market question

I have a general question for those wishing to help answer.

Which would you prefer if you were a business owner. Your business being a
big company with lots of inventory product offerings of any kind.

Option 1

Google takes maybe 50 cents a click through.
So you get targeted marketing that costs 50 cents * 4,000 people for a
total of $2000.
So option 1 is 4,000 targeted people coming to your website for $2,000.

OR

Option 2

A website can deliver 250,000 internet users to your website for $2,000.
The users might be anybody, and its not targeted.


Which would companies rather have? The targeted 4,000 or the general
250,000.

Is there a strong reason to prefer the 250,000 general internet users?

Any help is appreciated.

On Jun 12, 1:47 am, "steven" <s...@hotmail.com> wrote:
>
> Which would you prefer if you were a business owner. Your
> business being a big company with lots of inventory product
> offerings of any kind.

It doesn't work this way. Product characteriestcs are of utmost
importance in choosing advertising strategy.

> Is there a strong reason to prefer the 250,000 general internet
> users?

There may be. Say, you are Fidelity and you are trying to market your
401(k) rollover services. So your target is people who recently
changed jobs and had a 401(k) at their old employer's pension plan.
No agency can deliver you a target audience with these parameters; you
may be better off taking the shotgun approach, which also helps your
visibility with those who do not have the need for your service yet,
but may in the future.

Cheers,
NC

> I have a general question for those wishing to help answer.
> Which would you prefer if you were a business owner. Your
> business being a big company with lots of inventory product
> offerings of any kind.
>
> Option 1
> Google takes maybe 50 cents a click through. So you get
> targeted marketing that costs 50 cents * 4,000 people for
> a total of $2000.
> So option 1 is 4,000 targeted people coming to your website
> for $2,000.
>
> OR
> Option 2
> A website can deliver 250,000 internet users to your website
> for $2,000. The users might be anybody, and its not targeted.
> Which would companies rather have? The targeted 4,000 or the
> general 250,000.
> Is there a strong reason to prefer the 250,000 general
> internet users?

--------

Steven, it depends on how broad your market is and how you are
segmenting your market. I have the feeling you're doing "me too"
marketing which is a mistake. Make sure to adequately segment your
market and match it up with your product in definitive ways or you will
be at risk of invisibility.

If you were doing "me too" marketing, and didn't want to change that,
(me-too marketing is selling products generally available from a number
of sellers, you're competing on price) just reduce the problem to
something mathematically solvable by asking...

250,000 / 4,000 is equal to 100 / X?

Which is the same as asking 100 x 4 / 250 =3D ??

My Answer Came to around 1.6

So, if 1.6 percent of the internet public (or more) comprise your target
audience, then the 4,000 is not as good, and becomes less
disadvantageous as the public percentage who are in your market rises,
and those over the 1.6 percentile won't see your offer because of the
4,000 limitations.

But to the degree that the 1.6 % (that is, the 4,000 out of every
250,000) is proves greater than the percentage making up your target
market, it then becomes more advantageous to go with the 4,000.

Now if you are selling wholesale general stock on the I-net I'd guess
your broad target market is above the 1.6 %, (again, assuming you're
penetration pricing or low pricing) but be sure to double check that
percent out with industry resources to see if you're falling higher or
lower.

If your prices aren't significantly lower or you don't have highest
quality it's a doomed strategy before you even begin. Tell'em zion said
so.

That all said... Here's the real hearbreaker - The sales you make are
tied into your targeting. You're dirt dirt dirt cheap, or have exclusive
inventory, you're targeting can't be based on something as broad as
"lots of inventory product offerings of any kind".

That means, I'd say, that you will need to segment your product by
lines and set your website with various landing pages. Otherwise you
will end up with a "We sell Cream Cheese Brownie Mix, earthworms, and
Wedding Veils" type of thing. Not good. Too diverse and circus-like.

You could maybe break it down to decorative accessories, electronics,
wellness and entertainment categories for example. That'd be much
better.

This would be more expensive up front, Because you'd be running more
Ads. But it would bring you a higher return on monies spent, which is
the point. But if you can only drop 2 Grand right now, then either go
with the hottest line and promo that, or bring social entrepreneurship
into your company mission and target by that, or target by the type of
company you are ie: a 100% green company.

But for crying out loud, don't just go out there all general and such,
because the fact remains, people (especially retailers) aren't too keen
on buying from someone who sells everything under the sun. That's unless
you have well established brand equity and have the history of customer
satisfaction behind you.

So.. your question as asked is answered with the 250,000.

But as far as improving your overall approach, improve your strategy and
go with the more targeted 4,000 deal, because that's the one which will
send the better "Meta-message" or implied credibility with your new
improved targeted message. It will set you apart more, and that's the
issue I see here.

Stop back in & let us know how it all goes works out .

~zion

"steven" <svfox@hotmail.com> wrote

> Which would companies rather have? The targeted 4,000 or the general
> 250,000.

To target anyone/everyone with your business advertising is a sure loser.

For example, a liquor store. The "approach the masses" advertising mentality
might organize a marathon or a bike race that passes the store. The last
thing on those people's mind is to stop what they're doing, walk into a
store and buy booze. C'mon!

Now, if you could send a hundred wine drinkers through the doors, or fifty
people who are planning parties and need to buy beer, that's worth a hell of
a lot.

What do you think?

[malikali86]

I think targetted marketing is alot better than other way you said. ROI would be more in most cases.