What(is(Iterative(Insights™(Day?

Iterative(Insights

InQcontext(Learning

Collaborative(Engagement

Multiple(Consumer(Touch(Points

Research(Principals(for(Better,(Faster(Marketing(Decisions

Learn more at: digsite.com/blog/iterative

About%Your%Speaker

Amy%ElkesPrincipal/Owner(ofAmy(Elkes(Consulting

Define&the&Right&Target&Audience&For&Your&Product

Amy(Elkes,(Principal,(Amy(Elkes(Consulting

Why&is&finding&the&right&target&so&important?

• Aggressive(and(growing(competition• Value(of(early(momentum• Capabilities(of(digital(and(social(media(targeting(• The(cost(of(getting(it(wrong(could(be(failure.

So,&why&do&so&many&companies&get&it&wrong?• Several(common(mistakes(get(in(the(way(of(defining(the(perfect(target(for(your(product(or(service:

1. FOMO2. I(am(My(Consumer,(My(Consumer(is(Me3. Need(=(Target4. Superficial(Target(Definition5. Wrong(Competitive(Set

1.&FOMO

• Picking(a(target(does(not(meaning(excluding(the(rest(of(the(potential(buying(universe• Don’t(fall(into(the(trap(of(trying(to(be(all(things(to(all(people• Example:(“The(snack(bar(for(everyone!”

Although(the(calories(are(low,((the(amount(of(protein(is(not(competitive(

against(other(bars.(

8 Joe(P.

They(were(all(grainy(and(had(a(sandy(texture.(They(all(seemed(overly(

processed(and(hard(to(recognize(what(could(be(in(them.

= Chrissy(K.

Case&Study:&Patagonia

• Target:%Dirt(bags

• Buying%universe:

For nearly 40 years, Patagonia has prided itself on selling high-quality, high-performance outdoor apparel

to dirt bags. Dirt bag is a term used affectionately around the company offices. It describes the kind of person who might organize an impromptu game of hacky sack in the middle of an El Capitan ascent,

casually enjoy a bottle of beer while free soloing a sheer face on Mount Arapiles, or hitchhike outside Tahoe

holding a cardboard sign reading Will belay for food!!!

- Slate.com, March 2015

Photo(credit:(Poppys8style.comPhoto(credit:(Patagonia.com

2.&I&am&My&Consumer,&My&Consumer&is&Me

• Typically(true(only(for(very(small,(entrepreneurial(companies(and(products• Avoid(the(“focus(group(of(one”(mentality• Example:(Organic(food

Early Adopter Current%Target%Consumer

3.&Need&=&Target

• New(products(and(services(exist(to(fulfill(consumer/customer(needs• But(needs(alone(do(not(define(targets• Consumer(targets(with(the(same(“need”(often(require(different(solutions

Target%Consumer%1 Target%Consumer%2

Need:%An(alternative(to(high(heels(88 comfortable,(yet(stylish(shoes(I(can(wear(to(work(that(won’t(hurt(my(feet.

4.&Superficial&Target&Definitions

• Target(definitions(often(fail(to(go(deep(enough• Demographics(– Nielsen(statistics(should(not(be(the(yardstick(anymore• Attitudes(– Hard(to(define(and(even(harder(to(verify

Target:%Female(Baby(Boomers(focused(on(healthy(living.

The&targeting&spec&too&often&left&out:&Behavior

• Addresses(the(gap(between(“what(I(say”(and(“what(I(do.”• Unlike(attitude,(behavior(is(trackable• Behavior8based(targeting(is(one(of(the(key(elements(of(Iterative(Insights.

Target:%Female(Baby(Boomers(focused(on(healthy(living:(Must(exercise(regularly,(consume(a(daily(vitamin,(and(purchase(brands(such(as(Kashi,(Skinny(Pop,(and(

Vitamin(Water.

5.&Wrong&Competitive&Set

• Think(carefully(about(the(competitive(set• What(other(products(fulfill(a(similar(need?• What(differentiates(your(target(consumer’s(need((or(ideal(solution)(from(the(products(already(available?(

• Example:(Functional(coffee(drink

Case&Study:&Honest&Tea

• Target%Consumer%Profile:%Age(30865(•(Likely(to(live(near(a(concentrated(urban(area(•(Likely(to(have(graduated(college(or(have(an(advanced(degree(•(Likely(to(currently(be(bottled(water(or(RTD(tea(drinkers,(occasionally(drink(iced(cappuccino(•(Interested(in(running,(hiking(and(outdoor(healthy(activities•(Agreed(that(they(wanted(something(not(as(boring(as(water(but(didn’t(have(all(the(“junk”(in(commercial(bottled(tea.(

From the start, our product was less sweet than what everyone else was offering. And that was why we felt it was relevant, because

everything out there was much more like soda than it was like tea. And it’s grown. Our differentiation has grown. So now everything

we offer is organic. A great deal of what we offer is also Fair Trade-certified. We’ll continue to raise the bar and find new ways to set ourselves apart. But we’re too small to compete directly with

the big companies on their terms. We have to do it on our terms.

- Seth Goldman, Co-founder, Honest Tea

Sources:(HonestTea.com,(Seth(Goldman(of(Honest(Tea:(The(‘Perfect(Ingredient’(for(Social(Impact,(Wharton.Upenn.edu

Defining&the&right&target&audience

• Don’t(be(afraid(to(home(in(on(a(specific(consumer(group.((

(Don’t(try(to(be(all(things(to(all(people.)

• Don’t(assume(your(consumer(thinks(like(you(do.

• Start(with(the(need,(but(don’t(stop(there.

• Include(behavior,(not(just(demographics(and(attitudes,(in(your(

target(definition.

• Give(thoughtful(consideration(to(the(right(competitive(set,(and(

define(a(target(that(is(not(fully(satisfied(by(competition.

Thank%you….%Questions?