rational and emotional motivations.

The rational motivations are those that drive their financial mind. Is this a good investment for us?

The emotional motives are those that drive their emotional connection to the company or individual workers. Will I have to fire someone or a group of people? Will we lose money and have to cut benefits for our workers?

At some point, both of these decisions are important enough to sway their decision.

As B2B marketers, understanding your audience can help you understand the decision-making process that may apply to them. Being able to deliver a message that is clearly specific can place you ahead of competitors by creating an emotional connection between both parties.

As for example,The economic buyer – This individual is responsible for buying products that enable the company to achieve a business advantage. The economic buyer justifies the purchase by linking it to profit. The economic buyer’s position within the organization can range from the business unit manager level to as high as the CEO.

B2C: Simplify the process

The B2C decision-making process is where you can start utilizing their expertise in the conversion funnel to maximize ROI. At the top of the conversion funnel, a B2C marketer must be able to create influential advertisements that give the consumer the need for a product.

Once the consumer has identified a need, they already have a clear understanding of what kind of product they are looking to purchase. Unlike B2B businesses, consumers are much more flexible when looking at a specific product to buy.

As a marketer, it is essential that you continue to appeal to the consumer and ways to get them what they’re looking for by simplifying the decision-making process. Unless the consumer has made a firm decision to purchase your product, often they look at your competitors to see if they can get similar products quicker and for a better deal.

As a search marketer, it is essential to identify focus keywords that a consumer will search for when looking for similar products and try to rank for those keywords. The higher you rank, the closer you are to bringing customers back to your site.

When evaluating the conversion funnel, we see three sets of keywords we can potentially go after to grab their attention.

For example, if the customer wants to learn more about electric bikes, they may search for the long-tail variation of the keyword “electric bikes” such as “what is an electric bike.”

Once the customer learns about the electric bike, they may want to learn about electric bike brands that are trustworthy and high-quality. So, they will search “best electric bikes” next.

Once they search through the various brands, they may find the exact brand they want to purchase from, and now they are ready to buy. So, they search “[insert brand] electric bike.”

As a B2C search marketer, make sure that all of these portions of the conversion funnel are covered and targeted by blogs, core pages, and product pages so you have a higher chance of capturing potential customers in the space.

Remember, as solid as your conversion funnel is, if your checkout process is confusing, it can turn your customers away and leave room for others to steal them. Optimize your conversion funnels, minimize the complexity of these processes, and work toward the conversions you’re looking for.

4. Ad copy

B2B: Learn the lingo

B2B businesses are much more likely to want to purchase services or products from an expert who understands their terminology, processes, and even the decisions they have to make during the buying process.

So, to reach your target audience, speak their language!

For example, a B2B business that sells a $50,000 piece of software does not focus on writing fluffy copy that entices the reader to purchase their software on impulse. Instead, the copy should focus on taking the emotion away from the decision and building confidence in the potential customer.

The business—really, the director or manager in charge of making the purchasing decision—is buying the software to improve the overall performance of the business. Although they may have personal drivers for making the purchase, they need to remove emotion from the decision and think about the positive and negative effects of the purchase.

B2C: Write emotional ads

Unlike B2B business, B2C businesses must use a relatable voice that entices the customer to click on an advertisement. By using more straightforward language, you can speak in the customer’s voice rather than using industry jargon that might cause a customer to turn away.

Copywriting for B2C should evoke emotion in the consumer. For example, someone who is shopping for a $200 bicycle will take less time to make the decision to purchase it compared to a business purchasing a $50,000 piece of software.

The person buying the bicycle is looking to enjoy the purchase, which means the copy and content should evoke emotions of joy and excitement.

Place massive importance on this because something as simple as the ad copy can make or break an ad campaign. Be strategic!