Gemeinschaft

By Jeani Burns



Over the past several years, marketing budgets have been shrinking. It is imperative that outreach be done efficiently and with certain knowledge to stay within acceptable budgets and achieve results.

A well known researcher, Bill McGill, Ph.D., president of Monalco LLC, preaches the following steps that discuss the detail and time required to glean the most from marketing. Properly targeted discovery and implementation makes a huge difference to businesses.



All Customers Are

Not the Same

In working with customers, it is oftentimes convenient and tempting to treat them all the same. By treating all customers the same, one marketing message can be promulgated. One medium can be used to advertise, and mental energies can be put to other aspects of the business.

It is the rare situation however, when all customers are alike - even with respect to a single product. It is rarer still when trying to promote and market a product that has many aspects. Business groups that work together to promote a range of products and services need to remain ever-cognizant of the variety of persons who visit their stores and shops. The more unique and varied the stores and shops, the more varied the customer base is likely to be. In response, market researchers often speak of customer segmentation.



Customer Segmentation

As an example, consider a well-known location in Howard County. The Historic Savage Mill is a unique community. First, how many other refurbished 19th century textile mills is the public aware of? Where can they go to avoid the ubiquitous chain store? With 265 stores including antique dealers, artists and craftsmen studios, Victorian traditional and country furniture stores, handmade and imported jewelry shops, custom and original sweaters and clocks, Savage Mill has earned its reputation as a singularly elegant community.

Segmentation means that individual interests are piqued, that individual needs are met, that individual value systems are supported and that beliefs about what is a community are shared. It is one thing to tell a would-be customer that Savage Mill is a unique community with unique offerings and services and quite another to say that: "We know you are interested in the fine arts and we have these stores that cater to such interests. And, while you're visiting, join other fine arts buffs at one of our fine dining restaurants."

For communities seeking a Gemeinschaft (a true feeling of community), simple surveys can go a long way toward identifying and explicating the interests, attitudes, needs, beliefs and values of current visitors and residents, as well as potential ones.



Target Your Population

For example, a community survey was designed to capture the responses of about 1 million individuals in the area surrounding a target community, called Gotham for this example.

Using benchmark methods, Gotham's area population of 1 million potential residents and visitors was sampled (sample size was 600) to determine awareness levels, needs, interests, etc. The results over four survey periods (two years apart) showed that awareness had been bumped from less than 50% to more than 70%, thanks to a television and radio promotional campaign aimed at improving awareness.

After the fourth survey was completed and the data analyzed, it was determined that awareness levels were at a peak. The goals were accomplished. Or were they? While for some awareness had translated into visits or residency in Gotham, for a majority it had not (determined by using a host of markers for determining visits and residence growth).

In response, the 600 people were segmented into groups that would represent the larger population of 1 million (yes, this is a sufficient sample size to do so). As a result of the analyses of the survey data, five types of individuals were determined. The results are reported in the accompanying table.

Using the stated typology, Gotham's business district reached out to the different groups using a combination of group-appropriate modalities (newspaper vs. web) and group-relevant messaging. In less than one year, there were more than 6,000 new "loyalists" who had voluntarily signed up to receive monthly updates on "happenings in Gotham."

Targeted to specific groups, one special package introduced a number of restaurants, all of which were overwhelmed with business over a one-week period. Other group-specific promotions received notoriety - including national recognition for an employee recognition week. Currently under consideration are plans to develop a branding campaign in which specific brand aspects are emphasized with specific groups. All the while, the overarching brand message is: "You are Gotham." The same survey research has shown this as a pervasive sentiment among respondents and one that will ring true thanks to group segmentation.

Taking the time and the steps to avoid spending marketing budgets on programs that could be much more effective with research - and continued re-evaluation is the key to improved return.



Jeani Burns is president/CEO of BMCGroup Inc. She can be reached at 240-568-9181.