Defining your target audience is one of the most important factors in any marketing campaign, and your job is made easier by focusing your marketing efforts on appealing to a specific group of people.
Ideally, you’ll have defined the target market for your product much earlier than the marketing stage. However, since drip campaigns enable you to segment your audience, you can refine your target market even further for each individual email. Some studies have shown that segmented campaigns result in a massive 760% increase in revenue.
Chipotle, while not a small business does have many marketing characteristics similar to those of small business. They work with a small budget, barely advertise on TV and do their own work in-house.
US companies spend millions of dollars each year developing the best strategies and tactics to reach their target audience and increase sales. In fact, a survey of chief marketing officers (CMOs) found that in 2015, companies were spending between eight to 11% of revenue on marketing. The messages and media used to communicate a company’s offerings are key factors in business growth, but the increased prevalence of social platforms and instant access to information demand that organizations shift emphasis from “managing the message” to “enabling the conversation.”
How’s that possible? It comes down to their specific marketing strategy. A strategy built on these marketing attributes:
Marketing strategy plan … Products that are remarkable
These are the ones that get talked about. Marketing starts with having products and services that are better than the competition, making them remarkable and worthy of being discussed by your customers.
What your best customers are worth
They are worth far more than your average customers. It starts with knowing who your customers are, then knowing the best of the group.
Market strategy … customers don’t buy what they need
Customers buy what they want. Gather as many insights as possible by observing what they do. Asking them is not as valuable as observing them.
Marketing strategy examples … new ways of spreading your messages and ideas
These new ways (blogs, permission-based RSS information, APPS, consumer fan clubs) are quickly proving how well they work. Traditional ways of interrupting consumers (TV ads, trade show booths, junk mail) are losing their cost-effectiveness.
The game of marketing has changed significantly over the past decade. It’s not price – it is relevancy, difference, and value. Chipotles know this and have built its strategy around these concepts.
There was a recent AdAge report documenting the non-traditional elements of Chipotle’s CMO and his team. Here are a few key points from this report:
Chipotle marketing mix.
Chipotle has targeted millennials for its primary customer segment.
Its strategy is to win over millennials by solidifying its reputation for freshness, and offering a healthier fare than its competitors.
The brand also gained reputation by shying away from traditional media, because younger audiences feel like it’s less authentic and less easy to connect with.
Even Chipotle’s first national TV ad wasn’t traditional by any means. It featured Willie Nelson telling a two-minute animated story of a farmer whose business grows massive before his conscience convinces him to revert to more humane, sustainable operations.
It’s working at a more grassroots level to build support too, like with its Cultivate food and music festival and its Farm Team loyalty program — both are focused on humane food sourcing and organic farming.
In addition, Chipotles announced it would become the first U.S. restaurant chain to remove as many GMO (Genetically Modified Organism) foods from its menu as possible. To complement the announcement, and to curb any skepticism about the source of their products, the company created and released a three-minute video commercial on YouTube called “The Scarecrow.” The video strategy was to appeal to emotion to make it extremely impactful.
It was very successful and went viral and received more than five million views in fewer than two weeks. It is a great example of how companies are utilizing digital resources to brand and market in more creative ways.
However, they didn’t stop there. Marketing these days requires knowing your audience and the best channels to reach that audience. You can’t just create and release a commercial on YouTube … and be done with it. Especially one this good.
Market strategy … Spreading your messages.
You need complementary messages and techniques. Chipotle knew this and created a mobile app video game that presents the same concept as the commercial, and made it available for free downloading through the Apple App Store.
The combination of viral video and video game app is attractive to their target market, millennials. Chipotles know multi-channel marketing and integrated advertising are the new norms.
The lessons to learn from the Chipotle marketing strategy?
Know which customers you want to target, study their characteristics, likes and dislikes, and build your campaign strategy around these.
So … guess what? Chipotle’s campaign strategy, while different than their larger competitors, is not so unconventional, is it? But very creative and unique, yes?
The bottom line
In summary, the game of marketing has changed significantly over the past decade. It’s not price – it is relevancy, difference, and value. What are the marketing lessons from your business?
Have any questions or comments to post below?
It’s up to you to keep improving your social media marketing efforts.
All you get is what you bring to the fight. And that fight gets better every day you learn and apply new lessons.
When things go wrong, what’s most important is your next step.
Try. Learn. Improve. Repeat.
Are you devoting enough energy to improving your advertising?
Do you have a lesson about making your advertising better you can share with this community? Have any questions or comments to add in the section below?
Digital Spark Marketing will stretch your thinking and your ability to adapt to change. We also provide some fun and inspiration along the way. Call us for a free quote today. You will be amazed at how reasonable we will be.
More reading on marketing and advertising from Digital Spark Marketing’s Library:
More reading on advertising from Digital Spark Marketing’s Library:
Mike Schoultz is a digital marketing and customer service expert. With 48 years of business experience, he consults on and writes about topics to help improve the performance of small business. Find him on G+, Facebook, Twitter, Digital Spark Marketing, and LinkedIn.
