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Dear Reader,
This issue is devoted to one of the most important
tools anyone marketing a product can use. Ironically,
99.9% of all my past clients refused to use this tool,
because of the cost and time it takes to accumulate
the information. However, in every single discussion I
have with clients we ALWAYS discuss the types of
customers who are buying a product, and how best to
reach them through the media!
Why would someone refuse to shed light (which creates
dollars) on what I have termed "the customers great
black hole?" Why will clients rely so heavily on
information
they continually guess about, rather than
understanding and seeing-beyond any doubt-WHO their
customers are and WHERE they are located in the
marketplace?
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| Shining Your Customers Light Illuminates the bottomless Pit |
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At this stage of this media buying process we have
recovered well over 5000 customer names, addresses,
and zipcodes. As a matter of fact we have over 20,000
customer records in the case study which makes up
this particular newsletter series. We have everything
we need to find out who the customers are and where
to find more of them. Demographic and psychographic
information is used for this purpose.
Demographic information includes age, gender, family
type, median income, employment, housing and
purchasing preferences. This data is available from a
variety of public and private sources including the
census, surveys and customer databases. Thanks to
computers and the internet, the generation and
distribution of this type of data has exploded in recent
years.
The use of demographics has allowed businesses to
analyze merchandise mix, create targeted advertising,
evaluate new retail sites, perform competitive analysis,
profile existing customers, segment current customers
and predict future customers, survey new retail
territory locations, and target direct mail campaigns.
Through the use of historical demographic data it is
also possible to identify trends and use these to help
predict the future. This allows companies to forecst
sales or plans for expansion. Overtime, the accuracy of
these forecasts can be tested by comparing them to
actual demographic count from the U.S. decennial
census or annual estimates. This research is vital for a
company to position itself in the marketplace.
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| Birds of a Feather Do Flock Together |
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Psychographics or lifestyle segmentation, consolidates
or builds upon demographic data. It classifies and
groups people according to their underlying values,
opinions, personality characteristics, and interests. By
identifying common traits which distinguish one type of
person from another, it is possible to describe and
locate other people who share similar values and
behavior patterns. These people can be introduced to
your product offer through a targeted marketed
program.
Hence, the magic of having 20,000 customer records
illuminates both the demographic and psychographic
data about your customers and you can predict who
and where other like-customers are and live throughout
the U.S.. We don't have to blindly test market after
market, station after station and timeperiod after
timeperiod in order to uncover where your success is
hidden.
Next issue we will dive into the details of how this data
is transformed into usable information, and how that
can be used to predict which markets are the best to
purchase media in and even which stations (within each
market) are best targeted to locate your buyers.
Our guide is Mr. John Johnson. Mr. Johnson is the
president of GIS Consulting, and serves as Klondike
Marketing, Inc.'s consultant and research vendor
whenever we need to shine a bright light into the
customer's Great Black Hole. Please "click" onto his
website and review his business and credentials.
Our Expert Research and Data Connection »
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| If You Choose the Dark Then Welcome The Kiss of Death |
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Last week we looked at the media process of
broadcasting to Narrowcasting, and how this follows
into the stage of
Nichecasting. At this stage of media targeting we want
to create 1 sale for every 1000 prospects we reach.
This type of result could be effective if we were
purchasing on local cable television and radio. Print
media even comes into play at this level of targeting.
Basically, we may buy media on Lifetime in Phoenix or
The History Channel in Orlando. The number of viewers
number in the thousands on local cable, so even though
the prices seem reasonable for cable advertising you
really need to know what you are doing.
After all, if you spend $75 for a 60 second TV
commercial airing and no orders come in, that is more
expensive than a $1000 airing that made you
money!
Last Week's Newsletter-Great Reference for this Week
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