Targeted marketing has “arguably been the driving force behind the success of many well-known brands (e.g., Pepsi, Mercedes-Benz, Miller Lite) and provides the basis of a predominant branding strategy, the user positioning approach, in which the brand is closely associated with a particular user or customer (e.g., Maybelline and the girl next door)”(Aaker, Brumbaugh,Grier 128). Because the touch points between organizations and consumers effectively define the revenue of those organizations, media companies, marketers and advertising agencies are shaping their strategy around consumer behavior by tracking their web activity (Vollmer 3).
The integration of engaged and relevance-based advertising is creating a blurring of the lines between "organization responsibility," in that many marketers are adopting “new models of interaction with agencies and media partners.” Similarly, up to forty-two percent of marketers have incorporated the use of in-house advertising agencies, according to a recent ANA survey (Vollmer 11). The presence of the larger, full- service agencies hinders the viewership of brands or organizations to which the digital user may already have existing loyalties. However, the all-inclusive model that many media organizations are adopting lack “reliable and standard metrics” across their multi-platform systems. The partnerships between “digital agencies, traditional media agencies, and media companies to track ad placement, versioning, and effectiveness [with]... savvy mathematicians, engineers, and computer scientists” is inhibited by a the absence of “collaboration and a recognized set of metrics,” as Vollmer writes, “It’s one thing to collect digital information; it’s quite another to draw intelligence from it” (11).
Successful marketing is ensured with the implementation of “STP strategy—that is, segmentation, targeting, and positioning.” Segmentation, is the process of ‘segmenting’ or classifying into well-defined groups of target consumer profiles, under the assumption that there is a degree of homogeneity in the needs, desires or characteristics in these individualized sectors of the targeted-markets (Lynn). Segmentation works by delivering advertisements to consumers that will theoretically identify with the content of the media, and therefore identify with the product (Aaker, Brumbaugh,Grier 129). Target-marketing to the digitally segmented consumers can lead to the negative effects of unintentional viewership by the “non-target market,” or those individuals who feel incongruences with the delivered marketing materials. Often companies use this “captured information” to force onto the consumer intrusive messaging (Dahlström and Edelman). “Non-target” receivers develop a “decreased preference for an advertisement,” and therefore product, in believing that they are not the target of the advertisement (Aaker, Brumbaugh,Grier 130).
"Consumers will seek congruence in the visual representation of a product's usage and the anticipated resulting outcome of consumption….[and] if the product is not in-line with the cultural needs of the consumer, then attitude towards the product and resulting purchase intent will be adversely affected by the marketing efforts”(Meyers 7). Often, it is the failure to accurately define the dimensions of digital target-markets that are segmented based on randomized data points, that leads to the media market-failure of a given product (Rittenburg and Parthasarathy 51).
In my research, I am attempting to understand if the consumer’s experience with targeted marketing is either consistent or beneficial respective to their willingness to trade their data and privacy in return for recommendations, services, and customization tools.
Bibliography
The integration of engaged and relevance-based advertising is creating a blurring of the lines between "organization responsibility," in that many marketers are adopting “new models of interaction with agencies and media partners.” Similarly, up to forty-two percent of marketers have incorporated the use of in-house advertising agencies, according to a recent ANA survey (Vollmer 11). The presence of the larger, full- service agencies hinders the viewership of brands or organizations to which the digital user may already have existing loyalties. However, the all-inclusive model that many media organizations are adopting lack “reliable and standard metrics” across their multi-platform systems. The partnerships between “digital agencies, traditional media agencies, and media companies to track ad placement, versioning, and effectiveness [with]... savvy mathematicians, engineers, and computer scientists” is inhibited by a the absence of “collaboration and a recognized set of metrics,” as Vollmer writes, “It’s one thing to collect digital information; it’s quite another to draw intelligence from it” (11).
Successful marketing is ensured with the implementation of “STP strategy—that is, segmentation, targeting, and positioning.” Segmentation, is the process of ‘segmenting’ or classifying into well-defined groups of target consumer profiles, under the assumption that there is a degree of homogeneity in the needs, desires or characteristics in these individualized sectors of the targeted-markets (Lynn). Segmentation works by delivering advertisements to consumers that will theoretically identify with the content of the media, and therefore identify with the product (Aaker, Brumbaugh,Grier 129). Target-marketing to the digitally segmented consumers can lead to the negative effects of unintentional viewership by the “non-target market,” or those individuals who feel incongruences with the delivered marketing materials. Often companies use this “captured information” to force onto the consumer intrusive messaging (Dahlström and Edelman). “Non-target” receivers develop a “decreased preference for an advertisement,” and therefore product, in believing that they are not the target of the advertisement (Aaker, Brumbaugh,Grier 130).
"Consumers will seek congruence in the visual representation of a product's usage and the anticipated resulting outcome of consumption….[and] if the product is not in-line with the cultural needs of the consumer, then attitude towards the product and resulting purchase intent will be adversely affected by the marketing efforts”(Meyers 7). Often, it is the failure to accurately define the dimensions of digital target-markets that are segmented based on randomized data points, that leads to the media market-failure of a given product (Rittenburg and Parthasarathy 51).
In my research, I am attempting to understand if the consumer’s experience with targeted marketing is either consistent or beneficial respective to their willingness to trade their data and privacy in return for recommendations, services, and customization tools.
Bibliography
- Aaker, Jennifer L., Anne M. Brumbaugh, and Sonya A. Grier. "Nontarget Markets and Viewer Distinctiveness: The Impact of Target Marketing on Advertising Attitudes." JOURNAL OF CONSUMER PSYCHOLOGY 9.3 (n.d.): 127-40. Web.
- Dahlström, Peter, and David Edelman. "The Coming Era of ‘on-demand’ Marketing." McKinsey Quarterly (2013): n. pag. Web.
- Lynn, Michael. "Segmenting and Targeting Your Market: Strategies and Limitations." School of Administration Marketing Collection (2011): n. pag.Cornell University; The Scholarly Commons. Web.
- Meyers, Yuvay Jeanine. "Target Marketing and the Product: Categorizing Products to Understand the Resulting Marketing Communication Outcome Measures." Journal of Management and Marketing Research (n.d.): 1-8. Print.
- Rittenburg, Terri L., and Madhavan Parthasarathy. "Ethical Implications of Target Market Selection." Journal of Macromarketing 7.2 (n.d.): 49-64. Web.
- Schneider, Joan, and Julie Hall. "Why Most Product Launches Fail." Harvard Business Review (2011): n. pag. Hbr.org. Web.
- Vollmer, Christopher. "Digital Darwinism." Comp. Booz&Co. Marketing and Media Ecosystem (2010): n. pag. American Association of Advertising Agencies. Web.