The directive from your boss--"we must go digital!"
Marketing is transforming at lightspeed, as we are officially in the new era of Marketing in a digital world. An entire industry has been created with new technologies and tools that enable marketers to operate more efficiently and effectively than ever. "Precision-targeting", "multi-touchpoint", "always-on" along with uncountable buzzwords are now thrown around casually, as old-school marketers try to impress their colleagues and prove they are as up-to-date as a 45-year-old man at a Katy Perry concert.
Amidst the evolution, Consumer Strategies have remained rooted in more fundamental causes: create an unbelievable brand experience, then reach as many buyers as possibleto connect to it. Hence, designing the right consumer strategy is absolutely critical to ensuring a powerful digital marketing campaign. (I guess all those "old school" marketers still have a role to play in the new world!)
How would you go about doing that? What are the essentials you need to design a compelling consumer strategy? Below is a brief, but not exhaustive toolkit to help you get started.
Articulate your Consumer Goal
It is critical as you start to first identify the consumer behavior you want to see happen. This can be categorized into three types. Of course, anyone who studies Buyer Behavior Science knows they are ultimately connected, but consider these:
1. Build penetration (i.e. NEW BUYERS) who are not buying your brand today.
2. Increase buying frequency among very infrequent or lapsed buyers.
3. Increase loyalty among current buyers.
The Negative Binomial Distribution of buyer theory suggests #1 above is the right behavior to focus on for both small and large brands. It has been proven that all brands follow a pattern of many non- or light-buyers and fewer heavy buyers. Hence, focus on the light ones--there are more of them and their consumption is starting from a low base. Digital channels play an absolutely critical role here, as they have the ability to reach billions of people, AND they can influence these people through those they listen to most (engagement).
Define your Market from a Consumer Lens
Many marketers make the classical mistake of too narrowly defining their market. In the Consumer Goods space, these "rules" are fictitiously created by a brand's own categorization of competitors and markets. Those brands that look not at categories, butconsumer needs, have a greater chance of success in rewriting the rules in which they compete. A nice buzzword going around the industry is "Consumer Jobs", which suggests a brand is "hired" to do a "job" for consumers. The McDonald's Milkshake, for example, is not just a shake, but is also a morning-filling snack that doubles as an entertaining, handheld option as you drive to work. Thinking about it through this lens, competition is broadened and innovation can really flourish!
Digital advertising has the ability to leverage needs to ensure the product shows up at the right time and in the right place, connected to these jobs. Google AdWords is a prime medium through which search and advertising converge. By understanding how a brand competes and what needs it is connected to, the brand is opened to more meaningful, consumer-centric apertures, and often in places where the traditional competitors may be missing.
Consider the Macros before the Micros
It's essential to consider a brand's macrostrategy, not just the microstrategy classically described by the 4Ps. Within a strong macro strategy, marketers must consider:
1. Environmental and Economic Situations
2. Consumer Lifestyle Trends
3. Political and Policy Changes
4. Demographic shifts and Population Changes.
Most of the above data is readily available on the Internet. A brand must ensure it is culturally relevant and up-to-date. In addition, targets change over time and brands must continually assess how they should or could update their target consumer profiles. For example, many mature countries are experiencing significant aging in their population, while Emerging Markets are seeing a growth in the population of Millennials. By understanding the implications of this, the right consumer strategy can ensure the brand does not aim at an audience that is too small or disadvantaged long-term.
Digital Advertising, in a truly "always on" format, must stay relevant to consumer and the news/trends that surround them. A thorough review of the macroenvironment ensures marketers look "big picture" before examining their MicroStrategy.
Know Where to Focus your MicroStrategy
For lack of better definition, I am describing the classical 4Ps as "Microstrategy." This is because doing this alone will only elicit average results. However, neglect this and you have nothing.
Brand owners often look at the 4Ps as equal in their impact, whereas multivariate regression statistics and other procedures will clearly show this is not true. The reality is that not all drivers are equal, and it's important to know the difference. When considering choices between them, marketers should carefully review the ROI for each activity and ensure that while they run numerical exercises, it still connects back to the overall Brand Goal they are trying to achieve. For example, should you invest in building Distribution Channels, or use the money instead to focus on price promotions in channels you are already in? Should you launch that shiny, new product, or just invest the money into advertising on your core products today? Ultimately, consumers should be at the forefront of the Microstrategy through a thorough understanding of the Consumer Value Equation for the brand. Each brand can assess, either quantitatively or through a mental-model what they believe is the right CVE, then target their marketing to reflect it.
Brands also need to consider this at an even more microscopic level when comparing Digital and Traditional Media. Media that expands reach as far as possible has the greatest impact to a brand's sales and ROI. The challenge historically was that Reach used to cost...a lot. Network television, which could get to millions of users, cost millions. However, the game is changing as Digital avenues such as Google and Facebook now have millions (or billions) of users. Reaching them is also more efficient than the typical blunt tool of television that did not ensure the right people got the right message.
Conclusion
This article gives a few tips on how to build a Consumer Strategy that will ensure your Digital Strategy is on point and meets its objectives. While the points above are not completely comprehensive, it is a starting point to a much greater understanding of the brand and how far it can go to add meaning in consumers' lives.
I'd love to hear your feedback, so please leave your comments below!
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