Empirical marketing evidence, produced by Byron Sharp & Jenni Romaniuk, from the Ehrenburg-Bass Institute, informs marketers that narrow targeting actually restricts growth.
That probably seems counter-intuitive to everything you’re taught when you study marketing at university!
I know it took my head a while to get around, and too be honest, I don’t think I recall much of what I learnt at uni anyway.
When you scroll thing Instagram looking at marketing gurus, or through the dredge that is LinkedIn, they’ll all posit about their in-depth targeting systems, retargeting this that and fourth.
It all has a really important place.
But - it cannot be the basis of a marketing strategy for a business or brand that wants to responsibly grow, and not rely on paid marketing every time they need an influx of sales.
Here’s why: narrow target segments intentionally restrict broad reach with the intention of only reaching people who are in-market to buy your product or service. Empirical marketing research now tells us otherwise: reaching all category buyers at all times through broad reach media.
Byron Sharp tells us that your brand can grow better, faster and more responsibly by addressing as many people as possible, not just people who are ready to buy right now. The aim of this to have more new customers than your competitors, therefore achieving greater market share and market penetration.
After all, research also tells us that the bigger the brand, the more loyal customers they have.
“Buyers use Category Entry Points to retrieve brands. This makes them attractive associations fir the brand… the more links to CEPs a brand has, relative to competitors, the greater the chance is that it will be salient in any buying situation” - Jenni Romaniuk & Byron Sharp, How Brabds Grow: Part 2
Here’s an example:
You’re a 16 year old boy. You love playing video games, playing football and hanging out with your mates. You’re single; not thinking about what a potentially girlfriend might want for a christmas gift.
However, you get lucky, and a girl likes you. All of a sudden, you need to buy a nice bouquet of flowers to win her over.
If that flower shop down the road hadn’t advertised to the entire community on a radio ad, and only targeted males in relationships through detailed Facebook targeting, chances are he wouldn’t of known about them, and just gone to Woolworths or Coles instead.
That’s why reaching the entire broad community works, because people can have no need for you one day, and then need you the very next.
While some targeting can be useful, particuarly in BOF activities, brand growth requires reaching a wide audience of category buyers, which is not achieved by focusing on a small segment of the market.
If you’re looking for some help identify your brand/businesses category entry points, send us an email, we’d be glad to help you discover them, own them, and build a greater flow of new customers. We’re from Albury Wodonga, but are happy to service anyone who needs our expertise.
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