Focus marketing: lock in precise customer groups and spend marketing expenses where possible.
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In the 1950s, with the rapid development of industry and the diversification of products, people were no longer satisfied with “one kind of commodity”, and the demand for customization was increasing, and Marketing Segment (opens in a new tab) came to prominence. Companies began to respond to market demand and provide different products for different consumer groups.
In order to accurately understand customer needs, credible “demographics” are used to segment consumers (gender, age, geographical location, etc.), evolving into the so-called “Segment Marketing (opens in a new tab)”. With the improvement of resources and technology in the 1970s, companies began to learn to segment consumers’ psychological states, interests and preferences, etc., and conduct incisive analysis of customers’ purchasing behavior.
The core concept of market segmentation
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Today, using the word “segment” as the golden criterion for product planning and marketing is the most commonly used method for corporate brands. The core concept of focus marketing is to “distinguish” consumers. The more detailed the customer groups are, the more accurately they can place advertisements.
Depending on the consumer market and industry/commercial market, companies can differentiate consumers and conduct market analysis as follows (NetMBA.Com (opens in a new tab)):
Success Stories of Korean Beauty Brands
Well-known Korean brands use the principle of focus marketing to target target groups for marketing Product classification itself is also a marketing rule
Seize the shape of specific consumer groups to set product positioning, and closely integrate products with consumers’ life attitudes. Take the Korean beauty brand “innisfree (opens in a new tab)” as an example. They use pure and pollution-free plants as product ingredients, emphasize “naturalism”, and use natural ingredients to create healthy and beautiful skin. From Korea to Taiwan, they have also opened flagship stores.
Innisfree’s trademark is designed with trees and green colors, and it has been endorsed by well-known Korean artists Lee Min Ho and Yoona. The price of a single product is limited to 1,000 yuan, focusing on affordable, natural, and beauty brands. Since the brand emphasizes the spirit of environmental protection, it has implemented an empty bottle recycling reward system. Members can receive 25 yuan in shopping credits as long as they bring used empty bottles to the store. In order to promote the brand in Taiwan, inisfree even jumped on the sticker craze (opens in a new tab), as long as you join the inisfree Taiwan official account and become a friend, you can download the stickers of the artist Lee Min Ho (opens in a new tab) for free.
Use the fresh image and popularity of Korean artists to target young people who like Korea. (Picture reproduced from innisfree Facebook fan page (opens in a new tab))
Keep up with the marketing methods of Taiwan LINE Stickers, cooperate with different industries to increase brand awareness and attract friends. (Picture transferred from innisfree Facebook fan page)
The product packaging is simple, uses natural colors, and combines flowers and plants to enhance the naturalistic image. (Picture transferred from innisfree Facebook fan group)
Based on the above market segmentation rules and studying innisfree’s product positioning from the following table, you can clearly understand the main consumer groups and innisfree’s marketing orientation:
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As of 2014/12/15, there are more than 2.8 million official LINE friends. (Picture transferred from mobile phone screen shot)
Conclusion:
Through the popularity of Korean artists combined with LINE sticker marketing, it has successfully attracted more than 2.8 million people to become innisfree’s official friends. Its Zhongxiao flagship store has a spacious environment of nearly 60 square meters and 3,500 plants. In addition, Korean artists came to Taiwan to support it, and it has successfully aroused topics. Since it started operating in Taiwan in April 2014, as of October, the number of official members has exceeded 50,000.
Innisfree makes good use of local resources to create pure and pollution-free characteristics, promotes green life and naturalism, and has successfully created a distinct image. The empty bottle recycling program also responds to the concept of environmental protection and caring for the earth. It has specialized stores overseas in Hong Kong, Taiwan and other places, and continues to expand.
Establish brand branch strategy
Establish brand branches to include all consumer groups
Common “sub-brand (opens in a new tab)”, “joint brand (opens in a new tab)” is equivalent to a branch of the same brand, such as a well-known enterprise SHISEIDO (opens in a new tab)), also sells similar products, but divided into many brands: ANESSA (opens in a new tab)), ettusais (opens in a new tab), Love Mirror (opens in a new tab), etc.
These brand branches are all brands for different consumer groups. Some people focus on sun protection and whitening, some people pay attention to skin care, and some people like beauty makeup. Based on differences in consumer preferences and economic capabilities, companies set up brands and specifically develop products for different consumer groups with different preferences.
Cultivating customer loyalty
Loyalty considerations─grab new customers and seize returning customers!
Marketing has multiple purposes, and it is crucial to analyze the marketing methods to determine what kind of customers the company can capture. In order to strengthen the relationship between customers and enterprises (brands, products), loyalty (opens in a new tab) is a very important basis for judgment. The following methods can be used for segmentation:
The substantial benefits of focus marketing
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The more detailed the customer groups are, the more accurately you can find the main sales force; in fact, the target customer group you have targeted may also be looking for you. While the two are interested in each other, they can reach a consensus and complete the sale. And this is one of the reasons why Focus is so easy to succeed.
Segmenting customer groups can bring the most direct benefits to enterprises. Includes:
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Reduce unnecessary advertising expenses and only need to advertise for target customer group.
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Recover advertising expenditures, and every marketing expense is spent on the main sales force.
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Target the target group and increase the overall sales probability.
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Enterprises and customers like each other and it is easy to develop long-term relationships (from consumers to brand lovers).
Focus marketing has been applied in many places, such as the commonly used Facebook ads (opens in a new tab), Google AdWords keyword ads (opens in a new tab), etc., all of which have settings such as filtering age, geographical location, interests and preferences. When setting up ads, you are distinguishing your customer base and finding business opportunities for your company.
There are hundreds of marketing methods, and different industries will have different marketing orientations. As long as a company can accurately grasp the focus marketing, it can create the most suitable products for consumers and achieve the purpose of mutual assistance and mutual benefit. It is an indispensable marketing technique and worth a bold try for companies!
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Vista Cheng speaks and runs workshops on AI workflows, writing and content systems for companies, schools and public agencies.
