The Value of Knowing Your Target Market: Increased Sales!

I was doing some additional research for a video that I’m putting together about Targeted Marketing and came across this article. It’s a perfect example of how companies are aggressively getting to know their customers so they can smartly push their marketing dollars in the right direction…and the results are exceptional.

While many automobile companies have been suffering with their approach of “let’s make a vehicle that is for everyone”, smart companies have been developing vehicles for niche markets and promoting the vehicles through well-researched, crafty marketing campaigns.

A great example, as discussed in this article, is Kia and their promotion of the Kia Soul. Using furry hamsters as the focus of their ads, it has resulted in substantial growth for the company.  “The ads were born from what David Angelo, David & Goliath’s chairman and chief creative officer, describes as “deep strategic research” into the target consumer of the Kia Soul: Gen Y.” Perhaps you saw the ad during the SuperBowl, but they are awesome.

The ads are obviously appealing to the young driver and 20-something set, with features like glowing speakers, iPod hook ups, music, etc…the ad represents the driving experience that young drivers are looking for: COOL.

Another thing KIA did right was to actually increase their marketing while other companies slowed down their marketing. Rather than choosing to be the “effect” of the “economic forecasts”, they chose to “cause” for their own growth and production. The result? “Kia, which is based in Seoul, South Korea and is owned by Hyundai Group, has grown while most car companies have struggled in recent years. Its American division credits its current position to aggressive campaigning in 2009 when competitors cut back. In January, a traditionally weaker month for car advertising, Kia launched three new products and readied its first Super Bowl ad.

On the sales side, Kia is lucky it went with the furry option.

In June, Kia Motors America’s retail sales surged 45% over the same period last year. While Ford (F, Fortune 500), General Motors, and Toyota (TM) also posted smaller year-over-year increases in June, their sales fell from May by 11%, 13% and 14%, respectively. Kia’s rose 1.5% month-to-month.”

So, the two lessons learned here are:

  1. Targeted marketing based on a study of the ideal customer is an essential element for growth.
  2. Don’t do what others are doing. Had Ford, GM and others ramped up their marketing campaigns they would have gained a larger customer share. Kia’s sales boosting up 45% means that folks are still buying cars. Ford and GM could have gained more customers by taking the approach that Kia did

Applying these two lessons to your home-based business will give you “big boy” results. Get to know your ideal customer, target your marketing and, when it comes to advertising, don’t be frugal.

To read the full article go here:


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