We’ve created PRODUCTIZATION Lists 1A: FEATURES, and 1B: BENEFITS of our offering. In the previous video, we began PRODUCTIZATION List 2A, the initial projected Target MARKETS for our product, service, or application. But you must remember, we are NEVER selling to Target MARKETS. We are always selling to potential USERS, a tightly targeted audience of actual people to motivate them to act as our marketing directs.
Target USERS, or the actual people likely interested in what we have, are derived from our Target MARKETS list. To identify target USERS for our offering, we drill down to individuals within our broad markets to help us define WHO these people actually are. Through purchases, clicks, emojis, likes and shares, or sites we visit and engage with frequently, marketers now know where most of us are, and what we’re doing at any given point during the day, what we buy, watch, listen to, and talk about. (clip of globe to guy)
We know from our Target MARKETS list that women are a primary market for PHP Advocates. Though men will probably be a good percentage of the experts on the site, women will more likely be the users, since women are more inclined to ask for help then men. But women are close to half the people on Earth…And it’s virtually impossible to effectively market to half the planet. So, we need to get more intimate with the individual, the people our offering will serve.
These two women are the same sex, and race, thought virtually everything else about them is different. Most of their DEMOGRAPHIC data, from their age, to marital status, to their education and income level, is radically different. They both may be located in the Seattle area, but it’s likely the young woman is the city, or a campus dweller, while the older woman is living in the suburbs, so their GEOGRAPHIC data may have subtle differences. Their major differences— the characteristics that define these two White women as individuals— will largely be revealed through their PSYCHOGRAPHIC and BEHAVIORAL data, from their purchases and online behavior to their credit rating.
WOMEN are a Target MARKET for my mobile app, but WHICH WOMEN will we target with our BRANDING and advertising campaigns that will garner the greatest response. In this example, my “lowest hanging fruit,” or most obvious target USER is this upper-income, middle-aged White woman, likely living in the suburbs of a major city. She will be tech-savvy, and uses the internet daily through her many devices. Her buying habits show large grocery bills and school supplies, indicating she has children. She spends hours online daily for research and work related purposes. Her digital signature and her online bio reveal she’s a contract attorney with a famous Silicon Valley law firm. This older woman will likely realize the most benefits from using PHP Advocates. She can get recommendations of qualified tutors, or college consultants for her kids, or trusted caretakers for her aging mom, all on my secure, easy to use application!
Marketers are now gleaning much more personal information from BEHAVIORAL sources. Everyone from your internet provider to Google, to Facebook, to your cellphone carrier is tracking our usage and purchase behavior now. We use this, and PSYCHOGRAPHIC data to project the Target USERS most likely to want our offering
But what is the purpose of segmenting all this data to create target MARKETS and USERS?
The tighter you are able to target individual behavior, the more likely you will sell them.
We identify a potential candidate for our offering once we’ve discovered what they respond to, revisit, and engage with again and again.
We find WHERE they are, where they hang out, both off and online, so we’ll be able to reach them when we launch our marketing material and ad campaigns.
We identify patterns in their behavior, find the TRIGGERS that get them to act, and then develop advertising and marketing with PRIMERS that motivate them to buy, or buy into our messaging.
Step 1, in the RAF marketing method, GET READY and PRODUCTIZE your idea, must happen FIRST in the startup process. When we understand WHAT we are selling (FEATURES & BENEFITS), and WHO is likely to buy our product or service (TARGET MARKETS & TARGET USERS), we dramatically increase the odds of creating advertising and marketing that SELLS our offering.
List 2B. Targeting actual PEOPLE.
Target USERS are actual PEOPLE within a specific Target MARKET. Big business now tracks almost everything you purchase. Marketers are getting intimate with your sentiments through the emojis, words and phrases you choose in your social media updates. Knowing how you feel at any point in the day helps us define the most optimal times to motivate you to buy into our offering or messaging.
But even if you don’t have access to big data collection and analytics, you can still identify and even reach PEOPLE you want to sell to through Social Media Marketing (SMM), Meetups, events and other engagements. We’ll drill down on finding and communicating with your target users throughout this course.
In much the same way we translated our FEATURES (List 1A) into BENEFITS (List 1B), identifying Targeting USERS requires honing in on the members in each of the broadly segmented MARKETS, and further refining their characteristics to project the type of PEOPLE likely to find value in our offering.
Still using my PHP Advocates app as the example, I can identify specific characteristics about my potential USERS from my Target MARKETS List. From this list, I’ve already determined that my lowest hanging fruit, my most likely market to influence, and hopefully sell my app to, is women.
So, WHO are these women between 45 -70 years old? Well, they’re likely Baby Boomers, so we’re narrowing the age tighter, to between 45 – 65. If they are upper income, it’s likely they are White, at least in the United States today. It is bad marketing to ignore known data simply to be politically correct. Marketers must use legitimate statistics as a data source to market our offering to the most likely adopters.
Our upper income White female Baby Boomer is likely working full time, a career woman, probably raising kids was well. She must be an avid smartphone user, and tech-savvy enough to be able to download apps to have any interest in any online application. She’s likely on social media, even if just for the news, or to watch streaming movies.
Armed with data of specific behavior patterns of my Target USERS gives me clues on where to find them, how to get their attention, and eventually engage them to act as we direct. Likely, my Baby Boomer is on LinkedIn, a popular social network for professionals. If she’s divorced, which half the population is, she may be frequent a ‘mature singles’ dating app, or possibly be in a Facebook group for mid-life, divorced moms, or a networking Meetup of working women in my area.
Data on aggregated behavior patterns of specific individuals, also known as PERSONALIZED data, gives me hints on what aspects of PHP Advocates she may find useful. It also helps me identify online and in-person venues to present, through my marketing efforts, my product or service to her.
Other potential USERS of PHP Advocates are discovered by continually refining your Target MARKETS into Target USERS as shown. Younger women are another Target MARKET, but not all younger women are my target USERS. Career Millennials— late teens to early 30s, are good candidates to market my app to because it’s likely they already use mobile peer-to-peer services, and other SaaS applications. Getting legal advice from an online attorney about setting up the right type of corporate status for your startup, or career advice, through a LIVE Skpe session with a qualified counselor is more likely with working Millennials born with a cellphone in their hand, than Baby Boomers learning to master new technology.
PHP Advocates will have many expert teachers in academic and industry-related subjects available 24/7 LIVE online. STUDENTS are another broad MARKET for my app. ALL students is too broad to have any significance, of course. So, we drill down to specific characteristics of actual students, and segment them into Target USERS likely to find value, or a USE for my software.
Other likely USERS are work-at-home moms, looking for expert baby advice or trusted childcare. Startup newbies are likely USERS of my app to get legal advocate to help them set up their corporation, and write their Non-Disclosure agreement for potential hires to sign.
Each of these potential MARKETS translates into somebody, somewhere, individual PEOPLE that can use my application. We segment these people into groups we call ‘likely customers,’ or our potential Target USERS.
The process of TARGET MARKETING is a combination of data science, and the art of psychology. We determine Target MARKETS and Target USERS with educated guesses, based on the data, and what we know and continually discover about what motivates people. While the Target USERS category is still somewhat broad, we can target our advertising and marketing campaigns at these groups of individuals first, then analyze the results of our marketing efforts, and from there, further refine our Target USERS to create a more accurate profile of the PEOPLE who will benefit from our product or service.
You will dramatically increase your odds of a successful launch by tightly targeting your marketing and advertising to your most likely Target USERS. And, you’ll realize greater ROI— return on your marketing investment, with every subsequent advertising campaign by keeping in mind you are NEVER selling to Target MARKETS. You are always selling to potential USERS, actual PEOPLE who will find value in your offering.
Be sure to save your TARGET MARKETING lists to their correct folder. And remember, Target MARKETS and Target USERS lists, like ALL PRODUCTIZATION lists, should be dynamic, ongoing, and updated with every new release, upgrade, or newly identified benefit, solution or potential target audience.
SLIDE 6—PREVIEW SLIDE (elevator pitch)
It’s important to being marketing your IDEA as soon as you’ve PRODUCTIZED it into an OFFERING of value, which you have done once you’ve completed List 1A— FEATURES, List 1B— BENEFITS, List 2A— Target MARKETS, and List 2B— Target USERS, these first 4 of the 8 required PRODUCTIZATION Lists.
As the CEO of your IDEA, your #1 job is to SELL IT— Generate excitement. Buzz! Even before your product or service is produced. A working draft ELEVATOR PITCH begins in the PRODUCTIZATION process to help us define our offering better to ourselves, and our team, and to give us the words to chat it up, to everyone and anyone who’ll listen. The greater your ‘reach’ to make potential USERS aware of your offering, the more likely you are to sell it when you launch.
Video 8— Constructing the first draft of your ELEVATOR PITCH is next…