Thursday, September 29, 2011

Market Targeting - Behavioral Targeting

What Is Behavioral Targetting?

There are two different kinds of behavioral targeting. There is online behavioral targeting and television behavioral targeting. On Yahoo or Google they watch what customers look at online. They take and put advertising that targets that specific range of customers. The television targets customers depending on the time of day. Like for example: in the morning, they advertise cereal, toys and items that kids would want. In the afternoon they target stay at home moms and senior citizens. In the evening they advertise to target men and women who usually are working people. Things like tools, house cleaning tools and places to go on vacation.

Behavioral targeting can be defined in several different ways, but iin general it is putting your advertising or marketing efforts to mostly to a specific group that would be intrested in your products or services. This could turn your sales around over night. In general it is behavioral studies, researcher, and market knowledge. The research is to pay attention on what your customer is interest in to put a product that they can find intead of waiting for them to find it on their own. For an example, if you see customers looking at fishing items. You would put advertising targeting to those websites with fishing equipment items. You would put advertising targeting to those website with fishing equipment or tips to catch bigger fish. This gets it to the people interesested in fishing and equipment. Instead of getting people not interested. They would also put on their website for these customers to look at their brands with tips on best way to use this equipment and what it should catch. Behavioral studies goes along with the research. They research what customers would be interested but the behavioral studies what customers that buy their products will need to go with these products. You will see a lot of this advertising on websites of auctions that sell things that go with their products. Like if someone is looking at computers. They would be advertising office software and computer items.

How Behavioral Targetting Works

How behavioral target work is when customers are searching for something online they are looking for a specific item they are interested in buying or putting on their want list to purchase later. If the customer is looking for cooking pans they would not want to target advertising on toys or cars They would want to advertise items that go with pans like their brand name of pans, skillets, utensils and special gadgets of their brands to help make using those pans a lot easier in the kitchen. A good example is Hamilton Beach sells pans, skillets, can openers and blenders. So the customer that is looking for one these items in search they would advertise these other items to target their brand. They would list these items on their website with prices and sometimes discounts if they buy a certain dollar amount. Some even offer free shipping if you buy from their website. This also targets the customers on a budget or someone wanting to save a little money.

If you are a new company and you are wanting to get customers to your website. This is where behavioral targeting marketing comes in use. For instance, if you were starting a restaurant and had built your company a website. Beside listing in the you would advertise on EBay with restaurant equipment and on the building for sale. You would want a good advertisement to catch their eyes, so they would click on it to go to your website and find out what you sell and a description on your company. It would be good if you posted your health rating and how long you had been in business. On your advertisement to target the person wanting to save money you could put a coupon like buy one Hot bar dinner get second one 50 percent off. Kids under 12 eat free. That would target the mom, the senior citizen and the family person to click over to your website and see what you sell.

Benefits Of Behavioral Targetting

A firm can make products or services that match most markets out online that different customer want. But if they want to target certain customers and have a chance to make good money they will target certain customers. If they have several products and use the market in general they will lose a lot of money.

The benefits of using this marketing technique is providing a way for advertising to cater to specific customers. Online is funded by advertising to keep the internet prices down. On television the advertising pays for the movies you watch or series that run every night. The first approach was for mass advertising which was to reach as many people as possible. Companies realized the importance of reaching these customers. But if they just advertised with an agency for all people their company would fail. So in the last few years since the internet growing advertising had to change. Companies knew they had to do two things and that is to know their customers and to know which customers will buy their products. Companies are smart when they realize that not all customers are going to buy their products. But the customers that do buy these products, companies need to take care of them and target them for new products coming out. This is how you make specific goals and decisions for market planning. Understand that people want to buy things to make themselves happy, satisfy their needs and solve problems. Companies want to target these need to sell their products to these people.

Internal and External Environments

To target customers companies need to consider two kind of environment. There are internal environment and external environment. The internal environment is based on what the company is built on. such as the objective, values, mission and vision. The external environment is as such as social economic, demographic, task, political, cultural, global, technology and legal. This creates a customer profile that includes products, price, place and promotions. There are kinds of targeting strategies which are niche marketing, mass marketing and selective marketing.

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