One of the advantages for Big Box retailers is that they can Hoover vacuum up MDF (market development funds) directly from factories around the globe. Take major TV manufacturers – the general manager of the factory has a budget and they can use it to drive categories, distribution channels, etc. So when Best Buy comes calling and says they need $XXX in order to properly promote the brand new and improved super TV in their consumer catalog, chances are they will get support from the manufacturer.
One of the dis-advantages for Big Box is that once they get promotional money, they lock into a pricing roadmap designated by the manufacturer and have to plan their catalogs and on-line promotions months in advance. And this dis-advantage is where smaller retailers can use hypertargeted marketing to their advantage.
What is hypertargeted marketing? It’s focused marketing, by product and demographic, where speed and dexterity are the keys for success. Let’s break down a hypertargeted marketing campaign.
First, keep in mind that Big Box is going to be pushing mass market type of goods, even if we’re talking about ‘luxury’ products. They’ll advertise the good stuff, but not the great stuff. So your advantage is in knowing that you’ll need to promote the step-up features that separate the great from the good. And, that you can winnow the demographic pool using targeted email or social messaging. Think of it as target practice, instead of a shotgun blast.
Second, use the advantage of speed. You can decide much later in the supply chain process what you want to target and who you want to target to. Keep your ear to the ground and decide which products are hot at any given time and which of your customers might be inclined to be looking for that particular product. Then use speed to pounce – a combined web and social media campaign that can switch gears as needed. Running low on inventory for certain SKUs? No problem. Move to other SKUs and demographics you have and are prepared to hyper-target.
Finally, combine hypertargeted marketing with pop-up experiential events. Build the buzz and build excitement. Consumers want to be thrilled, entertained, educated and appreciate white glove service when shopping for luxury or upscale products. They want to feel special and unique. And that’s exactly what hypertargeting is all about.
Independent retailers have the advantage of speed and dexterity. Use them to hypertarget your marketing efforts.